Personal finances don’t have to be a grim spot in an otherwise bright life, regardless of one’s financial status. As Vanguard’s guide to financial wellness makes plain, following a few easy guidelines can help put investors on the path toward paying their bills, lowering their debt, and coping with an unexpected financial emergency—all while maintaining a firm grip on their retirement preparation.
The guide defines financial wellness as:
“The objective financial situation of a person, household, or family. It is the ability to meet current and near-term financial obligations and to be on track to meet your future goals.”
Of course, no one achieves financial wellness and is suddenly set for life as a result. Financial wellness is an ongoing effort that must be nurtured and maintained over one’s lifetime. To do so, our guide suggests small steps in three key areas: taking control of finances, preparing for the unexpected, and making progress toward goals.