Anyone who’s ever struggled financially knows how worry can eat away at your confidence and productivity. Shifting your focus to positive financial outcomes and understanding how to achieve them isn’t easy. But you can resolve to improve your financial wellness.
What is financial wellness? It means that your day-to-day financial systems work well for you. You have a budget to ensure you can pay your bills, feed and clothe your family, get to work, and meet other needs. You’re becoming resilient because you’re saving for a rainy day and developing a credit history. As your financial health improves, your opportunities can expand.
According to the Center for Financial Services Innovation, there are four components of financial health: Spend, Save, Borrow, and Plan. What you do today to manage your spending, saving, borrowing, and planning can either help or hurt your ability to deal with future surprises and opportunities.
For each component, CFSI has identified two indicators of financial health. Learn more about each indicator in the graphic below.