Financial well-being is of utmost importance for an individual in terms of achieving all financial aspirations of life.
“ Pursuing your passion is fulfilling and leads to financial freedom.” By Robert Allen
Financial well-being is a state where a person can fully meet current and ongoing financial obligations, can feel secure in their financial future and is able to make choices.
Key Objectives:-
Control over finances
Capacity to absorb a financial setback
Attainment of financial goals
Flexibility to make choices with money
Financial well-being focuses on four principles:-
Savings, Spendings, Borrowings and Planning.
The major factor that helps your financial wellness is individual financial knowledge and his attitude towards money.
For this it is important to throw light on Financial Behavior which is a crucial aspect of an individual’s life. It refers to the way a person manages their money, makes financial decisions and deals with financial issues. There are several factors that influence an individual’s financial behavior. It includes upbringing, culture, personality, education, income level and personal experiences.
Some major aspects of financial behavior are:- Budgeting, Saving, Debt Management, Investment and Impulse spending.
Here, Financial Literacy plays an important role to regulate Financial Behavior and enhance Financial well-being. Financial literacy includes personal Financial Management, Budgeting and investing. A strong foundation of Financial literacy supports good education, retirement financial plans, debt responsibility, managing household finance, business and trade practices etc. Financial literacy has an impact over Economic health.
“ If you are saving, you are succeeding” By Steve Burkholder
Therefore, individuals should practice self- control and discipline when it comes to spending and make conscious decisions that align with their financial goals.