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Make a Positive Change Towards Better Financial Wellbeing

December 10, 2017 Useful Articles

If you are worried about your finances, you are not alone. Financial stress can affect your health, so it is important to take an active role in understanding, planning and seeking support for your financial wellbeing.

Financial wellbeing is one of the 9 dimensions of your personal wellbeing:

  • Financial
  • Emotional
  • Physical
  • Social
  • Intellectual
  • Spiritual
  • Creative
  • Environment
  • Career

What does financial wellbeing really mean?

Financial wellbeing is a state of being where “a person can fully meet their current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life”.

Fundamentals of Financial Wellbeing

Security: Control over your day-to-day, month-to-month finances so there is capacity to absorb a financial shock in the future.

Freedom of choice: Use your financial freedom to make choices to enjoy life today and stay on track to meet your financial goals tomorrow.

Set financial goals

Setting financial goals puts you in charge of your money and your life. Your goals can be for the short or long term, small or large, but they all need to be achievable.

Here are some ways to improve financial wellness:

Discover your values, goals and concerns.

Analyze your situation, approach and accounts.

Explore best options and strategic solutions.

Design a coordinated and comprehensive financial plan.

Implement income ideas, investment and insurance opportunities.

Enablers to reach your financial goals

  • If you are starting to pursue financial goals that are more ambitious than what you’ve achieved previously, picture what your life will be like after you achieve the goal to help keep you motivated. Put your list of long-term goals in a place where you can see them every day.
  • Sometimes an appropriate photo illustrating your goal can be an effective motivator as well. Knowing what you are working toward will help provide additional purpose to your life.
  • Even the most disciplined of us can use a little outside support from time to time. It might help you to let some of your friends or family know what your goals are so that they can help keep you motivated as well. Remember, though, that your goals are ultimately only your own, and not everyone may agree with your choices.

Don’t be discouraged if the amount is overwhelming. The important thing is to have a set of tangible financial goals to work toward.

Steps to consider for building financial wellbeing

  • Spend less than you earn
  • Save for emergencies
  • Take sufficient insurance coverage
  • Save for out of pocket health expenses
  • Plan sufficient income for retirement

Credits: Metlife UAE