What is Financial Wellness?
Financial wellness is very subjective and may be described differently by each individual. However, the very basic aspects are centered on understanding your financial situation and being able to take the necessary actions to make improvements so you are prepared if financial changes occur in the future. Definitions of financial wellness will change as needs and desires change through various life stages. Financial wellness may include concepts like being prepared for the unexpected with an emergency fund, participating in a savings plan that deposits funds directly from your paycheck (AKA “Pay Yourself First”) and budgeting to live within your means.
Why Is Financial Wellness Important?
Financial wellness is as important as physical wellness for several reasons. Persistent financial worries are major causes of chronic stress. As reported in The Journal of the American Medical Association*, long-term exposure to stress can lead to serious health problems such as heart disease, digestive disorders, depression, autoimmune disease, and difficulty sleeping. Worries about finances can distract you and cause accidents at home, at work, and while driving. Chronic stress diminishes energy levels, which negatively impacts quality of life.
How Can I Improve My Financial Well-being?
Some actions that you can take to improve your financial wellness are to: comparison shop for financial services, eliminate or reduce banking costs, save a portion of each paycheck, and prepare for the unexpected. By simplifying your financial life, keeping track of spending, setting short-term and long-term financial goals, protecting yourself against fraud, and building a good credit record, you are taking the important steps to achieve and maintain financial wellness. It is important to review your credit report periodically to ensure all information is up to date and accurate.
Free Financial Resources
Your employer is providing a free resource to assist employees in achieving, maintaining, and strengthening financial wellness through Utilities Employees Credit Union. UECU is a free employee benefit and we are excited to be part of your financial wellness journey! Monthly, UECU will prepare an educational article on a topic that will contribute to your success in reaching your financial goals. The next educational topic will pertain to Credit Scores, also referred to as a Beacon score or FICO score.
*Cohen, S. et al. Psychological Stress and Disease. Journal of the American Medical Association. 2007; 298(14):1685.
This Credit Union is federally insured by the National Credit Union Administration. Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.