The second of the 8 dimensions of wellbeing is financial.
We are covering this one right after occupational wellbeing because of the close link.
Our finances are central to the life we lead.
From where we live, to what we do for entertainment, our finances drive many decisions.
Dimensions of Financial Wellbeing
Last year, the financial wellbeing post covered five dimensions of financial wellbeing:
Vision & Planning. Considering what our financial goals are and set plans to get there.
Budgeting & Tracking. Understanding in detail where our money is going each month.
Income & Investments. Where all your money comes from and ensure it’s diversified.
Spending & Debt Management. What we choose to spend money on and how debt is handled.
Education. Continuing to advance our knowledge in financial management.
Over the last year, with the instability of the job market, I see even more importance here.
Understanding things like our “financial floor” and where our liquid assets reside is key.
Being prepared for financial storms can ease panic with a loss of income or unexpected expenses.
2024 Reflection Questions
As you reflect on 2024, here are some questions to consider:
- Three words I would use to describe my financial situation this year are:
- When I consider my overall spending this year, what am I proud of?
- If I could go back in time, what were 2-3 things I purchased that I would pass by?
- Did I review my ongoing expenses – insurance, internet, subscriptions, and cell phones?
- Have I taken any steps to diversify my income and create liquid assets?
- Was I able to pay down debt and improve my credit score?
- Did I focus on creating a rainy-day fund?
- What steps did I take to continue to educate myself on money management?