Fifth Pillar is Financial Well-Being
Financial well-being is a state of being where a person can fully meet their current financial obligations, feels secure about their financial future, and has the freedom to make choices that allow them to enjoy life. It encompasses having control over day-to-day finances, the capacity to absorb a financial shock, and being on track to meet financial goals.
Key components:
- Control over daily finances: Being able to manage current bills and monthly expenses without undue stress.
- Capacity to handle emergencies: Having a safety net, like an emergency fund, to handle unexpected events such as job loss or a health issue.
- On track for future goals: Having a plan and progress towards future financial objectives, including retirement savings.
- Financial freedom: Having the flexibility and choice to pursue goals and enjoy life without constant financial worry.
Achieving higher Financial Quotient (FQ) impacts financial well-being positively that can lead to reduced stress and better mental and physical health