Hello and welcome to the Meaning of Money podcast. I'm your host, Shelitha Smodic, certified financial planner and financial educator. Today we're talking about financial well-being, which for me is the entire point of educating yourself about money. Let's get started. The first thing to know about financial well-being is that there is no single definition. It can be thought of objectively or subjectively. Some objective measures of financial well-being include financial ratios like debt-to-income or a person's net worth. You can also measure financial well-being more subjectively by considering things like how a person feels about their money, such as their satisfaction with their financial life or their perception of their ability to manage their financial responsibilities. Financial worry or anxiety is actually another major component often considered when discussing financial well-being. Financial anxiety lowers a person's sense of financial well-being. So if a person is regularly stressed out about their money or their financial life more broadly, they are likely not fully satisfied with their financial life and are likely experiencing lower financial well-being. In 2015, the United States Consumer Financial Protection Bureau proposed a more comprehensive definition of financial well-being based on current research on the topic as well as extensive interviews with both consumers and financial experts. This research led to their own definition of financial well-being, which is a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life. I love this definition because it's a multi-dimensional way to think about financial well-being. This definition covers four key elements to financial well-being: having a sense of control, having the ability to navigate financial emergencies or life transitions, being on track to meet your financial goals, and having the freedom to enjoy your life. The second important thing to understand about financial well-being is that it's not black and white. You do not simply have financial well-being or don't have financial well-being. It does not have a specific dollar limit or income level associated with it. It's also not static. Just because a person currently has a high sense of financial well-being does not mean it will always be this way, or if a person is not currently experiencing financial well-being, it does not mean that they will never feel that way. Financial well-being is a spectrum, and various factors increase and decrease a person's sense of financial well-being, such as financial knowledge, financial behavior, goal setting, and your phase of life. Financial well-being is the ultimate goal of financial education and managing your money. And I think that working to build a financial life that allows me peace of mind and joy is a worthy investment. This brings us to the end of today's episode. If you find our podcast valuable to building the financial life you want, please subscribe, leave us a review, or share with others who may find this information insightful. And, of course, you can always learn more at the website meaningofmoney.com. Bye for now.