9 Ways To Achieve Financial Wellness

January is Financial Wellness Month. Financial Wellness is the overall financial status or state of an individual that involves a combination of the mental and physical aspects of money. Financial wellness is based on a strong financial mindset that determine an individual’s thoughts, actions, behaviors and attitudes regarding money.

Financial wellness involves understanding your financial situation and having the desire, skills and knowledge to adequately handle risks and changes to your financial situation. Financial wellness involves knowing how much money you earn, spend and owe at any given time and developing a plan for the future. Financial wellness can also be called financial security, financial freedom, financial independence or financial stability.

Financial wellness ensures that you don’t have to stress or worry about your finances and involves developing a financial plan on your own or by hiring a financial expert that will help you to achieve your financial goals and consistently live within your means. Financial wellness means having a consistent cash flow to pay for all of your needs and wants and being able to achieve the dreams and lifestyle your desire in a balance manner.

According to the Federal Reserve, 43% of Americans live above their means. Many Americans live paycheck to paycheck and are living in either low- or middle-income households – some just one paycheck away from being homeless. If they lose their jobs, they have no backup plan, no savings and no safety net to help them through a financial crisis.

Many school systems do not teach financial literacy. These statistics show the importance of financial wellness in America. To successfully navigate through life Americans must make the right financial decisions that will affect their future and their future generations. Here are 9 effective ways to achieve financial wellness.

CHANGE Mindset

Change your mindset. You have to change your thinking regarding finances. It takes 23 days to start a habit and make a new action part of your daily life. If you want a different financial outcome, you have to make a permanent change regarding your finances.

Avoid YOLO and FOMO

Think about your future today, every action you take today affects your financial future so plan ahead and develop contingency plans.

Organize

Get your finances organized – file, categorize, prioritize, and automate your finances.

Use tools

Use tools to help you such as online banking, alerts, software, webinars, teleseminars, TV shows, seminars, classes, or radio shows.

Use apps

Use apps such as Mint or Mint Bill, Build Guard, Yodlee, You Need a Budget, Expensify or Toshl to manage your finances.

DIY

Read self-help books on personal finance that discuss budgeting, investing, retirement, saving, and taxes. Read articles on websites such as CNN Money, Yahoo Finance, Bankrate.com, MSN Money and morningstar.com. The more you know the more you grow. Money can generate wealth or generate debt, you make the choice.

CONDUCT Estate planning

Hire an estate lawyer to setup a will, trust and advanced medical directive.

PREPARE Taxes

Hire a CPA to prepare your taxes (personal and business) to minimize tax liabilities.

CREATE A Financial plan

Hire a financial planner, financial advisor or financial coach to help you map out a financial roadmap and plan for retirement.