What Is Financial Wellbeing?

Updated: Jan 17

Financial wellbeing can be summed up by two things: firstly, security - both now and in the future. Secondly, it’s about knowing what makes us happy, and having financial goals in place to achieve that happiness. It’s not just about your current financial position, it’s also about your long-term ability to be financially well.

Everyone is different, has different incomes, outgoings, family situations, lifestyles and financial goals. That means everyone’s journey to financial wellbeing is personalised based on their situation, goals and needs.

Professional advice is invaluable as those advisers can help you build your financial future by

highlighting areas that may need improvement. Plus, they can give you a realistic and actionable plan to reach your goals. Unorganised finances can cause a lot of stress, so having someone to organise them for you gives you one less thing to worry about. Advisers can also guide you through changes and challenges such as starting a family or a new job.

In order to achieve financial wellbeing, it’s useful to visualise building blocks to get you there. These are money building blocks, and mindset building blocks. Even if you have ticked off your money building blocks, without focused mindset, you won’t be able to achieve optimal financial wellbeing - which is ultimately the goal!

So, let’s take a look at these building blocks. Firstly, we have five money building blocks:


Emergency fund

Manageable debt

Long-term savings

Valuables that make us feel secure e.g. property

Then we have five mindset building blocks:

Knowing what makes us happy

Visualisation of our future self

Smart social comparisons

A long-term plan


Score yourself up to 10 points for each of the blocks (so maximum 100 points available) to get an idea of your current financial wellbeing, and what you can improve on. The goal is to score well across both the money and mindset blocks, rather than just in one category - in other words, to become an ‘all-rounder’.

To learn more about financial wellbeing and how you can improve yours, get in touch with Kindred Estate Planning today.