Three Steps to Financial Wellness

Evan Davies - Jan 04, 2019
Financial Wellness = Financial Security

Each year, physical health tends to be at the top of people's resolution lists for the New Year, the packed gyms during the first weeks of January are evidence of this. When planning New Year's resolutions, many often fail to note how much our financial health can impact our physical and mental health, as well as overall quality of life. 


Financial Wellness = Financial Security

Financial wellness has less to do with how much money you earn and more to do with how you manage it. When your monthly income covers your expenses and you still have money leftover to invest in achieving other financial goals like, funding your child's education tuition, or saving for retirement. On the road to achieving financial wellness, it's important to have a good understanding of where your money goes each month as well as how on track you are to meet your future financial goals. 


Step 1: Update your budget to increase future savings

  • Make a list of your expenses for one month - distinguish between needs vs. wants 
  • Create a realistic budget and set limits to stop overspending

According to Financial Therapist, Amanda Clayman,  "...attention is really critical to living a purpose-driven financial life based on wellness. Having a regular time that you’re sitting down and reviewing, predicting, and planning what’s going on with your money is one of the best gifts we can give ourselves.”

Step 2: Automate your Savings & RRSP Contributions

  • Pay yourself first, automate your savings in addition to automatic bill payments
  • Build your savings by putting funds into an emergency fund each month, be prepared for the unexpected
  • Automate your RRSP contributions to ensure you're making the most out of it

Step 3: Make a Debt Decrease Plan

  • Pay off credit cards with higher interest rates first
  • Pay as much as you can on your smallest debts, and at least the minimum payment on larger debts

Ask for help! 

Contact me to discuss the ways I can help you achieve financial wellness.