myFinancial Life Planning™ Assessment
The term “financial wellness” has emerged in recent years as a descriptor of an individual’s overall financial health and well-being. However, financial wellness consists of more than just our perceptions and feelings about our own financial health. The concept of authentic financial wellness is measured by a combination of factors including the overall satisfaction with your current financial situation, actual financial behaviors (i.e., budgeting, saving, debt reduction), your money mindset, financial knowledge, and your financial “breathing room” (a.k.a. “objective financial status”).
The myFinancial Life Planning™ Assessment was created as a measurement tool for individuals and financial planning professionals to use to track financial health.
Financial Wellness Capital (FinWellCap)
As a financial planner with an academic background in clinical psychology, I’ve noticed many parallels between the fields of positive psychology and personal financial planning. The main focus in the arena of positive psychology is the exploration of how people transition from functioning to flourishing and living a fully enriched life. Just as our financial wellness is a contributing factor to our overall well-being, it is important to understand the impact that positive psychology can have on our personal finances as well.
Positive psychological capital is defined as the positive and developmental state of an individual. Financial Wellness Capital (FinWellCap) refers to positive psychological attributes that are associated with the development and maintenance of your overall financial well-being. The components include hope, financial self-efficacy, financial resilience, and optimism.