Financial well-being is something the majority of people strive to achieve. No one wants to feel like they are living paycheck to paycheck, and not only is financial well-being and satisfaction important for decreasing stress but also for enjoying life. Learning what makes up financial well-being is the beginning of how to achieve financial well-being. However, if you find yourself falling into bankruptcy, consider talking to a Tullahoma bankruptcy attorney for help.
WHAT IS PERSONAL FINANCIAL WELL-BEING
First off, you might be wondering what financial satisfaction and well-being really are. Achieving financial well-being means feeling financially satisfied, minimal stress over finances, and being in control. Financial satisfaction is several things:
Feeling satisfied with your income
- Knowing you have enough money to manage financial emergencies
- Meeting basic needs
- Little to no debt or ability to pay debt effectively
- Having enough money in savings
- Money available for future financial goals or working toward financial goals
The interesting thing about all of these components that make up financial satisfaction is that some of them depend on your perception. Different people perceive different levels of income or savings as satisfying. Some people may feel the need to have more money saved than others depending on preferences, the way they were raised, and future financial goals.
Having financial satisfaction leads to financial well-being, that is, not stressing over finances. This, in turn, leads to overall well-being and increased life satisfaction. What makes up financial well-being is:
- Financial freedom and choices
- The ability to work on financial goals
- Feeling control over your financial situation
- Confidence in being able to survive financial emergencies or pitfalls
Financial well-being can be increased by knowledge, skills, and decisions related to finances. Having financial experience helps with this. This is something that can be worked on by reading books, using financial apps, and learning more about how to manage personal finances.
ACHIEVING FINANCIAL WELL-BEING
The steps to achieve financial well-being include three main things. These include paying bills, knowing how to borrow and save, and how to save for retirement. Budgeting is one of the best tools to use to pay bills effectively. By knowing how much money you make and spend each month, you could save a lot of money and pay all your bills on time.
All this requires is calculating what leftover money you have or do not have each month and planning what to spend that money on. Write out your budgeting plan and stick to this. Saving and borrowing money comes down to:
- Using debit instead of credit
- Saving up to six months of your income
- Avoiding high-interest rates
Saving for retirement means researching and choosing a plan you can invest in like 401k or your own personal savings plan.
BANKRUPTCY ATTORNEY IN TULLAHOMA, TN
You may not have to go through bankruptcy alone. All you have to do is contact us today at Tom Bible Law at (423) 690-7712 for a consultation about your financial situation. Our experienced team of Tennessee bankruptcy lawyers is ready to help you explore all your financial options related to bankruptcy. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.