What Is Financial Wellbeing?

When it comes to financial well-being, there are two key things to consider. Firstly, it's about feeling secure now and in the future. Secondly, it's about understanding what makes us happy and having financial goals in place to achieve that happiness. It's not just about your current financial position, it's also about your long-term ability to be financially well.

Everyone's financial situation is different, so your journey to financial well-being will be unique to you. That means taking a personalised approach, based on your income, outgoings, family situation, lifestyle, and financial goals.

If you're struggling to navigate your finances alone, professional advice can be invaluable. At The Kindred Collective, we can help you obtain a copy of your credit report and highlight areas for you to consider so that you are better prepared for those next steps. By taking care of the details for you, we can reduce your stress levels and guide you through any changes or challenges that come your way.

To achieve financial well-being, it's useful to think of building blocks that can help you get there. We've broken these down into five money building blocks and five mindset building blocks. Here they are:

Money Building Blocks:

· Income

· Emergency fund

· Manageable debt

· Long-term savings

· Valuables that make us feel secure e.g. property

Mindset Building Blocks:

· Knowing what makes us happy

· Visualisation of our future self

· Smart social comparisons

· A long-term plan

· Resilience

To evaluate your current level of financial well-being, you can score up to 10 points for each of the blocks, with a maximum of 100 points available. The goal is to score well across both the money and mindset blocks so that you become an 'all-rounder' with optimal financial well-being.

If you're interested in learning more about financial well-being and how you can improve yours, get in touch with The Kindred Collective today.