Financial Wellness and Neontra

Few things in life give us as much freedom as having our finances in order, and we're here to help people take control of theirs. This article is simply meant to provide knowledge and food for thought. It's not a suggestion for a certain course of action or financial advice.

What’s financial wellness or financial wellbeing?

Everyone’s idea of financial wellness is different. For some people, it means:

• Having enough cash on hand to cover all major expenses, whether anticipated or not, live comfortably, and develop future plans
• Being able to cover all current expenses, live comfortably, and maintain a healthy level of savings for retirement
• To pay down debt and be worry-free about money both now and in the future
• Having financial security both now and in the future
• Knowing what makes us happy, and having money goals to achieve that happiness

What does financial wellness mean to you? There is no wrong answer, but it's less about numbers and dollar amounts and more about feeling knowledgeable about your money and having control over where it's going.

Instead of looking purely at "money" or "finances" consider breaking this down into a sub-categories:

1. Income
2. Long-term savings
3. Emergency funds/safety net
4. Debt
5. Assets

Find out how you can improve on each of these categories then start thinking about what makes you happy today and tomorrow. Start formalizing these thoughts:

1. Short-term goals are generally to be achieved within 1 year
2. Mid-term goals could take between 1 to 5 years to complete
3. Long-term goals take 5 years or longer to achieve

Short-term goals examples:

• Building an emergency fund
• Paying off credit card debt
• Saving for a holiday
• Setting a budget
  

Mid-term goals examples:

• Saving for a home down payment
• Saving for a home renovation
• Paying off student loans
• Buying a vehicle
• Investing budget
  

Long-term goals examples:

• Retirement planning
• Saving for children's college fund
• Paying off student loans
• Living debt free

Everybody has distinct goals and objectives. Neontra features goal-planning tools to help you keep formal plans and scenario tests. Neontra can automatically update your goals when your circumstances change and keep them current to help you stay on track. Experts recommend you make SMART financial goals to help you identify exactly what you want and how you plan to achieve it.

SMART goals are:

• Specific
• Measurable
• Achievable
• Relevant
• Time-Based

By identifying and tracking all your goals in one place, you’ll be on the path to achieving better long-term financial wellbeing. Creating and reviewing your financial goals is easy. You can easily review all your goals and a long-term financial plan. The ability to see oneself in the future and develop a long-term financial plan are two essential components of financial wellness.

Neontra can track your income, expenses, savings, budget and goals to help you plan for a better and brighter financial future.