What Thriving Financial Well-Being looks like is a woman who manages her economic life to reduce stress, increase security and have freedom to do what makes her heart sing. Not only does she have enough money to pay for her basic needs, she is overall satisfied with her standard of living, she has a sense that her future is getting better, and has the confidence that comes with long-term financial positioning. She does not put her finances at risk for emotional self-regulation (“retail therapy”) and she has clarity and conviction about what she is worth.
Interesting ideas about Financial Well-Being:
- Spending money on yourself does not boost Well-Being
- People who watched a sad video spent 4 times more than others who did not (emotions impact our spending)
- Experiences last while the feelings of material purchases fade
- Satisfaction with material goods decreases over time – buy today, lose interest tomorrow
- Finding $50 is a better emotional hit than having $50 savings from your phone bill
- Credit cards take the pain out of spending money – they are considered a decoupling strategy separating pain and joy and are one of the most marketed financial products in America – (BEWARE ladies!! Chasing points on a credit card is another way financial institutions encourage us to spend – money is emotional)
Source: Rath, T. & Harter, J. (2010). Well Being: The Five Essential Elements. New York: Gallup Press.