January is Financial Wellness Awareness month—serving as a reminder to prioritize our financial well-being and to make informed financial decisions. Observed each year right after the hustle and bustle of the holiday season, Financial Wellness Awareness month helps us slow down, stop, think and prepare our finances for the new year.
Financial wellness is about managing your financial life—starting with your bank balances and expanding into how you strategize your finances. As you prepare for a new year of saving and spending, you should be thinking about how much income you’re generating and how that income will be distributed across day-to-day finances, unexpected expenses and savings for short-and-long-term goals.
The new year is the perfect time to refresh and reset, and it’s important to think ahead so you can set financial goals and take the steps needed to achieve financial freedom. However, financial wellness goes well beyond the practices of money habits, and is also a comprehensive, multidimensional concept that covers your behaviors and relationship with money.
Financial problems can be the source of unfavorable emotions such as anxiety and fear, causing emotional and mental strain. Addressing your financial issues is the first step to creating a healthy relationship with money, leading to overall financial wellness. Achieving financial health starts with understanding the importance of saving, erasing and controlling debt, sticking to a budget and spending responsibility. No matter your stage in life, having a healthy attitude and understanding about money allows you to make smart decisions to better prepare for your future.
Try these tips to help achieve financial stability:
- Create a financial plan outlining your earnings, savings goals and monthly expenses.
- Create a budget that allows you to live within your means to reduce overspending and prevent debt from accumulating.
- Review your bill payments and credit reports each month to remain knowledgeable about your creditworthiness and spending, ensuring that your budget is achievable, and goals are being met.
Financial Wellness Month is observed to prevent individuals from improperly managing money, and to encourage responsibility for financial relationships. Take the initiative this January to create a plan for your 2025 finances, so that your future financial situation is secure without the hardships faced by improper saving and spending. You should feel confident about your financial decisions!