Can you handle unexpected expenses? Do you overreact to market volatility? What’s your outlook for your financial future?
Answering these questions can help you analyze the state of your financial wellness—from how well you deal with economic stress to how you react to a booming economy and bullish stock market.
Your financial wellness doesn’t exist in a vacuum. It’s an essential feature of your overall well-being. So what is financial wellness, exactly?
For many people, being financially well means existing in a state of “nevers.” Never experiencing financial stress or anxiety; never feeling challenged financially. In short, always being blissfully content with the status of their finances.
However, financial wellness shouldn’t mean the total absence of financial worry or uncertainty. Stressful moments will occur in everyone’s lives. In fact, some concern over financial matters may motivate you to act. Challenging yourself to achieve lofty financial goals can be exciting and rewarding!
Instead, financial wellness means having a strong enough foundation and a clear financial strategy to make setbacks more tolerable and financial adversity and healthy risk-taking less daunting.