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Financial Well-Being - What Is It & why Is It Important?

April 21, 2023

Table of Contents

    Table of Contents

      Financial well-being helps us live with security and gives control over our finances, but how do we attain it? Read this blog to learn more about why is financial wellbeing important.

      In today’s competitive world, everyone faces different insecurities, the majority of which are financial. This indicates why financial well-being is important for today's generation.

      Several different elements contribute to our overall well-being.

      Factors such as our mental well-being, health, social life, and relationships are the key factors in our well-being. But our financial well-being is equally important and can significantly impact our lives.

      The state of financial well-being is subjective and varies from person to person. However, it is generally a zen stage when we know that we have established control on our finances.

      In the post-pandemic world, when people are recuperating from the financial losses they may have suffered during the COVID-19 rampage, most of us have realized the importance of being financially secured while facing uncertainties like the pandemic.

      Lack of financial well-being is not always in our control and can be due to outside factors. However, we can take certain precautionary measures to achieve financial stability and experience a sense of security and freedom.

      “Financial Well-being” What do we mean by this? Read This!

      In simple words, the state of financial well-being is –

      • When we can absorb a financial shock, such as an unexpected event in the future.
      • When we control our day-to-day and monthly finances (living expenses, bills, etc.).
      • When we are capable of meeting our personal financial goals set for ourselves.
      • When we can enjoy our life by having the freedom to pursue our passions and interests without worrying much about money.

      A certain sum of money in the bank does not equate to being financially stable. Instead, a person’s feelings of financial stress and optimism are a big part of how well off we are. Peace of mind is a direct result of one’s financial stability. Likewise, feeling at ease and safe with one’s financial situation signifies financial well-being.

      While looking at financial well-being, we must consider our entire financial picture, not just our income or savings. For instance, we might have a good salary, but we must also consider the accrued debt that isn’t paid off.

      Becoming Financially Secure

      Here are a few things we can do to secure control of our finances and maintain financial well-being —

      • We need to learn how to handle the money we earn. We should be able to meet all of our financial obligations, including rent or mortgage payments, utility bills, and food, without stressing over whether or not we will have enough money to last.

      • We need to save for rainy days by investing money in different schemes, instruments, heads, etc., to grow our money. Make a plan and follow a discipline to save religiously. We need to remember that money liquidity is also important so that we can withdraw cash when needed. We need to maintain a savings fund for emergencies like covering unexpected expenses or if we lose our job or income. Investing in digital gold with Jar App is an excellent option.

      • Have little debt, or better yet, if there’s none at all. If we have a manageable debt, we can pay it without additional penalties or significant interest. This also helps us maintain a good credit score, which is usually considered to be above 750.

      • Having a considerable disposable income for maintaining our standard of living or our current lifestyle.

      Having “financial freedom” is important for us to be able to afford to live a life that makes us happy. It may mean funds for taking a vacation or simply for dining out.

      While these aspects of financial well-being seem quite simple, there are a lot of people who fail to uphold them. This may lead to significant financial stress, spreading into other areas of our lives. Thus it can eventually affect our physical and mental health. This is the correlation between our Health and Financial Wellness.

      Importance of Financial Well-being

      Financial planning will help us with the security and control of our money. It is important to have financial well-being for —

      1. Reaching Financial Goals

      We all have some financial goals in life. For example, some people could aim to live independently from their parents, while others might want to travel worldwide.

      We need to set aside money each month for these goals without struggling to maintain our daily expenses.

      Jar is an excellent option where we can start saving with minimum amounts.

      2. Better Physical & Mental Health

      Not having enough finances to manage our routine expenses creates stress in our life.

      Excessive stress often affects our mental health and furthers our overall well-being.

      Financial well-being reduces our stress levels by delivering a sense of security. When we have financial stability, we can live a worry-free life and good health.

      3. Ready for Retirement

      A majority of people want to retire as soon as they can after working for money for more than 30 years.

      Sadly, we are forced to work at our jobs until retirement because we lack a financial plan and a basic understanding of our finances.

      But if we have a plan for our money, we can save enough to aid our lifestyle even after we retire.


      Financial planning is one of the most important tasks for any person, regardless of income level. Having control of our income, expenses, and savings is much easier when we follow a well-thought-out plan.

      Find Your Financial Well-Being by investing in digital gold. We can inculcate the habit of saving by downloading the Jar App and investing daily with convenience. It enables us to invest small daily amounts and helps grow our money steadily. This will eventually help us achieve financial wellness at a young age itself. We will be able to secure our future by investing in digital gold from today itself. So wait no more; sign up today!