Financial Well-Being Check-Up

What is financial wellbeing?

Well-being has been defined as feeling happy, healthy, having meaningful relationships and a sense of purpose. Financial well-being has been defined, through research conducted by the Consumer Financial Protection Bureau, as a state of being where four central elements are present:

Having control over day-to-day, month-to-month finances;
Having the capacity to absorb a financial shock;
Being on track to meet financial goals; and
Having the financial freedom to make the choices that allow you to enjoy life.

Financial well-being is different for each individual and is tied to your values and the choices you make with your money. The opposite of financial well-being is financial stress which can have a negative impact on your health and your relationships.

How can I assess my financial wellbeing or personal financial fitness?

You can start by taking this short quiz:

I am happy with my ability to meet my financial obligations Y/N

I am happy with my spending habits Y/N

I am happy with the level of debt I carry Y/N

I can cover expenses for more than a month if I had a large, unexpected expense or lost my job Y/N

I save and invest for my future on a regular basis Y/N

I have an investment plan Y/N

I have adequate insurance coverage (life, disability, liability, home) Y/N

I have estate planning documents (Will, Power of Attorney, Health Care Directive) Y/N

I have the freedom to make choices that allow me to enjoy life Y/N

I can have productive money conversations in the relationships that are important to me Y/N

The more “Yes” answers you have, the easier it will be to achieve a higher level of personal financial fitness.

Next you can gather some facts to better understand your situation. It is similar to assessing your physical fitness before starting a fitness program by checking your weight, heart rate after moderate exercise or how long it takes to walk a mile. There are four numbers that will give you a good initial overview of your financial situation.

Your net worth (what you own and what you owe)
Your credit score
Your short-term emergency savings
Your investments and long-term savings

Look for future posts where we will walk you through how you can determine your own four-numbers.

Disclosure:

Marshall Financial Group, Inc (“Marshall Financial”) is an SEC-registered investment adviser with its principal place of business in Doylestown, Pennsylvania. This newsletter is limited to the dissemination of general information pertaining to Marshall Financial Group’s investment advisory services. Investing involves risk, including risk of loss. References to market indices are included for informational purposes only as it is not possible to directly invest in an index. The historical performance results of an index do not reflect the deduction of transaction, custodial, and management fees, which would decrease performance results. It should not be assumed that your account performance or the volatility of any securities held in your account will correspond directly to any comparative benchmark index.

This newsletter contains certain forward‐looking statements (which may be signaled by words such as “believe,” “expect” or “anticipate”) which indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward‐looking statements. As such, there is no guarantee that the views and opinions expressed in this letter will come to pass. Additionally, this newsletter contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility, therefore.

For additional information about Marshall Financial, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Please read the disclosure statement carefully.

August 2024 Market Commentary: Click here to read

Financial Well-Being Check-Up

What is financial wellbeing?

How can I assess my financial wellbeing or personal financial fitness?

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