10th September is RUOK? day in Australia, a terrific wellbeing initiative that encourages us to check in with others.
I’m as passionate about prevention as I am about supportive ‘intervention’.
“Financial health and mental health are intrinsically linked.”Beyond Blue
Stressing about money impacts our mental wellbeing, which then can make it harder to stay on top of our money.
Financial wellbeing is also closely linked to the wellbeing of your romantic relationship, according to the Relationships Australia Relationships Indicator Survey.
As well as taking a moment to ask your mates and colleagues ‘RUOK?’, pause and reflect ‘how do I feel about my finances?’
What is financial wellbeing?
One prominent definition of financial wellbeing is:
“The extent to which someone is able to meet all their current commitments and needs comfortably, and has the financial resilience to maintain this in the future.”Kempson, Finney & Poppe, 2017
Four key elements of financial wellbeing highlighted by those researchers are:
- Day-to-day financial control
- Capacity to absorb a financial shock
- Enough to enjoy life
- On track for goals
Take a moment now and rate your financial wellbeing on each of those elements (Low, Okay, Good).
If you rated your wellbeing low
Contrary to popular belief, improving your financial wellbeing is not about earning more. It’s about making good decisions about how you use what you do earn.
If you rated yourself low, or you feel stressed about money then learning how to control your spending and saving will improve your financial and overall wellbeing.
That may be your best next investment to make.
If you rated your wellbeing as good
Then consider the blend of what you spend your money on. Without earning more you can perhaps get more joy from your money by spending on what has more meaning to you.