As we head into a new year, it’s time to take a closer look at your finances. Maintaining your financial wellness is key to creating and achieving your short- and long-term financial goals. But what is financial wellness? From setting goals to preparing an emergency fund, learn everything you need to know about financial wellness with Landmark National Bank.
What is Financial Wellness?
The term “financial wellness” has become more and more commonly used by organizations everywhere to educate people about their personal finances. So, what is financial wellness? The National Financial Educators Council defines financial wellness simply as the relationship you cultivate with your money.
Furthermore, financial wellness highlights your financial stability, how you manage your expenses to fulfill goals, and your ability to prepare for any unknown factors in the future. In addition to learning how to make smart moves with your money, taking care of your financial wellness can help you prepare for emergencies or unexpected expenses. Following the COVID-19 pandemic, financial wellness has especially become a focus for many Millennials.
Set Your Financial Goals
Whether you are working towards paying off your student debt or saving for your own business, attaining your financial goals requires creating a plan for yourself. Becoming financially secure is part of forming that plan.
A key aspect of becoming financially secure is to develop a budget plan. A budget will help you have a clear understanding of your income, savings, and future expenses. In order to accomplish your financial goals, your budget will determine where you can start and how to reach the finish line. Once you have created a budget that works best for you, establish your short- and long-term financial goals.
Short-Term Financial Goals
When you begin to think about your short-term financial goals, remember that “short-term” has a relatively broad definition. Common short-term financial goals include home improvements, travel, or rent, and other recurring bills. Your established budget helps you determine how you will pay for everything you need and want.
Take control of your personal finances with a personal checking account that works for you. Controlling your money with the right checking account can help you analyze your spending and how to align with your budget plan.
Long-Term Financial Goals
Your long-term financial goals are the goals that require more than a few weeks or months of planning. This includes a retirement fund or paying off your home mortgage. Long-term goals depend on your financial situation and what payments you need to make sooner rather than later.
For some, a long-term goal could be paying for a car, while others may consider starting a business to be a more time-intensive plan. Once you’ve identified your long-term financial goals, it’s crucial to form a budget for them. Make sure that you select a personal savings account or business checking account to help you manage finances for your personal or professional future.
In addition to a budget for the costs you can plan for, you should have funds set aside for life’s more unpredictable twists and turns. Feeling financially comfortable comes with having a plan with your money that bridges your short and long-term goals together. This means that you can always be prepared for any emergencies or immediate costs that come your way right now or down the road.
To give yourself a secure financial buffer for unplanned costs, make sure that you have or create an emergency fund in addition to your savings account. To calculate how much you should have in your emergency fund, review the cost of your basic living expenses.
Whatever total you find, you should have enough money in your emergency fund to cover between three and six months of expenses. If you’ve never had an emergency fund, you don’t need to worry about reaching that amount immediately. However, as your fund grows, you can reach a state of comfort and preparation to lower any stress that comes your way.
Discover How To Maintain Your Financial Wellness With Landmark
Financial wellness doesn’t need to be an intimidating term. When you’re ready to manage your finances with a convenient banking account, Landmark National Bank is here to help. In addition to a variety of banking solutions and services, we offer online and mobile banking to help you take care of your financial wellness wherever you are.
Stop by one of our bank branch locations to start your journey to better financial wellness with Landmark National Bank today.