What is Financial Health?

This is part three of a five series blog post discussing my five components to "true" wellness.

So far I have discussed faith and family as a critical component of genuine health.  Today I want to discuss how our finances are crucial to the overall picture of health as well.

What is financial health?

I don't know that there is a specific answer to this as everyone has different financial goals and dreams.  I don't see financial health as big pot of money or a vacation home on the coast.  I also don't think it's about who has the highest paying job or largest retirement account.

For me, financial health is simply living each day without the stress of financial obligations weighing you down.

I am a huge fan of Dave Ramsey.  I started listening to The Dave Ramsey Show and reading his books in 2007.  Dave teaches a basic principle that most people in this country can't grasp (especially our lawmakers), live on a budget, get rid of debt, save money, plan for your future, and be generous.

The principles themselves are very simple, but following through is a different story.  Just like most things in life, it takes hard work, sacrifice, and commitment.

In 2007 my wife and I had well over 10 credit cards and a nice pile of debt.  I was starting to make more money at that time, but we were still making no progress financially.  We had no real budget and bought things on impulse.  Since then, we have paid off all of our credit cards and are finally making some really good strides.

We are far from perfect and slip up now and then, but with a monthly budget and long-term goals we are definitely heading in the right direction.

What does all this mean to you?

Since we started taking our finances seriously, not only has the debt come off, but so has the stress of day to day living.  We have a plan and a plan gives you freedom financially.

It doesn't matter if you make $20,000 or $200,000 a year, anyone can begin to achieve financial health by having a plan with your money.

Money problems cause stress and stress causes anxiety, difficulty sleeping, family issues, bad eating habits, etc.  Often times money issues are not the root problem.  There is probably something deeper leading to stressful money issues.  Dave Ramsey contends that money problems are usually the symptom of this bigger problem.  Maybe it's work ethic, communication with your spouse, lack of discipline, etc.  Any of these things can be rectified if there is a will.

What can you do?  For starters, create a plan of where you want to go financially.  As Steven Covey states, "Start with the end in mind."  Make sacrifices today so you can succeed long-term.  It won't happen overnight, but you will get there.

I recommend that everyone read "The Total Money Makeover" by Dave Ramsey.  It gives you the playbook to achieve the financial peace we all desire.  It rocked my world and helped me understand that through "baby steps" much can be achieved.

I wish you much success in this journey.