What is financial wellness and how to achieve it?

What is Financial Wellness?

Financial wellness is more than just balancing your checkbook or avoiding debt — it is a state of being where an individual can meet current and future financial obligations, feel secure in their financial future, and make choices that allow them to enjoy life. 

In today's complex financial landscape, achieving financial wellness requires more than basic financial literacy. It is a combination of financial knowledge, preparedness and stability that involves a deep understanding of budgeting, saving, investing, and debt management, as well as the ability to adapt to changing economic conditions. Financial wellness is not a one-time achievement but an ongoing process that evolves with your life circumstances and goals.

Why is Financial Wellness important to us?

‍

Reduced Financial Stress

Achieving financial wellness significantly reduces financial stress, which is often a major source of anxiety.  According to PwC's 2023 Employee Financial Wellness Survey, 57% say finances are the top cause of stress in their lives. With a well-structured financial plan, you gain peace of mind knowing that your finances are under control. You are also less likely to make impulse financial decisions when you are confident in your financial strategy.

Enhanced Quality of Life

Financial wellness enhances your quality of life by providing the freedom to make choices that align with your values and goals. Whether it's travelling, pursuing hobbies, or investing in personal development, financial stability allows you to enjoy life more fully. It also enables you to support loved ones and contribute to causes you care about, further enriching your life.

Increased Financial Security

Long-term financial security is one of the most significant benefits of financial wellness. By systematically saving, investing, and managing debt, you build a solid financial foundation that can withstand economic fluctuations and life changes. This security ensures that you are prepared for unforeseen events and can maintain your standard of living even in retirement.

Ways to achieve financial wellness

‍

Having Clear Financial Goals and Plans

A set of well-defined financial goals casts a strong foundation for your journey to financial wellness. By breaking down your goals into different time buckets, and prioritising them based on urgency and importance, you can build out a holistic plan and adopt a goal-based investing approach that allows you to unlock each of them systematically. Take a minute to reflect on your current situation or get started with financial planning for yourself and your family with the help of this 5-step guide.

Read more: Your 5-step guide to financial planning

Building Good Financial Habits

Developing and maintaining good financial habits is essential for long-term financial wellness. Automate your savings and bill payments to ensure consistency and avoid missed deadlines. Practise mindful spending by distinguishing between needs and wants, and make informed purchasing decisions. Regularly review your bank and credit card statements to monitor your spending patterns and identify areas for improvement. Cultivate a habit of continuous learning by staying informed about financial trends, investment opportunities, or even changes in tax rules.

Leveraging Corporate Resources

More companies recognise the importance of financial wellness as an important part of overall well-being. The Wealth & Wellbeing Insight Report 2024 shows that having good financial preparedness leads to better job satisfaction, higher productivity and lower turnover intent. As a result, from e-learning materials, financial literacy workshops, retirement planning seminars to consulting sessions, companies offer resources to help employees manage their finances effectively. Endowus partners with corporates to provide employees access to the professionally curated digital wealth management platform at a preferential rate. Learn more about the Endowus Corporate Financial Wellness Programme or refer your human resources officer to get in touch with us.

Financial Wellness is an Ongoing Journey

Achieving financial wellness is a multifaceted journey that requires strategic planning, disciplined execution, and continuous learning. Its benefits extend far beyond financial security to reduce stress, enhance quality of life and improve overall mental and physical health. Start early with a comprehensive plan, and embrace the peace of mind that comes with financial well-being.

Click here to get started with Endowus Hong Kong today, Or you can schedule a 1-on-1 free consultation with our SFC-licensed client advisors, who would be more than happy to advise you on your journey towards financial wellness.

Read more:

• Investment tips in your 20s
• ‍Financial planning for married couples
• Financial planning for new parents in Hong Kong

<divider><divider>

Risk Warnings

Investment involves risk. Past performance is not an indicator nor a guarantee of future performance. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Rates of exchange may cause the value of investments to go up or down. 

This article is not intended to be relied upon as a forecast or research or investment advice, and should not form the basis of any investment or other decisions. The information contained herein is not intended, and should not be construed, as any legal, tax, regulatory, accounting or financial advice. If you would like investment, accounting, tax or legal advice, you should consult with your own professional advisors regarding your individual circumstances and needs.

The information in this article may not be suitable for all investors. You are responsible for any action that you take or decision that you make in reliance on any content in this article, and you agree that Endowus HK Limited (“Endowus”) is not liable under any circumstances.

No invitation or solicitation

Neither the information, nor any opinion, contained in this article constitutes a recommendation, offer or solicitation  by Endowus or its affiliates to you to buy or sell any securities, collective investment schemes or other financial instruments or services, nor shall any such security, collective investment scheme, or other financial instruments or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction. 

This is not intended to be an invitation or offer made to the public to subscribe for any financial product or to enter into any transaction.

Accuracy of Information

Whilst Endowus has made reasonable efforts to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies or errors in any such information. Endowus does not warrant or represent that the information in this article is correct, accurate or reliable. 

Opinions

Any opinion or estimate above is made on a general basis and none of Endowus, nor any of its affiliates, representatives or agents have given any consideration to nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Opinions expressed herein are subject to change without notice.  

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this article are subject to market influences and contingent upon matters outside the control of Endowus and therefore may not be realised in the future. 

In presenting the information above, none of Endowus, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances.

This article has not been reviewed by the Securities and Futures Commission of Hong Kong.