In broad terms, financial wellbeing is defined as when you are able to meet expenses and have some money left over, are in control of your finances and feel financially secure, now and for the future.
Notably, certain financial behaviours can positively impact your financial wellbeing. Key positive financial behaviours can include active saving and not borrowing for everyday expenses.
When looking at active saving, for example, this can help with the following:
- Protecting you in the event you were to experience an unexpected financial emergency.
- Paying for large purchases, and avoiding the accumulation, and repayment of, debt in the process.
- Building sufficient wealth to then utilise in funding your retirement lifestyle in your retirement years.
In this video, Saturday Night Live, with the aid of comedians, Steve Martin, Amy Poehler and Chris Parnell, provide a light-hearted skit about saving money and the use of credit for purchases.