What does financial well-being mean?

Consumers can simplify financial choices by using shortcuts, common rules, or “rules of thumb.” These are guidelines a person can use to make complicated day-to- day financial decisions easier.  Many are frustrated by what they see as unrealistic goals stated in common rules, as they struggle with competing priorities across many different dimensions of their financial lives.

In the  Consumer Financial Protection Bureau’s definition of financial well-being, consumers:

• Have control over day-to-day, month-to-month finances.
• Have the capability to absorb a financial shock.
• Are on track to meet financial goals.
• Have the financial freedom to make choices that allow one to enjoy life.

Suggestion: Keep track of everything you spend for a month to get a sense of where your money is going.