Wednesday, 9 January 2013

Journal 4: Financial Wellness




There are many different form of wellness and varying definitions on these forms. Our group chose to highlight financial wellness. We needed to be aware of our own personal financial wellness and to set goals for improvement. Financial wellness can be defined as being aware of one’s financial assets and being in control of the intake and outflow of capital resources. To be financially well, one must have a steady source of income and be able to regulate how much is spent in order to ensure that extraneous debts are not acquired. However, in life, debt is almost always an inevitable reality so an individual must be able to make a plan to control and repay this debt in a timely and efficient manner.
My personal goals during the five days I was monitoring my financial wellness were similar to the definition of financial wellness mentioned above. This year, I got a flexible, well paying job in which I work around 5-8 hours a week, although occasionally it can be upwards of 15 hours. I made sure I was making at least twice as much as I was spending, and I was successful in this endeavor. However, I was still surprised at the amount of money I spend in my daily life. Looking past the five day period, I saw that I had made a total of approximately 870$ since the beginning of my job, which was the end of September, through to late November. This struck me a being a very decent amount of money, however I was shocked when checking my bank balance to see that I had spend upwards of three hundred and fifty dollars in that same period without much to show for it.
Seeing how much money I actually spent was a real eye opener for me. Consequently I made a goal for myself to keep receipts for things and keep a track of my expenditures. I pay half my car insurance and my cell phone bill which together amounts to around 80$ a month. Other expenses of extra food, clothes, and personal amenities accounted for this money spent, however it was still a shock. The second half of keeping a track of expenses is to control expenses, and cut extraneous or unnecessary spending. To deal with this, I looked at my wants, my needs, and what was really worth it. Although I don’t need a cell phone or the ability to drive, they are luxuries that I do not want to do without. To keep costs low however, I do try to bike when I can to save on gas money. For example, driving across town to work really only takes a minute less time than biking—and often longer than biking during rush hour. Unless it is colder than -5*C, I try to ride my bike. Driving across town and back is extremely inefficient due to all the stopping and starting and leaves a noticeable dent in the fuel level indicator. Another way I have been saving money has been by being less lethargic in the mornings, thus giving myself time to make a lunch. Previously, I have been so slow at getting up, that I end up just giving to go buy myself a lunch because I simply do not have time to make one. Waking up an extra 10 minutes early has put an end to this problem.
Throughout this assignment, I was acutely aware of the personal psychological impact financial wellness can have on a person. My realization at the amount of money I was spending made me feel stressed out and desperate. However, when I planned out my finances, the stress became much more manageable and I realized that in the long run, the money I was concerned bout was fairly inconsequential and would be recovered in a short period of time.
By the end of the five days, I can’t say that I felt better about my financial wellness. The realities of how much I spend put a damper on my happiness over planning and setting goals. However, I have a clear plan for the future and I appreciate the need for saving so I am confident that I will be in a very good financial shape during and after university. I plan to, no matter what deposit 100$ a month into a medium risk mutual funds account when I turn 18. I will continue putting money in this forever and it should eventually rack up a significant sum of money. Overall, these past few days have led me to be more aware of my state of financial wellness and I will be better off for it now, and in the future. 

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