Financial wellbeing – What it is and why you should care

by | Jun 30, 2024 | Finance and Business

We all deserve to have a healthy relationship with money and a sense of financial wellbeing, but for many of us, it can be hard to know where to start.

According to Neil McLaughlin, group head of personal and commercial banking at Royal Bank of Canada, achieving financial wellbeing begins with understanding what it means and then building on our knowledge to help us make more informed financial decisions.

To get us started on our own financial wellbeing journeys, McLaughlin answers three questions.

  1. What does financial wellbeing really mean?

    “Financial wellbeing is about your personal relationship with money and how it impacts your life. It isn’t just about having wealth. It includes everything that affects how you manage your finances, such as your income, cash flow and debts. It means making choices that allow you to have enough money to meet your needs today and to reach your goals in the future.”

  2. Why does it matter?

    “The importance of financial wellbeing extends beyond the numbers in your bank account. It influences your mental health, your relationships and your ability to make choices that align with your personal values and life goals. People who experience financial wellness are less stressed about money, which can lead to better sleep, more energy and stronger overall mental and emotional health.”

  3. What should I do next?

    “Do your research and look for tools and resources from a trusted financial institution. Whether you are just getting started, want to build a positive money mindset or need information to help you achieve a specific financial goal like managing debt, buying a home or saving for the future, having the resources that break down complex financial concepts into digestible, actionable steps can help.”

Everyone has their own personal journey with money, but by taking steps towards financial wellbeing, you can help lower your stress, build confidence and develop a healthy relationship with money.

Learn more at rbc.com/mymoneymatters

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