Lifestyle
How to Measure Financial Well-Being (and Why It’s Worth It)
One of the most challenging aspects of managing money is figuring out where you stand financially. After all, there’s nobody looking over your shoulder telling you whether the decisions you make are right or wrong. It helps to first have a framework for measuring your financial well-being — sort of like a report card.
The point of measuring your financial well-being against benchmarks is to help you get a sense of where you stand — and what actions you could take to bring yourself closer to your goals.
Here’s more on how to evaluate your financial standing and why it’s worth it to do so periodically.
Try the Consumer Financial Protection Bureau Well-Being Scale
The CFPB has actually developed a scale to help consumers assess their financial situations. Users answer sets of questions to determine where they fall on the scale, then add up the point values of their responses to get an overall “financial well-being score.” Users can then compare their scores to U.S. averages, as well as access resources on common topics — like tracking expenses, dealing with debt, saving and investing.
From these questions we begin to see some of the categories that define financial well-being, like:
- The ability to cover a large unanticipated expense without going into debt.
- Having money left over at the end of the month.
- The degree to which finances control your life and choices.
- Having room in your budget to cover variable expenses (like gifts for special occasions).
- Staying on top of bills and financial decisions rather than falling behind.
- Planning for the future, as well as managing money in the present.
If you’re short on time, you can fill out an abbreviated version of this scale to get a general feel for where you stand. If you’d like to take a more in-depth look, there’s a standard version with more questions.
According to the CFPB, financial well-being encompasses:
Net Worth: A Broad Look at Financial Well-Being
Perhaps the quickest and most straightforward way to evaluate financial well-being at a glance is calculating your net worth.
1. Tally up the value of your assets — like savings accounts, investments, vehicles, etc.
2. Tally up the total amount of your liabilities — like credit cards, mortgages, other loans, etc.
3. Subtract the liabilities from the assets.
These days, you can even plug these values into a simple net worth calculator rather than doing the math by hand.
Improving Your Financial Well-Being
It can be quite frustrating to find your financial well-being currently falls short of where you’d like it to be. However, getting an honest feel for where you stand today is the first step toward attaining your ideal financial future; it will help you set realistic goals and measure your progress.
Here’s an example: Many people exist in debt denial. They know they owe money, but avoid sitting down and looking at exactly how much — let alone planning how to repay it. Assessing their financial well-being could be the push they need to finally take an honest look at their budget and debts. After figuring out where they stand, someone in this situation may decide to speak with a credit counselor who then helps them get enrolled in debt relief management. Under a debt management plan (DMP), the person is able to consolidate their debts through the agency and pay what they owe over the course of three to five years at reduced interest.
According to Michigan State University, there are four general behaviors which support financial well-being:
- Living within your means by actively managing your money.
- Conducting research and gaining knowledge about financial decisions.
- Setting realistic goals and planning for the future.
- Following through on all three aforementioned behaviors over time.
Measuring financial well-being means checking in across various aspects of money management, which is why it’s a good practice for anyone and everyone. Only by understanding where you stand today can you set goals and make effective decisions for tomorrow.
Lifestyle
Veterans Care Coordination Outlines 10 Ways to Honor Senior Service Members
Honoring senior veterans is a meaningful way to acknowledge their service and sacrifices for the country.While there are many different ways to honor those who have served their country, Veterans Care Coordination (VCC) – a company that helps senior Veterans apply for home care services, has outlined 10 of the most effective ways to show appreciation and respect to older servicemembers in our communities.
1. Attend Veteran Ceremonies and Events: Participate in local veteran ceremonies, parades, and events, especially on days like Veterans Day and Memorial Day. Your presence demonstrates respect and recognition for their contributions.
2. Volunteer for Veteran Organizations: Many organizations that support veterans need volunteers. Offer your time to help with events, administrative tasks, or outreach programs that benefit senior veterans.
3. Visit Veteran Homes and Hospitals: Spend time with veterans in homes and hospitals. Many senior veterans, especially those in long-term care, appreciate visits and the opportunity to share their stories.
4. Educate Yourself and Others: Learn about the history, challenges, and contributions of veterans. Educate others by organizing or participating in community talks, school projects, or social media campaigns.
5. Support Veteran-Owned Businesses: Patronize businesses owned by veterans. This economic support helps veteran entrepreneurs and shows appreciation for their continued contributions to the community.
6. Create a Community Project: Initiate projects that specifically benefit senior veterans, such as building wheelchair ramps for disabled veterans or organizing social events that cater to their interests and needs.
7. Offer Your Skills and Services: If you have special skills or services, offer them to senior veterans. This could include legal advice, home repairs, medical care, or technological assistance.
8. Donate to Veteran Charities: Financial contributions to reputable organizations supporting veterans can make a significant impact. These donations often go toward programs that improve the quality of life for senior veterans.
9. Write Letters or Cards: Sending personalized letters, cards, or care packages to Senior veterans, particularly those without close family, can brighten their day and make them feel valued and remembered.
10. Advocate for Veteran Rights and Benefits: Be an advocate for veteran rights and benefits, ensuring they receive the support and recognition they deserve. This can involve supporting legislation, participating in advocacy groups, or simply spreading awareness of the issues facing senior veterans.
By implementing these actions, individuals and communities can honor senior veterans in meaningful ways, showing gratitude for their service and ensuring they are respected and remembered.
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