Principles of Financial Wellness

1. A disciplined approach to giving, saving, and spending can create financial balance. This develops the priority of what you do with your income.

It also creates a habit of thinking both beyond yourself in the present and also beyond your present self for the future.

2. Maintaining a monthly budget aids in recognizing the difference between essential needs and discretionary wants & wishes, which can result in better financial decision making.

The ability to distinguish between needs and wants can prevent one from spending more than they earn. Also, by delaying gratification of something we want we often realize that it was not such a big desire as we thought and there are now more funds for the other things we might need. Discretionary purchases should be intentional and not driven by whim, status, or greed.

3. Accumulating debt risks future financial freedom.

When someone else has a claim on the fruits of your labor then you are in bondage. To indenture oneself for future gain (e.g. a mortgage) may be beneficial in some instances, but too much will result in slavery.

4. Exposure to risk should be examined and measured against available resources and the potential to transfer an unwanted amount to another entity, such as an insurance company.

The possibility and severity of an event can be mitigated by transferring the consequences to another entity if, after evaluating those aspects, it is determined the occurrence would be financially devastating.

5. Emotion-driven decisions could lead to poor investment results.

Decisions based on the heart or the gut and which cannot be empirically defended are little better than a guess or a coin toss. Reacting to news, opinions, or market fear/exuberance, rather than a long term strategy, may lower investment returns.

6. Long­-term goals may best be achieved by creating, implementing, and periodically reviewing a strategic plan.

Dreams with a plan become goals; a dream without a plan is merely a wish. Success may be achieved when it can be measured and when steps can be implemented to bring it to fruition.

7. Creating income streams that are not dependent on physical labor or intellectual work can help provide security in retirement.

Additional income streams that provide the potential for growth can reduce dependency on income from employment and help protect your retirement.

8. Contentment leads to a peaceful disposition; succumbing to temptation can result in ruin and destruction.

We brought nothing into the world, and we can take nothing out. An attitude of gratefulness will increase appreciation of the things you have and help avoid circumstances that may lead to risky endeavors or even ill gotten gains.