Hey, I'm Lily, financial advisor at ACME. In this short video, I’ll help you understand what financial well-being is and how it can improve your life.
Financial wellbeing is the state of having control over your financial situation and making mindful decisions about your money. It has many benefits, such as reduced stress and anxiety, improved physical and mental health, better relationships, increased productivity, more opportunities for growth, and overall quality of life.
Imagine you have just received a bonus from work and you're not sure what to do with it. With knowledge of financial wellbeing, you would be able to make a plan for how to use that money to improve your financial situation, such as saving it for a rainy day or investing it in something that will generate passive income.
There are three key concepts to understand when it comes to financial wellbeing: budgeting, saving, and investing. Budgeting is the process of creating a plan for how you will spend and save your money. Saving is putting money aside for future expenses or emergencies. Investing is using your money to generate income or grow your wealth.
To put what you've learned into practice, start by creating a budget that works for you. Be realistic about your income and expenses, and make sure to allocate some money for savings and investing. By doing this, you will be able to take control of your financial situation and make decisions that will benefit you in the long run.