Many people have the goal of achieving financial wellness—but in reality, it’s almost impossible to know everything there is to know about finances, much less live your life according to a strict list of money principles. But you know what? That’s okay! Financial wellness is a journey, not a destination. Here’s how to make the most of the ride.
Financial education is critical to financial wellness, yet many people never receive this education. Don’t be embarrassed if you’re one of the many, many Americans who don’t feel confident about their financial knowledge! Remember: there’s no destination when it comes to financial wellness. Everyone has more to learn. With a growth mindset, you might join a virtual workshop, speak with a financial counselor, or keep up with various financial topics through the Harvard FCU blog.
Different life stages demand different financial knowledge and strategies. Because financial wellness looks so distinct at every age and stage, it’s critical to change with the times. Young adults may want to work on building credit and understanding their loan repayment schedule, while older adults may be focused on household budgeting and saving for a home. People nearing the end of their career might naturally be more interested in estate and retirement planning.
Some financial wellness resources may convey the idea that there’s one right way to do things—but in reality, financial wellness is unique to every person. Throughout your journey, there’s a good chance you’ll need to experience to find the strategy that works for you. In budgeting, some people prefer zero-based budgeting while others benefit from the 50-30-20 method. In terms of debt repayment, there are options: from the snowball method, to the avalanche method, to refinancing and beyond.
Because there’s no single destination in the financial wellness journey, it’s critical to celebrate the wins when they come along. Find those glass-half-full moments—like building a monthly budget and sticking to it; or saving more money than last month; or paying a credit card bill on time. Taking a moment to recognize your progress and commemorate your successes will offer even more motivation to keep striving.
At the same time, you don’t want to ignore the obstacles and challenges which threaten to derail your financial wellness journey. A few common challenges include holding onto high-interest debt; missing credit card or loan payments; spending without a household budget; and not planning for the future by saving or investing funds. To keep yourself accountable, consider listing out your financial challenges to see where improvements, however small, can be made.