What is Financial Health?

• Ability to manage expenses.
• Being prepared for any financial shocks while also having the ability to recover from financial setbacks.
• Having minimal debt.
• Being able to save and build wealth.

Our financial health can be a major life stressor as well as having a great impact on our mental well-being. While being mindful and practicing good behaviors such as monitoring your financial status and creating a conscious spending plan based on your values and lifestyle, you can keep mental and financial stress at bay and work towards your goals.

The Importance of Financial Health

One area that should not be overlooked when thinking of our well-being is our financial health and how prepared we are to meet different financial needs. Health has a variety of definitions and meanings but is mainly recognized as a state of complete physical, mental, and social well-being. A person is said to be healthy when they are free of any disease or infection, are mentally happy and healthy, and have healthy social relationships in society.

How to Make the Most of Your Finances

When it comes to our finances and money, we must think of how we budget, spend, save, and invest. Also, be mindful of your debt and how it can be paid off. There are many ways one can manage their financial health:

• Create a budget: Many of those dealing with financial stress may have trouble with budgeting; they may not feel in control of their money and spend impulsively. Having a budget in place is a great first step to start having healthy money habits.
• Track where and how you spend: This can be helpful in not overspending and knowing the areas in which your money is going.
• Save! Save! Save! Many people who do not have money in savings may stress or worry about their financial situation. Some ways one can put money away for the future include a 401k plan, a 403b plan, Individual Retirement Accounts (IRA’s), savings accounts, and money markets.
• Having Good Credit Habits: Working to improve your credit score can help set up a brighter financial future. Paying bills on time, watching your credit limit, establishing credit history, and understanding your credit score are helpful in your financial and credit health.
• Support Resources: Be aware of additional support through Financial Advisors, free resources such as an Employee Assistance Program (EAP), online tools, and apps.

Click here to read more in the latest issue of Highmark’s Plan for Health Newsletter.