Written by: Whitney Queen, President
Some may tell you that there is only one financial wellness definition. The truth is that the definition varies from one person to another. At Mentoro, our financial mentors generally refer to financial wellness as “the meaningful approach to the handling and understanding of your money.” As you can imagine, that means something a little different to each organization or individual. Rather than just leaving you with a vague definition of financial wellness, let’s get into some of the most important aspects of financial wellness to uncover its deeper meaning.
What Does Financial Wellness Mean?
When asked, you’ll find every financial professional, business owner, or employee will tell you that financial wellness means something uniquely different to each of them. Thus, financial wellness is inherently subjective. In some cases, a person can quite literally say “I am not in good financial health,” which reflects a crisis that needs financial triage. In other words, people experiencing dire financial health need help to change their behavior.
For most people, however, it can be likened to going on a diet. Attaining financial wellness often requires a lifestyle change, as it’s all about getting to a healthier state. Much like you take care of your physical and mental health, you will have to continually take care of your finances. Regardless of your current status, you should prepare for the future by prioritizing your wellness.
Financial wellness is truly holistic. It’s not just about getting out of debt, investing, or preparing for retirement. There is a myriad of different factors that will matter more to certain people at various stages of their lives, but there are two important concepts that our mentors like to use to help people better understand financial wellness.
Health Not Wealth
Financial wellness does not equate to being rich. Plenty of wealthy celebrities have gone bankrupt because they didn’t lead financially stable lifestyles. So often we find individuals are simply living beyond their means, no matter their income, resulting in the inability to practice other positive habits.
Additionally, financial wellness and health wellness are quite symbiotic in that focusing on one positively impacts the other. Financial stress takes a toll on your mind and body. It is one of the primary causes of health issues like heart disease and high blood process. Therefore, putting healthy financial plans in place can literally improve your well-being. It is typically the first and most important shift in mindset.
It’s a Process, Not an Event
Everybody would love to say that they are financially fit at the drop of a hat, but that is never the case. Returning to the example of dieting and losing weight, you must start the process and then work hard to maintain it. The same applies to your finances. People usually stop at the thought of making money, assuming will be financially well. But the event of earning money will not correct “bad” behaviors or better your financial knowledge. You should expect the same grind with your finances as you would with your health.
Using Financial Wellness to Improve Your Business
Most 9-to-5 employees assume that they cannot improve their financial wellness because they cannot afford a personal financial advisor or do not have access to the right educational resources. Fortunately, the number of companies with financial wellness programs is increasing every year. It is not just about improving the lives of individuals, either. Financial wellness for employees has many proven benefits for businesses, too, including reduced turnover, greater employee satisfaction, and even enhanced productivity.
Every program varies based on the approach of the financial wellness providers and how they define the concept. But ultimately, people simply need to strike a balance, make a plan, and feel confident enough in their plan to sustain it. That is going to look differently for everybody. It all comes down to feeling empowered to control your money and having a solid foundation of financial acumen.
Fortunately, Mentoro is ready and willing to provide comprehensive financial wellness programs to businesses and their employees. Through seminars, one-on-one coaching, and an online portal of extensive resources, Mentoro provides each and every employee with the tools to attain financial wellness. In order for employees to really adopt the financial wellness behaviors, though, we have to empower them through education. After all, knowledge truly is power.
If you are currently in the market for a financial wellness company or you want to learn more about the financial wellness definition and its many variations, be sure to contact the experts at Mentoro today!