Financial wellness refers to ones ability to manage their financial situation with the aim of enhancing it. Financial wellness is an area in ones life would have a great impact in the quality of livelihood. Managing this aspect of ones life requires some training on financial management. However, it first requires the individual to identify and accept their shortcomings in the financial department of their lives. This will help the subject to create feasible objectives that will help in addressing the issues at hand. However, these objectives can change as the subject adapts to the actual implementation of the action plan. The successful implementation of the action plan will require the use of several financial tools as well as secondary help if possible. Addressing the challenges faced by the subject and pointing out some tip and suggestion will be a key learning point for the subject. It will also enhance the subjects capability to implement better future plans.
The main problem with regards to my financial capacity is managing my consumption of income while enhancing my money making capability. First of all, I would like to appreciate the fact that I have been able to maintain a budget for the last three months. However, it has been seemingly impossible to reduce my consumption and ensure an increase in my money making capability. This makes my financial cycles seem like an exercise in futility as I have stagnated. This has pushed me to feel stressed since despite my hard work, I do not seem to progress to a point where my money is working for me. The objective is to reduce my consumption and ensure the surplus income is invested. The goal for these actions is to increase the capability of my finances working for me. This is seen as a great force multiplier. In order to achieve this goal, it will be important to start purchasing assets in comparison to purchasing liabilities. Therefore, the second most important objective is to learn the difference between an asset and a liability. This will provide me with the capability to improve the quality of my purchases over time. It will also help in improving the motivation I experience over time.
There are changes that I have been able to make over time, one of the main changes is to break down the objectives into smaller manageable short term objectives that build up to long term goals. The short term objectives include a daily calculation of the money made and money spent. This will give me a clear outlook of the progress made over time. This strategy also provides me with the ability to see the mistakes I might have made with my finances in during the day that has passed (Linde 4). However, it is important to ensure that I also acknowledge any positive financial decisions that I have made over a weekly period of time. The benefit of this is that it reduces the stress resulting from being frugal (Linde 5). It actually enhances the pleasure I will feel as a result of the frugal nature of my financial discipline. The tools I will need to exact these objectives include a balance sheet that will balance out my assets and liabilities. At the beginning of the action plan, I can use my saving account as the first asset that requires being invested in. this is crucial in that it create a financial discipline that gears me towards exponential growth.
Research into this topic clearly shows that most people are having difficulties managing their personal finances (Rogin and Lisa 7). This is translated to their business finances. In the long run, these individuals find themselves in difficult financial positions that will limit any future growth. However, most employers are regularly enrolling their employees into training schemes that will ensure that their employees continue to thrive in their personal finances. This is because the company requires the employees to be positively motivated if they are going to be continually productive (Lucey et al. 9). The best way to do this is to provide employees with incentives for following particular financial practices. Some of the challenges faced in the implementation of such ideologies are the lack of finances to implement the initial steps. For instance, an individual seeking to start a saving regime will be hampered by the possibility that they have other financial responsibilities that are too difficult to let go (Lucey et al. 3). Another challenge one may face is the often urge to break out of the financial patterns as a result of peer pressure. This is because one may feel left out whenever they have to change their financial patterns. This results in a consistent urge to fall back to old ways.
It is important to resist an urge to go back on a developed action plan. However, having a big brother in the implementation of the action plan will ensure that I develop the discipline needed in the implementation of the action plan (Linde 7). Other suggestions include the hiring of a financial coach if I can afford one. This is because the financial coach will ensure that I develop the best financial discipline and maintain the routines that will push my financial wellness to a new level. It is also important that I invest in financial material that will increase my knowledge regarding the different activities that will improve the quality my financial decision. Reading a book a month on the ways of improving my finances is crucial in ensuring that I continue in the process of improving my financial muscle (Rogin and Lisa 2). I plan to continue with this action plan even after the completion of this assignment as it will ensure that I grow into an individual with a positive future. While most people have their dreams fizzle as a result of poor financial decisions, my decisions will be clear and concise. Taking the opportunity to learn more about financial wellness will positively impact both my life and that of my family.
Financial wellness is a key area in an individuals life. If one were to disregard this area of their life, chances are that they would have to deal with other issues that include the depleting self confidence that in turn would result in negative influence to ones other life aspects. The key to this is that one needs to determine their weaknesses, accept their financial weaknesses, and then adjust. The help of a professional financier is crucial in determining the individuals success rate while implementing a predetermined action plan. However, if the individual in question develops financial routines that are geared towards exponential growth, chances are that the individual will grow into a position of financial stability after a short time. This results in an increase in self confidence, improved health, and an all round positive mindset.
Linde, Bennie. The Value of Wellness in the Workplace: A Perspective of the Employee-Organisation Relationship in the South African Labour Market. , 2015. Internet resource.
Rogin, Ellen, and Lisa Kueng. Picture Your Prosperity: Smart Money Moves to Turn Your Vision into Reality. , 2015. Print.
Lucey, Thomas A, Mary F. Agnello, and James D. Laney. A Critically Compassionate Approach to Financial Literacy. , 2015. Internet resource.Appendix
Log of Activities
1 I have stated my financial problems and reached out to a friend for help.
2 I have been calculating my financial expenditures and reduced my expenditure.
3 I have started saving my surplus into my bank account.
4 I have started purchasing assets; these are books for my financial growth on my first moth.
5 I have joined a group of other students who are like minded in the aim of improving their finances.
6 I have reduced my financial expenditure so much that my saving has increased two fold.
7 I have reach out to finance professional for more advice on other measure that I can take to improve my financial decision.
8 I have used the saving accumulated to purchase minimal risk shares in a start up, I am proud of this decision.
9 The new month has seen me increase the number of financial related books to two, the new book teaches about financial discipline.
10 I have added the new objective of rewarding myself with a trip at the end of the month if I maintain the positive financial routines.
11 I have started saving up for a personal business.
12 My savings have tripled as a result of subsidiary income from the shares.
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