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.
Healthy Home Upgrades That Won’t Break the Bank
Health and happiness go hand in hand, when you invest in your wellbeing, you open the door to endless benefits, from reduced stress to better resiliency, and even increased productivity. While committing to regular exercise and ensuring you get checkups is important, there are also ways you can improve your health by making changes at home. Today, we’re going to look at some of the home upgrades you can consider if you want to enhance your lifestyle, improve your health, and even potentially improve your home’s value.
Invest in New Kitchen Technology
Your kitchen is a crucial tool in your quest for better health. It’s where you’ll prepare healthier, nutritious meals to match your diet requirements, and even pursue positive hobbies. Some kitchen upgrades, like motion sensor faucets can significantly improve the value of your home too. Others are great for simply improving your health in a variety of ways. An intelligent oven hood can help to remove unwanted contaminants from your kitchen while you cook. Smart kitchen gadgets, such as air fryers, can cook your favorite foods without infusing them with additional fat, helping you to lose weight, and save time on cooking.
Consider a Home Lift
Sometimes, the best way to invest in better health is to think about the future. If you want to stay in your home for as long as possible, purchasing a home lift is a great way to ensure you can still navigate the various floors of your house easily, even when your mobility begins to dwindle.
Home lifts can also be extremely useful when you’re still young, making it easy to move things around your home (like heavy boxes), without risk. These days, the cost of a home lift in the UK can be much lower than you’d think, and there are many styles and designs to choose from. Plus, installing one of these lifts will help to give you an edge in the real estate market when you decide to sell your home.
Improve Your Air Quality
Few things are more important to your quality of life than good air quality. Unfortunately, most of us don’t realize just how many contaminants and dangerous fumes we’re exposed to every day. Simple changes, like choosing non-toxic and sustainable cleaning products can make a huge difference, but you’re more likely to see major results with a significant upgrade. Installing an air filtration system in your home, or a dehumidifier will help to banish various allergens and unwanted substances from the air, so you and your family can breathe a little easier. You can even consider installing your own HEPA filtered heating and cooling system.
Healthy Lives Start at Home
While there are plenty of ways to invest in your health and wellbeing from exercising more frequently, to meditating, seeking out counselling, or even changing your diet, it pays to start close to home. If you’re thinking of upgrading your property anyway, or you want to live a more luxurious lifestyle, consider the strategies above to boost your home’s value and your health.
- Fitness Dating Brand, FITFCK, Expand Into Influencer Management November 27, 2023
- Mark Anthony Williams-Ruling the Real Estate Sector of The United States November 26, 2023
- Essential Steps to Start Off Entrepreneurial Leadership November 26, 2023
- The Subtle Cues in Our Environment that Encourage Healthier Living November 26, 2023
- Healthy Home Upgrades That Won’t Break the Bank November 24, 2023
- Andriy Dovbenko’s TechExchange: Advancing AgriTech and DefenceTech Startups November 24, 2023
- Mobile Commerce Trends: Do You Need a M-Commerce App in 2023? November 18, 2023
- 5 Ways to Make your Next Car More Affordable November 16, 2023
- How Domestic Travel Insurance Can Protect You On Your Australian Adventure November 14, 2023
- 5 Common Personal Injury Case Types You Ought to Know November 14, 2023
Tech3 years ago
Effuel Reviews (2021) – Effuel ECO OBD2 Saves Fuel, and Reduce Gas Cost? Effuel Customer Reviews
Tech4 years ago
Bosch Power Tools India Launches ‘Cordless Matlab Bosch’ Campaign to Demonstrate the Power of Cordless
Lifestyle4 years ago
Catholic Cases App brings Church’s Moral Teachings to Androids and iPhones
Lifestyle3 years ago
East Side Hype x Billionaire Boys Club. Hottest New Streetwear Releases in Utah.
Tech5 years ago
Cloud Buyers & Investors to Profit in the Future
Lifestyle3 years ago
The Midas of Cosmetic Dermatology: Dr. Simon Ourian
Health5 years ago
CBDistillery Review: Is it a scam?
Entertainment4 years ago
Avengers Endgame now Available on 123Movies for Download & Streaming for Free