Our financial situation and our financial “health” are two different things. There are subtle but significant differences. Our financial situation almost always refers to our actual wealth or income. It refers to whether we are comfortable or struggling too, but it usually only linked to income and outgoings. Our financial “health”, however, takes these things on board but also incorporates our attitude and habits. Our behaviour with our money is as significant as the amount of money itself. If we manage our money poorly, for example, we will never feel wealthy no matter how much we earn. Conversely, if we manage our money effectively, we will feel comfortable even if our income could be seen as low. We can improve our financial health by ensuring that we are cultivating healthy habits and attitudes. These will benefit us both in the short and long term, and in more ways than just financial. Research has shown that money troubles can have a negative effect on our overall health, well-being, and stress levels. If we feel in control of our money, it follows that we are less likely to experience those stresses and strains.
If you are interested in cultivating positive habits and improving your financial health as well as wealth, read on.
Admit When There Is A Problem
A lack of communication can be one of the biggest barriers for achieving financial freedom. It can be tempting to avoid addressing problems and to hope that they will improve themselves. Our refusal to acknowledge when there is a problem can extend to not admitting it to ourselves and others. We may feel that acknowledging a problem and seeking help is a sign of weakness or admission of defeat. But the reality is that this takes a great deal of personal courage. Trying to take control of your financial situation even in the face of adversity is an indication of strength, not weakness. If we can get into the habit of admitting problems to both ourselves and others, we are more likely to solve them quickly. By facing issues head-on, we can sometimes prevent a minor problem from becoming a major crisis!
Setting financial goals and challenges can be a wonderful way to take a full and active interest in your financial health. Goals can be as routine as sticking to a budget, or as ambitious as property investments. Whatever our ambitions, we should remind ourselves of them often. The sense of accomplishment when we achieve them or take a step closer is a great motivation to stay on track.
Researching financial issues that we do not understand can be an empowering experience. It enables us to make more informed decisions when it comes to our own wealth. It broadens our knowledge and experience. It also removes the sense of powerless that many people feel when it comes to their finances. By making an effort to understand terminology or opportunities, we will feel more in control and confident in our finances.