Financial Well-Being: Attaining Wallet Zen

May 15, 2025

During any stage of life, you may encounter financial challenges:you start your first “real” job, you need a bigger house for your growing family, your oldest is getting ready to apply to colleges, or your retirement nest egg isn’t as big as you think it should be. Is there ever a time when you can enjoy financial peace of mind? Financial well-being may seem elusive, but it is achievable at any stage of life.

What Is Financial Well-Being?

There is a lot of buzz about well-being when it comes to physical and mental health, but less chatter about how the state of your finances can give you that feel-good vibe. More than just those exciting moments when you get a bonus at work or make your last car payment, well-being can be a state of general happiness and contentment. Having a sense of well-being about your finances means you can:

Attaining financial well-being can even help reduce stress and have a positive effect on your physical and mental health. A poor financial outlook can cause stress, which may lead to health issues and a downward spiral: The cost of healthcare for treating chronic disease and long-term health problems can detract from your feeling of financial well-being.

Improving Financial Well-Being

Improving financial well-being is not just about money; it’s about wellness. And it can be within reach for everyone, no matter your age, income level, or life circumstances – depending on your mindset and the actions you take. It may take coordinating several aspects of your financial picture, and it can look different for everyone. Consider making changes in these four areas to improve your financial well-being:

• Be in Control: Confident financial management is an important part of financial well-being. It does not necessarily mean you have a lot of money, but it means you know how to manage your funds to cover your expenses. You pay your bills on time and don’t have big money concerns.
• Be Resilient: Unexpected expenses, like medical bills or emergency home repairs, can disrupt your otherwise well-managed finances. Financial well-being means you have a safety net in place that may include emergency savings and insurance to help you pay those unexpected expenses rather than letting them become long-term crises.
• Be Flexible: Making choices is one of the things that helps you define yourself as an individual. You may choose to pursue a hobby, have a big family, or become a world traveler. When you have the financial flexibility to make the choices that are important to you, it helps put you on the path to well-being.
• Be Persistent: The things you want in life may be within reach if you are experiencing financial well-being. You  may need to be patient and make some sacrifices, but you know you can work toward your desired goals, like a new house, a special family trip, or early retirement.

Attaining financial well-being can even help reduce stress and have a positive effect on your physical and mental health. A poor financial outlook can cause stress, which may lead to health issues and a downward spiral: The cost of healthcare for treating chronic disease and long-term health problems can detract from your feeling of financial well-being.

Improving Financial Well-Being

Improving financial well-being is not just about money; it’s about wellness. And it can be within reach for everyone, no matter your age, income level, or life circumstances – depending on your mindset and the actions you take. It may take coordinating several aspects of your financial picture, and it can look different for everyone. Consider making changes in these four areas to improve your financial well-being:

• Budgeting: Perhaps the most important activity for attaining financial well-being is keeping a budget. Tracking how you spend your money can help you gain a sense of control over your finances. Knowing where your money is going can help you make good financial decisions that can improve your overall financial well-being. Budgeting can be very simple, and there are easily available tools designed to help you stay on track with your budget. Ridgewood Savings Bank offers a range of financial planning tools, including Money Management (MX) for budgeting and Ridgewood Financial Academy, a free financial literacy online resource to help you take charge of your money with ease.
• Preparing for Emergencies: An emergency financial plan ideally starts with a savings fund. Try to put aside money to deal with any unexpected expenses that arise such as saving enough money to cover three to six months of living expenses in case you lose your job. Insurance products can also be part of your emergency preparation since the right policy may help you recover financially from unexpected losses to your home, auto, or business. Ridgewood Savings Bank offers various savings accounts that can help you build your emergency fund efficiently.
• Borrowing Strategically: Credit can be used to get more credit, which may improve your overall financial picture. The key is to make thoughtful choices about borrowing that may have an impact on your credit score. Aim to keep your debt-to-income ratio below 36%, make loan or credit card payments on time, and pay off debts early when possible. Consider saving about 20% of what you need for a large purchase before borrowing the rest. This practice can strengthen your borrowing position and feel rewarding. Ridgewood Savings Bank provides personal loans and affordable mortgage options with competitive rates, making it easier to borrow strategically and responsibly.
• Planning: You can work toward big life goals without extra stress by making plans in advance. It takes time to save the money you’ll need for a down payment on a house or college tuition. By taking the time to make a plan, consulting your budget, and saving money over time, you can improve your financial well-being and move closer to achieving your financial goals at the same time. Planning and patience can help you feel confident that you can meet your financial obligations today while saving for your future goals.

By taking proactive steps and leveraging resources like those offered by Ridgewood Savings Bank, you can improve your financial well-being and work toward greater peace of mind at every stage of life.

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