What is real financial wellness?
What is Real Financial Wellness?
A few months ago, I decided to take a short sabbatical. It wasn’t a grand plan or something I carefully thought through. I was feeling burned out and directionless, especially when it came to writing this weekly blog and email newsletter. As much as I had enjoyed it in the past, it had started to feel like something I should do rather than something I wanted to do. So, I stepped back to see how I’d feel after a break.
That break showed me a few things. First, I truly enjoy writing. I missed it—the process, the connection with you, and how it forces me to think deeply about money and articulate those thoughts clearly. Another realization was that financial wellness is a much bigger topic than I initially thought. And perhaps, as a society, we’re not fully understanding what it really means.
As a way to reintroduce this weekly blog, I want to start by exploring the true meaning of financial wellness. Is it just about having a growing savings account or living debt-free? Is it about increasing our net worth or maximizing earnings? Or is there more to it?
Redefining Financial Wellness
When we think of being “good with money,” we often focus on the numbers: positive net worth, low debt, investments, and savings. But we rarely consider our deeper relationship with money. We tend to either stress about it, avoiding it altogether, or obsess over it, allowing the pursuit of it to control our lives. Our relationship with money falls somewhere on this spectrum.
In my view, financial wellness goes beyond just the numbers. We need to consider both our financial health and our relationship with money in the context of our entire lives. It’s not just about how we spend, save, and give—it’s also about how we earn. Are we earning in ways that bring us joy? Do we enjoy the work we do?
And when we use money, are we spending it on things that truly provide comfort, joy, or meaningful experiences? Are we saving and investing with purpose, for emergencies, for bigger purchases, or for retirement? Are we giving to the causes and people we care about? And most importantly, are we clear on why we’re doing all of this and not just checking the should boxes?
During my sabbatical, I made a commitment not to work on growing my business—not to focus on earning. And an interesting thing happened: I immediately began questioning myself. Who am I without work? Who am I without earning money? I realized just how much my identity had been tied to those things.
Even though, by traditional standards, we were financially doing just fine, this period made me understand that financial wellness is about much more than numbers on a page. If I had such a strained relationship with myself when I wasn’t earning, that was a sign that I still had work to do on my own financial wellness journey. It made me realize we all may need to zoom out and examine our relationship with money, beyond just the metrics.
Components of Real Financial Wellness
Traditionally, financial health has been defined through numbers—savings, investments, debt, and net worth. While these figures can help paint part of the picture, they’re not the full story. True financial wellness involves deliberately aligning money with your values, understanding your beliefs around money, creating freedom, and feeling in control of your choices.
The key components of real financial wellness include:
Emotional Well-being: Managing your money should bring you peace of mind, not stress. Financial wellness doesn’t mean everything is perfect, but that you have a plan and confidence in your ability to handle bills and unexpected expenses without panic.
Clarity and Control: You should have a clear understanding of how money flows in and out of your life. Financial wellness means knowing your bigger financial picture—what the numbers mean, which ones are most important, and how your choices impact your goals.
Value-Driven Spending: When you spend money, it should align with your values. If you ever feel regret about a purchase, financial wellness allows you to step back, reflect, and make more aligned choices in the future.
Freedom and Choice: Financial wellness isn’t about accumulating wealth or belongings. It’s about creating the freedom to make empowered choices—whether that means choosing the work you love, prioritizing time with family, or pursuing personal passions. Freedom extends to our beliefs about money.
How to Assess Your Financial Wellness
Signs of true financial wellness include:
Do you feel in control of your finances?
Are you comfortable reviewing your spending?
Does money reflect who you are and what you value?
Do you live a comfortable life, aligned with your goals?
Are you making intentional spending decisions that reflect your priorities?
Do you experience peace of mind regarding your financial situation?
Can you adapt to financial challenges without overwhelming stress?
Remember, financial wellness is a journey. It’s normal to have areas where you need to grow, and it’s a process of continual improvement.
Steps to Achieve Real Financial Wellness
If you’re looking to improve your financial wellness, here are a few steps to help you get started:
Get Clear on Your Values: Take time to reflect on your core values. Ask yourself whether your spending and earning aligns with these values. Are your money habits bringing you closer to the life you truly want?
Create a Spending Plan that Honors Your Priorities: Start by tracking your expenses and categorizing them based on what’s truly important to you. This allows you to focus on what matters and cut out spending that doesn’t align with your goals.
Find Balance Between Enjoying Life and Financial Security: It’s important to enjoy the present while also planning for the future. Real financial wellness is about finding a balance between the two, so you can live both for today and tomorrow.
Real financial wellness isn’t about perfection or hitting some magical financial milestone. It’s about creating a financial life that supports your best life—one that aligns with your values, brings you peace of mind, and allows you the freedom to make intentional choices.
Take a moment today to reflect on your own financial wellness. Are there areas where you feel stuck or misaligned? Consider tracking your spending or having a conversation with your partner about financial goals. One small step can make a big difference in aligning your money with the life you truly want to live.