Global Wellness Digest

Financial Wellness Basics

There are 3 ways to conduct our day-to-day financial affairs and only one of them is a pillar of financial wellness. (A) Live below your means – this philosophy is based on simplicity, contentment and prudence. Modern society and social media put pressure on us to constantly upgrade and keep up with our friends and relatives. There is no need to have the latest iPhone, the limited-edition handbag or to buy the new car model. Living below your means gives you surplus money every month and foster a strong sense of financial security for you and your family. (B) Live within your means – this philosophy means we spend all the income we have each month, leaving no surplus for long -term investment, savings or emergencies. It is okay but not prudent as you live paycheck to paycheck. (C) Live above your means – this philosophy means you live beyond your current income by leveraging credit cards and credit lines and incurring debts to fund your lifestyle and expenditure. For example, the interest rate amongst Singapore banks for unsecured credit is between 20% to 27% per annum. Your instant gratification and desire to impress others will kill you slowly as your debts and high interest payments balloon over time. So which of the above is a pillar of financial wellness?

” There are 2 ways to get enough. One is to accumulate more and more. The other is to desire less and less.” – G K Chesterton