Financial Wellbeing is more than just looking at your money, it’s about living the life you choose
Money can be a tough thing to talk about. It isn’t something that we feel is culturally acceptable, so this was quite often how I would start a client conversation as a Financial Planner, “Life is full of choices and not making a decision is still a choice.”
Managing money isn’t something that has been historically covered well in school, and there can be a misunderstood connection between money and happiness. We are led to believe that the more money we have the happier we will be, but large sums of money can come with other considerations such as taxation and pressure from others on how to spend your money. How much time are you giving up to create your pot of money? What are you missing out on?
“Money can’t buy you happiness.”
Can money buy you happiness? In the short term maybe – that lovely handbag, that new watch –but in western economies money is inextricably linked to time…
Time and Money
The Money and Pensions Service defines financial wellbeing as feeling secure and in control of your finances, both now and in the future. It’s knowing that you can pay the bills today, can deal with the unexpected, and are on track for a healthy financial future. When you are growing your financial independence, your time is spent working and it earns you money, so it’s time in exchange for money. In the future this money buys you time and experiences. But you could argue that what it actually buys you is future fun and security. The big questions is – what does fun and security look like for you?
Insufficient money leads to more stress, but quite often people don’t know what their financial shortfall is either now or in the future, they just sense that it isn’t good and that adds to the pressure. So how do you create a sense of wellbeing around your finances, both now and in the future?
What are the 3 steps that you can take to improve your financial wellbeing?
1.Understand your current financial position
2. Ask yourself, “Am I living the life I choose?”
3 Focus on your financial education, decision making and behaviour
The combination of these things will lead to a sense of greater financial wellbeing.
1. Understand your current financial position
The starting point for improving your financial wellbeing is to be clear about your current position. Even if you are struggling financially, understanding your position and making a plan will help you to achieve a sense of financial wellbeing. Decisions can be made to reduce outgoings, or to find a better way of applying what you have. This can include dealing with debt. So make a list of your incoming and outgoings and be honest – check with your bank statement and credit cards – where does the money really go?
Now list your assets such as bank accounts, houses, businesses and investments, also liabilities such as credit card bills, overdrafts and mortgages. Do you have more assets than liabilities? Are you spending more than you are earning? This is the first step of a financial plan. Projecting your income and expenditure forward to see what your future surplus looks like is the next step and a qualified financial adviser can help you to see where you will be in the future if you continue on your current path.
But remember, there are many paths and the next point is crucial for discovering what other paths are available to you.
2. Ask yourself, “Am living the life I choose?”
Financial wellbeing isn’t alway about having lots of cash and a fancy house and car. I am always reminded of an actor friend of mine who felt that when he had £100 in the bank he was the richest man alive! I also had clients with millions in the bank who never felt it was enough. Your relationship with money can be an area of personal growth. A time to explore your limiting beliefs around money, what you really desire in your life and your expectations of how much your future amazing life will cost. So often I would hear clients tell me that they just wanted their time back, the bills paid and a pot of money to have some fun. “How much is enough” is different for everyone, and starts with you understanding what drives you, what makes you smile.
Consider these questions
- If money was no object, what would you do with your time?
- How much time, money and energy do you spend keeping your current position sustainable? Do you have a clear vision of what you actually want from life?
- How much your ideal life would cost?
- What do you day dream about, and why? How could this become part of your future vision?
The Dalai Lama, when asked what surprised him most about humanity, answered “Man! Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.
There is more in this section about the psychology of financial wellbeing than I can cover in this blog, but ask yourself about your priorities and ask yourself how much of your attitude to money is inherited and how much is realistic given your position.
3. Focus on your financial education, decision making and behaviours
Knowledge is power. The better you understand your finances, the easier it is to make well-informed choices and the greater your sense of financial wellbeing will be. This also takes the stress out of hearing things on the news and wondering what that means for you. Or being pulled into what ‘people down the pub’ say is a great idea. Continuously educate yourself about personal finance. Read books, attend seminars or webinars, and follow reputable financial websites to improve your knowledge. Learn from financial professionals in your life. Understanding financial concepts and strategies empowers you to make informed decisions and take control of your financial future.
Part of financial education is understanding and preparing for the impact of financial shocks on your life and your disposable income both initially and long term. Death of a partner, life changing illness, divorce, retirement, having children, redundancy, these are just some of the financial shocks you may experience. Having a cash emergency fund, insurances and having wills and powers of attorney in place can help you counteract these pressures. Understanding the financial impact of these shocks is unique to you as will be your attitude towards the risks presented. A qualified financial planner can help you to make informed choices for your circumstances.
How do you behave under pressure? We interviewed Fanny Snaith in our podcast on money architypes and you can hear her thoughts on money here. Many of our financial triggers are learned from our parents, such as a fear of lack, leading to over working.
What or who influences you when it comes to money? What makes you feel safe with their advice? How do they add to your sense of financial wellbeing?
For more help with understanding your financial position and your options, seek the advice of a qualified financial planner.
For more information on financial freedom we will have a free webinar on 1st July 2025 1pm. Sign up here
We also have a financial wellbeing module for workplaces, take a look here
Other resources to help improve your financial wellbeing
Money Advice Service (MAS): The Money Advice Service is a free and impartial service offering information and resources on various financial topics, including budgeting, debt management, savings, and retirement planning. Their website provides guides, tools, and calculators to help individuals improve their financial well-being. (Website: https://www.moneyadviceservice.org.uk/
Citizens Advice: Citizens Advice is a network of independent charities that provide free, confidential advice on a wide range of issues, including money and debt management. They offer guidance on budgeting, benefits, housing, and other financial concerns. (Website: https://www.citizensadvice.org.uk/)
MoneySavingExpert: MoneySavingExpert is a popular consumer finance website that offers tips, guides, and tools to help individuals save money, manage debt, find the best deals, and make informed financial decisions. It covers various topics, including banking, insurance, utilities, and shopping. (Website: https://www.moneysavingexpert.com/)
StepChange Debt Charity: StepChange is a charity that specializes in debt management and provides free, confidential debt advice. They offer debt solutions, budgeting tools, and support to help individuals regain control of their finances. (Website: https://www.stepchange.org/)
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