Do you find yourself worrying about your finances? If so, you are not alone. According to many studies the top stressor among adults is financial stress. Contrary to popular belief, stress is not necessarily connected to wealth levels. Many high-net-worth households struggle with debt, worry about job security, stress about stock market and economic uncertainty, or do not feel in control of their finances despite their fortunate financial means.
Traditional measures such as income or net worth, while important, do not necessarily or fully express a person’s financial situation.
According to the Consumer Financial Protection Bureau, people who have a healthy financial situation tend to possess the following characteristics:
• Have control over day-to-day financial decisions
• Have the capacity to absorb a financial shock
• Are on track to meet their financial goals
• Have the financial freedom to make the choices that allow them to enjoy life
How do you achieve healthy financial well-being? The first step is to figure out what you can do immediately to feel like you are taking control of your finances. Reviewing your expenditures and setting a budget may seem boring, but it is a good way to better understand your behaviors and improve your financial decision-making.
Once you have control of the day-to-day financial matters, you can begin to consider future goals, such as saving for retirement and the kids’ college. There are many products and services available to help you save and invest for your future. With the vast amount of information available today it is important to determine the quality of data and advice you receive from others. Always take the steps to review the available options before jumping into products or services.
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