In the realm of personal finance, the term “financial freedom” often reigns supreme. It’s a tantalising concept, promising an escape from the shackles of financial stress and the ability to live life on your own terms. But lately, I’ve found myself gravitating towards a different goal: financial wellness. While financial freedom may be the end goal for many, prioritising financial wellness can lead to a more sustainable and fulfilling journey towards financial security.
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So, what exactly is financial wellness, and how does it differ from financial freedom? Financial wellness encompasses more than just the ability to pay your bills or accumulate wealth; it’s about achieving a state of balance and peace of mind in all aspects of your financial life. It involves making informed decisions, setting realistic goals, and nurturing a healthy relationship with money.
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My sense of financial freedom is to focus on peace of mind and financial wellness, not freedom from finances. Like any other aspect of life, I realised that a person’s financial well-being is never static. Financial wellness is a constant work-in-progress that needs time and attention and never reaches a true pinnacle. I acknowledge that when it comes to monetary worth, there will be rough times and easy times, struggles and triumphs. On my financial wellness journey, I’ll need to confront each situation head-on and judge it against my goals on personal and familial terms – not society’s.
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When there is a lull in work or cash flow, it means living below our means, and that is OK. From a financial wellness perspective, I am doing just fine. I’ll also keep an eye on my overall financial goals. That includes ensuring I can pay bills and be as debt-free as possible while still looking toward the future. It’s prioritising having an emergency fund and saving up for my retirement. But it also means putting money into tools that help me address other aspects of overall well-being, i.e., physical, mental, and social. Financial well-being will continue to include consciously spending time and money on the things or experiences that allow me to create memories with family and friends, and donating to causes near and dear to our hearts.
Here are a few reasons why I’ve chosen to prioritise financial wellness over financial freedom:
- Emphasis on Well-being: Pursuing financial wellness places a greater emphasis on overall well-being rather than simply accumulating wealth. It acknowledges that true wealth encompasses physical, emotional, and mental health, along with financial stability. By focusing on holistic well-being, I aim to create a more fulfilling and meaningful life, rather than solely chasing financial milestones.
- Resilience in the Face of Uncertainty: In today’s unpredictable world, financial freedom can feel like a distant dream for many. Economic downturns, job losses, and unexpected expenses can derail even the most meticulously crafted plans. However, by prioritising financial wellness, I’m better equipped to navigate these challenges with resilience and adaptability. Building emergency funds, diversifying income streams, and practising frugality are all strategies that contribute to financial wellness and provide a safety net during uncertain times.
- Mindful Spending and Saving: Instead of striving for extravagant displays of wealth or early retirement, I’m more focused on mindful spending and saving habits. Practicing mindful consumption involves aligning my spending with my values and priorities, rather than succumbing to societal pressures or impulse purchases. By cultivating a sense of gratitude and contentment with what I have, I’m able to save more intentionally and avoid the pitfalls of lifestyle inflation.
- Long-Term Sustainability: While financial freedom may offer the allure of quick fixes and instant gratification, it’s often unsustainable in the long run. Achieving lasting financial wellness requires patience, discipline, and a commitment to lifelong learning. By investing in my financial education, cultivating healthy habits, and building strong support networks, I’m laying the groundwork for long-term success and stability.
The concept of financial wellness also helps me recognise that no two journeys with finances are ever the same. We all come from different upbringings, and most of us have experienced some form of trauma over living expenses. Addressing those traumas and preconceived notions about money is also part of the work. While financial freedom means the same end goal for everyone, financial well-being centres on individual experience. Shifting from a goal of financial freedom to financial wellness may allow us to discover our true financial comfort zones and thrive in such spaces – focused on what brings us peace and comfort.
Tips for Cultivating Financial Wellness:
- Create a Budget: Start by tracking your income and expenses to gain a clear understanding of your financial situation. Then, create a budget that aligns with your goals and values, allowing room for both necessities and discretionary spending.
- Build an Emergency Fund: Set aside a portion of your income in an emergency fund to cover unexpected expenses or financial setbacks. Aim to save enough to cover three to six months’ worth of living expenses.
- Invest in Yourself: Continuously invest in your personal and professional development to increase your earning potential and enhance your financial literacy. Take courses, attend workshops, and seek out mentors who can help you expand your skills and knowledge.
- Practice Gratitude: Cultivate a mindset of gratitude and abundance by focusing on what you have rather than what you lack. This shift in perspective can help reduce feelings of scarcity and increase your satisfaction with life.
- Seek Support: Don’t be afraid to seek support from financial advisors, mentors, or support groups. Surround yourself with people who share your values and can offer guidance and encouragement along your financial wellness journey.
In conclusion, while financial freedom may be an enticing goal, I’ve chosen to prioritise financial wellness as a more sustainable and holistic approach to achieving financial security. By focusing on well-being, resilience, mindful spending, and long-term sustainability, I’m cultivating a healthier relationship with money and paving the way for a more fulfilling future.
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