What is Financial Wellness?

Jessie J once sang, “It’s not about the money, money, money!” — but, sometimes, it is.

As we grow older and find our own paths, away from the wings of our parents, we get to encounter things that might be new to us. What are bills and how do we even pay for them? What are credit cards? Insurance? Savings? There’s so much to keep track of!

In the world of #Adulting, things might seem harder than they actually are. Things can get pretty overwhelming as a young adult or a young professional.  So, we’re here to help you take a step back, sort things out, and walk you through the ins and outs of the thing called “Financial Wellness.”

What Financial Wellness Means

In a nutshell, Financial Wellness refers to how a person, a family, or a household manage their finances — either as a group or, in our case, individually. To put things into perspective, when we’re talking about finances, the two fundamental things that should be taken into account here are the “inflow” and the “outflow.” Inflow essentially means where and how much money is coming in. Outflow is its opposite and refers to where and how much money is coming out.

As a young adult or young professional, your inflow can either come from your allowance, side hustles, freelance work, or your salary from your job. The amount of money you receive would greatly differ depending on where you get it from (i.e., your monthly allowance from your parents would usually be smaller than your salary from your full-time job) and how you get it (i.e., a full-time job would almost always give you higher pay than a part-time job).

Meanwhile, your outflow would depend on your living situation: are you living with your parents or are you already living independently? If you’re living with your parents, your outflow would usually be more of your “wants” from online shopping, food cravings, or even personal expenses such as mobile phone bills, transportation, and clothing. But, when you start living on your own, your outflow would usually be much more about your “needs” such as rent, water and electricity bills, groceries, and data or internet plans.

The key here is knowing both your inflow and outflow AND balancing them. Having a high inflow and a low outflow could mean you’re being too restrictive and you’re not getting your needs. While having a low inflow and a higher outflow, on the other hand, could mean you’re spending way more than what you can afford. Managing your money to balance both is the way to go! 

Why Managing Your Money is Beneficial

Understanding the basics of financial wellness is one thing and seeing its benefits is another.

When you have any amount of money, making sure that you do not spend more than you have or earn will help you avoid incurring debt and even urge you to save. If we are to be 100% real about things, having debt can lead to mental health issues such as the constant feeling of anxiety as it will be a burden that you would always be thinking of. Managing your finances has benefits that don’t only affect you now, but can also help you in the long run.

Speaking of burdens, one of the other benefits that managing your money well can give you is the peace of mind during unexpected times. During our lifetime, accidents and emergencies are inevitable and having some savings or even an insurance can help you deal with immediate costs simply because you were able to manage your money.

I know, it’s sooo tempting to giving into those #Budols during payday sales. But, managing your finances means understanding when it’s the right time to spend or to save for your needs. 

How You can Feel Good About Financial Matters

Although, when it comes to your wants and needs, feeling bad should be the last thing you’d experience! For every peso that you spend or save, you should feel confident that you did the right thing. So, as a quick guide, here are some tips to help you feel good about your finances:

1. Talk about it

Whether with your parents, your friends, or with a financial advisor, talking about money should not be a taboo topic. Openly talking about finances can help you develop a better strategy simply by learning how others are dealing with their money and see whether you can do it, too.

2. Give yourself some wiggle room

When creating a budget plan, never forget to give yourself some room for your “wants.” This would help you enjoy the fruits of your labor without affecting your spending for your essential needs. Treating or rewarding yourself from time to time is not bad and can even motivate you to be better at budgeting.

3. Have patience

As young adults or young professionals, we would often run into things that we do not know or understand — and that is totally okay! Give yourself some grace to be a rookie and make every opportunity a chance to learn and be better at managing your finances. The moment you stop beating yourself up and allowing yourself to learn is the moment you see how things are much, much easier!

Financial Wellness is something that we would all be doing for the rest of our lives. And now is the best time to take charge of our financial wellbeing. Though that may sound daunting, it is nothing to be afraid of. We all can learn how to better manage our finances as our needs and wants become clearer to us and/or change over time. The important thing now is that you’ve taken the first step towards Financial Wellness and you don’t stop moving forward, even if that means taking baby steps!

You can also get a chance to win P2,000 Giftaway eGCs courtesy of Sun Life PH until November 15, 2022! Simply complete the FinLit is Life Quest, and enter the promo here: https://sunlife.co/finlitquest

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