#113 | 8 tips for financial wellness, recorded live!

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Oleh friends on FIRE, Maggie Tucker, and Mike O'Leary ditemukan oleh Player FM dan komunitas kami — hak cipta dimiliki oleh penerbit, bukan Player FM, dan audio langsung didapatkan dari server mereka. Tekan tombol Berlangganan untuk mendapat setiap pembaharuan di Player FM, atau salin URL feed ke aplikasi podcast lainnya.

After reminiscing about how we met and started this podcast, we jump into a live discussion on financial wellness.

What is Financial Wellness? Let’s think about it as we would physical wellness:

  • Physical wellness means your body is working efficiently. You can exercise and move easily, and those activities are enjoyable.
  • You aren’t chronically sick or get sick often.
  • You aren’t in pain, and normal activities don’t cause pain.
  • And you can recover from injuries or sickness quicker when those things do happen.
  • Having an accountability partner or group will help you through those tough workouts.
  • Lastly, physical wellness means living a long, happy life.

Now let’s talk about financial wellness in the same way:

  • Your management of financial resources operates efficiently, and you can spend money on the things you need to live a happy life without trouble.
  • You aren’t under a mountain of unmanageable debt, and surprise expenses don’t create hardship.
  • Losing your job or needing to support a family member doesn’t ruin you financially.
  • And when you do lose income or have new expenses, you can rebound quickly and return to your path.
  • Having an accountability partner will help you reach your goals.
  • Lastly, financial wellbeing has the same goal of living a long, happy life.

So how do you get there? We’ve narrowed this down to 8 bits of advice to achieving financial wellness. And keep in mind that like physical wellness, this is a journey. You don’t run a marathon the first time you try jogging. It takes time.

  1. Create a goal. Work on it with your partner, parents, or kids. Think of it as a group effort, and work on it with your partner, parents, or kids. What do you want your life to look like? What do you want to be able to do?
  2. Develop a net worth mindset
  3. Track your expenses and work hard to reduce them.
  4. Stop caring so much about what people think. They don’t care, so why should you?
  5. Learn to manage your money and don’t outsource it until you are confident in your ability to make the right decisions for yourself.
  6. Have an emergency fund of at least 6 months of living expenses.
  7. Max out the tools available to you before spending on other stuff, such as 401k, HSA, pay down your mortgage faster, and eliminate your debt.
  8. Review your progress regularly to help build momentum and pivot when needed.

Top 3 takeaways:

  1. Financial wellness is very similar to physical wellness in that it’s a constant journey to self-improvement.
  2. Spend some time getting close to the details of your finances and learn how to manage them effectively.
  3. You need a powerful goal that keeps you motivated, and accountability partners will help.

Show references:

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Other Links

Maggie’s Blog: Mostly Minimal Life

Mike’s Book: Your New Relationship with Money

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