There are people who earn six-figure incomes but still struggle financially and the answer is simple, they do not know how to manage their financial resources.
To prove that point a study has revealed, almost half of every household in major American cities live in a state of financial insecurity which is evident through the lack of saving money for emergencies or their futures.
The US Census Bureau has reported that spending habits of Americans have changed dramatically over the years and spend most of their earnings on transportation, food, and housing. All of these are mainly because of poor financial awareness.
So what is financial wellness? Simply stated, it is the state of freedom from stress and pressures of debt and capable of maintaining a disposable resource at any given time. This means that you pass your overall financial health assessment.
Being able to save money
It takes willpower and the right attitude to save money, which is a long-term solution to your current financial situation. You know that you can start saving money no matter how small it is at first because you know that it will eventually grow.
You continue on and later find that the more time you spend saving money, the more money you save in the long term. This is the result of time and growth on money saved, no matter how much you set aside.
Has a budget
You know how to deal with financial stress because you understand the need to work within your means. You focus on your needs instead of what you want. You are practical and judicious with your spending habits.
You stick to your budget and you do not go over it.
You are the master of your finances. You do not let money control you rather you are in control of the money that is in your hands. You set aside your desires so that you can hold your cash at bay and spend it for something else that you have allocated it for.
Manageable credit profile
You carefully consider your options before taking out any credit or loan. It’s ot because you are stingy, but because you are practical and smart.
Good credit score
You have an excellent credit score. That’s because you know how to make your credit payments on time. You do not neglect your obligations and you think carefully before taking out any credit.