What’s the difference between being wealthy and financial wellbeing?
Financial wellbeing is not the same as being wealthy or being perceived as wealthy. Wealth is typically measured by how much money someone has and the assets they own, such as property or shares. The reality though, is clients can have these things and still lack financial wellbeing, as it depends on how they manage their money.
Rather than just a tally of wealth, financial wellbeing should be viewed as:
- Being able to keep up with any debt repayments, living costs and other financial obligations.
- Having some savings and being able to cope with any unexpected expenses.
- Being free from financial stress.
- Having the financial freedom to live an enjoyable lifestyle.
- Feeling secure and in control of finances – now, in the future, and if life takes an unexpected turn.
The easiest way of working towards financial wellbeing is to create a plan, a road map to achieving this, and the sooner you start, the better the outcome can be.