Page 8 - JanuaryFebruary25 CBA Report

Planning for Your Future
a g u i d e to f i n a n c i a l w e l l n e s s
Despite the fact that money is a central part of all of our
lives, financial literacy often isn’t taught explicitly. Many
of us learned about money indirectly—by observing how
our family and friends handled (or mishandled) their finances.
These lessons were sometimes incomplete or flawed, leaving us
with misconceptions and emotional baggage about money that
persisted into adulthood. It’s no surprise that many people have
complicated, and often fraught, relationships with their finances.
While informed financial planning is vitally important to
overall financial health, even the best plan can fail to deliver satis-
fying results when created in a vacuum. As a financial planner, I
take a holistic approach to financial planning by zooming out and
focusing on the larger picture of financial wellness. That means
I start by understanding a clients’ goals and motivations before
creating practical steps to help them achieve those goals.
This ‘financial wellness’ approach can be beneficial to anyone,
at any stage of life or career or income level—and you don’t have
to be a financial advisor to apply it! In this article, let's outline the
difference between financial wellness and financial planning and
the role each can play in helping you find financial peace of mind
and confidence in your decision-making.
What Is Financial Wellness?
Financial wellness is the sense of having financial security and
the freedom to make choices, both now and in the future. It’s
not solely about how much money you earn, save, or your overall
income level—it’s about how you feel about your financial life,
whether your finances allow you to meet your goals, and whether
you can handle financial stress in a healthy, balanced way.
Although the process requires a level of self-reflection and
discipline that may seem daunting, focusing on financial well-
ness—rather than just ticking off items on a financial planning
checklist—helps alleviate the fear and anxiety that lead to procras-
tination and dread.
By Michelle Stevens
By prioritizing financial wellness, you’ll ultimately gain
more freedom and peace of mind in your planning and deci-
sion-making. A worthwhile trade-off!
Three Pillars of Financial Wellness
To make the process more approachable, we’ve broken the
concept of financial wellness into three pillars. To build a solid
foundation tailored to your needs and goals, focus on these three
areas:
•
Clarity: Define your financial goals and priorities. What do
you want to achieve, and why is it important to you?
•
Knowledge: Understand your financial numbers—income,
expenses, net worth, debt, and savings goals. Awareness is
the first step toward making informed decisions.
•
Behavior: Align your actions with your priorities. This
includes managing your emotions and adjusting your habits
to honor both your financial goals and your current reality.
What Does Financial Wellness Mean to You?
Financial wellness varies greatly from person to person. The
goal is to determine what it looks like for you to feel financially
well.
Take a moment to reflect: What do I want to get right when it
comes to my finances?
Instead of focusing on what you don’t want to go wrong, shift
your mindset to what matters most. Financial wellness isn’t about
meeting arbitrary benchmarks or earning a certain amount—
it’s about creating a sense of security and satisfaction in how
you manage your money. It’s about making confident decisions
that leave you feeling secure and empowered, no matter your
circumstances.
8 THE REPORT | January/February 2025 | CincyBar.org