Hello Everyone. My name is Selestine Were and this is Tamaras Financial Planning & Consultancy the Home of your Personal Finance.

Financial wellness refers to a state of financial health and security where an individual has a clear understanding of their financial situation and feels confident in their ability to manage their money effectively. It encompasses several key areas:

Budgeting and Spending: Managing income and expenses efficiently, living within one’s means.

Saving and Investing: Building savings for emergencies, retirement, and other financial goals.

Debt Management: Handling and reducing debt responsibly.

Financial Security: Having adequate insurance and protection against financial risks.

Planning for the Future: Setting and working towards long-term financial goals.

Financial planning involves creating a structured plan to manage finances over a specific period. It includes setting goals, budgeting, investing, and preparing for major life events.

Financial Planning Focuses on the strategic and tactical aspects of managing finances, such as retirement planning, tax strategies, and investment choices.

It often involves working with a financial advisor to develop a personalized plan that addresses various aspects of one’s financial life.

Financial wellness is a broader concept that includes the overall feeling of financial security and well-being. It’s about how you feel and manage your finances on a daily basis.

It encompasses financial planning but also includes day-to-day financial habits, stress levels related to money, and overall confidence in managing finances.

It’s about the ongoing state of financial health and how well you handle the financial pressures and responsibilities in your life.

11 Steps To Achieve Financial Wellness at Age 28

1. Create a Budget:
2. Track Income and Expenses: Understand where your money is going and make adjustments to live within your means.

Allocate Funds: Use budgeting methods like the 50-30-20 rule to manage your spending, saving, and investing.

3. Build an Emergency Fund:

Save for Unexpected Expenses: Aim to set aside 3-6 months’ worth of expenses in a readily accessible account.

4. Manage Debt Wisely:

Pay down High-Interest Debt: Focus on reducing credit card debt and other high-interest loans.

Use Debt Strategically: If you need to borrow, choose low-interest options and manage repayments responsibly.

5. Save and Invest for the Future:

Retirement Savings: Start contributing to retirement accounts such as a pension plan or individual retirement account (IRA).

Investment: Explore investment options to grow your savings over time, considering your risk tolerance and financial goals.

6. Get Insured:

Health Insurance: Ensure you have adequate health coverage to protect against medical expenses.

Other Insurances: Consider other types of insurance such as life, disability, and property insurance based on your needs.

7. Set Financial Goals:

Short-Term Goals: Include saving for vacations, a new gadget, or an emergency fund.

Long-Term Goals: Plan for major milestones like buying a home, further education, or starting a family.

Continuously Educate Yourself:

8. Financial Literacy: Stay informed about personal finance topics through books, online courses, or financial workshops.
9. Adapt to Changes: As your financial situation and goals evolve, adjust your plans and strategies accordingly.
10. Monitor and Review Regularly:

Regular Check-Ins: Periodically review your financial plan and budget to ensure you’re on track.

Adjust as Needed: Make necessary adjustments based on changes in income, expenses, or financial goals.

11. Seek Professional Advice:

Financial Advisor: Consider consulting with a financial advisor for personalized advice and strategies, especially for complex financial situations or investments.

12. Focus on Mental Well-Being:

Reduce Financial Stress: Manage financial stress by staying organized, planning, and seeking support when needed.

Financial wellness is about overall financial health and confidence in managing your money, while financial planning is a more specific process focused on creating a structured approach to achieving financial goals. At 28, achieving financial wellness involves creating a budget, building an emergency fund, managing debt, saving and investing for the future, getting insured, setting goals, educating yourself, and periodically reviewing your financial situation. By taking these steps, you can build a solid foundation for long-term financial well-being.

Tamara’s Financial Planning & Consultancy is here to journey with you every step to your Financial wellness. Contact us through our whatsapp 0777675977 and call on 0722675977. You can also visit our website:  tamaras.co.ke

Thank you.