Personal finance

A COMPLETE GUIDE

When it comes to money we all want to feel secure and in control- but many of us also dream of one day not having to worry about money at all.

That’s where Financial Wellness and Financial Freedom come in. While they sound similar they mean very different things.

Financial Wellness is about how well you are managing your money right now. Financial Freedom is a long-term goal where you have enough money to stop working and still live comfortably.

Financial Wellness

Financial Wellness is about your overall financial health. It’s day-to-day ability to manage your income, expenses, debt and savings in a way that supports a stress-free secure life.

Financial Wellness involves

• Creating and sticking to a budget
• Building and maintaining an emergency fund
• paying off and managing debt
• saving for short and long-term goals
• Feeling confident and in control of your finances.

Financial Wellness is less about how much money you have and more about how well you handle it.

Financial Freedom

Financial Freedom is a long-term state where you have enough assets or passive income to support your lifestyle without needing to actively work.

Financial Freedom includes :

• No reliance on pay check
• Sufficient investment or income-generating assets
• you have control over your time and choices
• long term wealth building and independence.

Financial Freedom is about Independence not just stability.

FINANCIAL WELLNESS VS FINANCIAL FREEDOM: Which should you prioritize first?

When it comes to building a strong financial future, it’s easy to get excited about the idea of financial independence. But, before you sprint towards that goal, there’s a more immediate step Financial Wellness.

Start with Financial Wellness. It is the foundation of good money management covering budgeting, saving, managing debt and preparation for emergencies. Once financially well then shift towards Financial Freedom.

Trying to achieve Financial Freedom without Financial Wellness is like building a house without a foundation. It won’t hold up over time.

Financial Wellness and Financial Freedom are not opposite goals-they are milestones on the same journey. Financial Wellness gives you peace of mind today and Financial Freedom gives you options tomorrow. Start with wellness and freedom can follow.