“Financial wellness is a feeling of security about our financial future, our present and future financial obligations, feeling financially secure in the future and making choices that allow us to enjoy our life. Financial wellness is the main determinant of living a healthy life. Financial wellness means the ability to have a healthy financial life,” explained Prof. Dr. Isfenti Sadalia, ME (University of North Sumatra) in the Public Lecture on Financial Wellness: Managing Economic Life for Short and Long term by Department of Business Administration, Faculty of Social and Political Sciences, Universitas Diponegoro. The lecture was moderated by Robetmi Jumpakita Pinem, MBA (Undip), Thursday (12/5) ).

Prof. Isfenti said financial wellness referred to a mindset formed in the way a person evaluated their finances and how they felt. In addition, it was important to apply financial knowledge to manage their money effectively. Financial wellness was also supported by several economic principles of key behavioural including availability heuristics, cognitive convenience, and the “halo effect”.

Seven tips to improve financial wellness included creating finances that worked for us, considering making a cash flow only once, trying to save some money regularly, saving money regularly, preparing cash for emergencies, openly talking about finances with your partner, paying attention if we get a better deal, and not to be afraid to use a financial assistant.

“Learning the pillars of financial wellness to see where we stand is very important, then looking for ways to fill our gaps. By doing so, we will develop better discipline and control over our budget or savings for short and long term goals, as well as the financial risks and challenges of our lives. This will help to build a stronger foundation for a financial future, leading a happier and healthier life.” (Lin-PR)

Source: undip.ac.id