Financial Wellness - Part 1

While discussing financial wellness recently with Pam Campbell, Sales Director for Byron Park of Walnut Creek, my first thought about this concept was protection and preservation of wealth.  Considering the idea more fully over the past week, I see a rich depth to this concept that can be useful at any age or season of our lives.  It might actually come down to an idea heard recently at church  - - - “our job in this life is not so much about getting rich but more about being rich”.  

A business is considered sound financially when the inflow exceeds the outflow by an amount that can be expected to continue growing over time.  A Chief Financial Officer is often employed to help a business plan future income and control expenses in order to achieve a financially sound business.

 

An individual’s financial health is more often looked at in the negative.  We see areas that indicate imbalance or fear for future financial stability: a pending bankruptcy or losing wealth due to poor decisions or fraud. 

 

A recent study by the American Psychological Association found that “money” was named as the top stressor by 75% of the respondents. Not surprisingly, another poll by Associated Press/AOL found a high correlation between high debt levels and health problems such as heart attacks, headaches, ulcers, and depression.  So, while there is a pretty clear measure of financial un-wellness, there is less agreement about what constitutes financial wellness. 

 

By the way, the above study about stressors found similar result across all age groups EXCEPT those over 65, who reported lower levels of stress. Possibly this age group grasps the idea of financial wellness better than the rest of us.

What is Financial Wellness?  Is it the same as financial independence or fiscal capacity?  I would argue that financial wellness is not about the amount of wealth we have accumulated but more about knowing what we are capable of handling at each stage of life and having the wisdom to ask for help appropriate to our needs at each stage.

A good example of this in the business world is an entrepreneur who has the wisdom to bring in managers whose skills complement and supplement what the entrepreneur can offer.

Why do you think those surveyed over the age of 65 have less stress about money? Could it be they have learned to live within their means; or, they have learned the secret of a generous mindset; or, they have learned to appreciate and value what life offers over what money can buy – love, peace, joy and hope? These mental attitudes allow us to see a bigger picture of the value of human life which  can help us be rich at any level of monetary wealth.

 

If you are curious about this topic and would like information about the community event at Byron Park in Walnut Creek, please contact Pam Campbell for details. 
 

You can also receive an alert when the next installment of this blog on "Financial Wellness - Part 2" is posted by entering your email address above.  What do you think about Financial Wellness?  Be rich and share your thoughts.