Gifts + Estate Planning Lifestyle + Wellness

Achieving Financial Wellness Explained + Tips to Help You Improve Your Financial Wellness

BY Spectrum Wealth Management | Jun 30, 2021

Health, wellness, and wealth have a deep connection.  To lead a full life, you have to invest time in all aspects of your life, including your finances.  To achieve financial wellness, we must be able to understand what it is.  Here’s a brief explanation of the different dimensions of wellness and a few tips to help you improve your overall financial picture.

Wellness is more than being free from physical or mental illness. It’s a dynamic process of change and growth.  Most people think of health and wellness regarding the physical aspect, but there are actually seven different areas that require balance to achieve overall wellness.  Finding a balance between the different areas of wellness can help you lead a more fulfilling life.

Physical – This involves your overall health and fitness.  It includes focusing on nutrition, physical activity, and other activities that can boost your health.

Emotional – Emotional wellness coincides with being able to acknowledge and healthily express your feelings.

Intellectual – Keeping your mind open and active by continuously learning and using critical thinking skills to stay sharp.

Social – Social wellness aims to build and nurture healthy personal relationships with friends and family by prioritizing the relationships that add value to your life.

Spiritual – Regardless of religious affiliations, building spiritual wellness ultimately boils down to finding your purpose in life.

Environmental – Knowing that you have an impact on the planet and your immediate surroundings.  Doing things like recycling and reducing your overall consumption can help you achieve general feelings of environmental wellness.

Occupational – This ties into finding purpose in a career where you feel your skills are valued.  Consistent development of your work-related skills and having a healthy work/life balance can help you achieve a greater sense of occupational wellness.

How do I achieve financial wellness?

Feeling financially well is easier said than done.  A recent study from Fidelity found that approximately 60 percent of Americans are concerned about their finances, and 43 percent of people say their stress and anxiety levels related to finances have worsened.1

Financial Planning

Financial planning is critical when it comes to achieving financial wellness — you need a plan in place to make the most of your money, manage it, and put it to use.

Tip #1 Knowing your financial position

To feel confident about your finances, you need to understand your financial position and what you have.  This means doing an inventory of sorts on your finances — collect and record information such as:

Income and Expenses – How much do you earn each month?  How much do you spend each month?

Priorities – What is most important to you when it comes to money?  Make a list of your priorities, what you need in order to achieve your financial goals and an estimated timeframe in which it will take you to achieve those goals.

Saving and Investing – Are you currently investing?  Do your current investments align with your investment needs?  It may be good to consider discussing your assets with a professional to ensure you’re on the right track.

Work-Optional Lifestyle Planning – We all want to retire.  Are you currently making contributions to available retirement plan programs (401(k), 403(b), IRA, Roth, SEP, etc.)?  Do you know how much retirement income you expect to have?  Have you thought about what kind of financial position you’d like to be in once you can transition into a work-optional lifestyle?  These are all essential factors to consider when discussing your wants and needs later in life with a financial planner.

Life Insurance – Do you currently have a life insurance policy?  Do you have adequate coverage?  What about an emergency fund?  These are things you should review to ensure you and your loved ones are protected if something happens to you.

Legacy Planning –  A financial planning professional can be invaluable in understanding the complexities of estate and legacy planning.  Do you have a will?  Have you established your estate goals — supporting your family, charitable giving, etc.?  Make sure you have beneficiaries, that your loved ones understand your wishes, and have a plan in place for your legacy plan.

Tip #2 Get Comfortable When It Comes To Talking About Money

Having healthy conversations about money is vital when it comes to financial wellness.  Once you have a better picture of where you stand financially, you’ll be able to make smart financial decisions confidently.  The first step to improving your financial position is discussing what you have, what you need, and establishing an action plan.

Tip #3 Set Goals

Connect your finances to purpose. Assess your goals, make an action plan, and move forward. Once you know what your financial goals are, you are one step closer to achieving them.

Tip #4 Create A Savings Strategy

It’s more than just saving money in a bank account.  If you have a strategy that connects different life goals, it can give you a sense of direction to save money.  Seeing progress from saving and investing can also serve as motivation to keep you on track to achieve the most important goals.

Tip #5 Plan For The Things That Will Eventually Happen

Some things are in our control, while others aren’t.  Unexpected things happen, and eventually, we all pass away.  Regardless of when these things happen, knowing this can help you get in the right mindset to protect your finances.  Make a plan that includes having financial “safety nets” in place to protect you and your loved ones during times of uncertainty.

Tip #6 Work With A Professional Financial Planner

Getting professional planning and guidance allows you to have peace of mind and live life by design, knowing you have the means to do so and a plan in place for whatever comes your way. 

Wellness is an ongoing, ever-changing process that requires work.  Spectrum Management Group is a team of creative problem solvers with broad expertise in comprehensive wealth management. 

Our team of CPAs (Certified Public Accountant), CFAs®(Chartered Financial Analyst), CFP® (Certified Financial Planner), CMT® (Chartered Market Technician), CDFA(Certified Divorce Financial Analyst), AIF® (Accredited Investment Fiduciary), and CPWA® (Certified Private Wealth Advisor) brings innovative solutions to your complex financial situation.  As a result, we can help simplify your financial life, help you establish goals, address financial concerns, and build a roadmap to achieve your financial goals. 

Ready to start planning?  Contact us for more information.


This content is developed from sources believed to be providing accurate information, and provided by Spectrum Management Group. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.