A new year and many people set goals even goals around money. It may be anything such as paying off a credit card, or making an important purchase or even really starting to take control of your finances.
An aspect of overall health and well-being is tied to financial well-being. It's important that Iowans understand financial well-being and why it impacts your overall health. We know that savings and income are a component of overall financial well-being, but there are other elements as identified by the Consumer Financial Protection Bureau that impact our overall financial well-being.
- Feeling in control: those who have high levels of financial well-being feel in control of their day-to-day and month-to-month finances. They are able to cover their expenses and pay their bills on time, and generally do not worry about having enough money to get by. This is more than having enough money, it's about being able to manage the money they have. It's having financial security.
- Capacity to absorb a financial shock: Whether you get in a car accident or are temporarily laid off from a job, there is a safety net. Those with high levels of financial well-being have savings, insurance, or family to help support them and provide financial security for the future.
- On track to meet goals: Consumers with higher sense of financial well-being also say they are on track to meet their financial goals. They are setting goals that are important to them and are able to work towards achieving those goals. Setting themselves up for financial freedom in the future.
- Flexibility to make choices: We all strive for flexibility to make choices in our lives. When there is financial freedom to make those choices, it allows one to enjoy life, whatever that means for that person. It may be taking a family vacation, going out to eat, working less to spend time with family, or whatever you decide is a priority for you and your family. In the end you are able to make that choice and have financial freedom in the present.
Do you feel like you have a high sense of financial well-being? If not, learn more about how you can improve your financial well-being by downloading the free Financial Empowerment Toolkit provided by Consumer Financial Protection Bureau. Make it a goal to have the freedom to live the life you desire today and in the future!