Money Stress?
Here's What Financial Wellness Really Means...
Table of Contents
Financial wellness is in crisis. If you aren’t happy with how you manage your money, you’re far from alone—around 20 million adults in the UK say they don’t feel confident managing their finances. Many people are looking for ways to make their money work better for them. Especially when facing major life events (like buying a home, getting married, or having a child) that shine a spotlight on their finances.
In this comprehensive guide, we’ll explain what financial wellness is, why it matters, and how you can start building a financial life that supports you, not the other way around.
In this first episode of the Financial Wellness Quest podcast, I explore what financial wellness really means — and why building it can change your life.
What is Financial Wellness?
At Financial Wellness Quest we believe that financial wellness is personal – and it’s about more than just money. It’s about peace of mind. Your financial wellbeing is built around your own goals and lifestyle. It’s knowing:
- Where your money is going
- That you have a plan for the future
- That you can handle unexpected bumps in the road.
Most importantly, anyone can achieve financial wellness. It isn’t about being rich. Instead it focuses on learning to manage money well, live with intention, and build a buffer for the future.
Definitions of Financial Wellness
There are lots of definitions of financial wellness. One of the most comprehensive comes from the U.S. Consumer Financial Protection Bureau (CFPB),. It defines financial wellness (or “financial well-being”) as having both financial security and the freedom to make choices in life, today and in the future. According to the CFPB, you have financial well-being when you:
Have control over your day-to-day finances (you’re able to cover your living costs and bills comfortably)
Have the capacity to absorb a financial shock (you’ve built some savings or safety nets to handle emergencies)
Are on track to meet your financial goals (whether that’s saving for a home, education, or retirement, you’re making progress)
Have the freedom to make choices that let you enjoy life (your finances aren’t so strained that you have to sacrifice all quality-of-life decisions)
In the UK, the Money and Pensions Service (MaPS) describes financial well-being in a similar way: feeling secure and in control, making the most of your money day-to-day, being able to deal with the unexpected, and being on track for a healthy financial future – in short, being financially resilient, confident, and empowered.
Why Financial Wellness Matters
Why should you care about financial wellness? Simply put, your financial well-being has a big impact on your overall quality of life. Money is a leading source of stress for many people, and that stress can spill over into your health, work, and relationships. Research shows that people who feel financially well are less anxious and enjoy better overall well-being. However, financial stress can contribute to mental health issues, relationship strain, and even physical health problems. In other words, achieving financial wellness isn’t just about money – it can make you happier and healthier in general.
Our Finances are Complicated to Manage
Our financial lives have changed dramatically over the last 20 years. Gone are the days of a job for life, a familiar bank manager, or a guaranteed pension. Today, we manage portfolio careers, compare financial products on our own, and often learn the ropes of budgeting, saving, and investing through trial and error.
That’s a lot to take on — especially when we haven’t been taught how.
Financial stress affects more than just our bank balances. It impacts our sleep, our mental health, our relationships, and our sense of security. That’s why building financial wellness isn’t just a “nice to have” — it’s essential for your overall wellbeing. On the positive side, when you have your finances under control, you tend to experience less stress and more peace of mind, which means better sleep, better health and better relationships
Living on the Edge
The vast majority of people regularly worry about money. One 2024 study of UK residents (including many with above-average incomes) found that 81% say they feel stressed or worried about money on a regular basis.
Financial anxiety isn’t limited to any one income level or background – it affects almost everyone in some way. This is why financial wellness has become such an important topic. Improving your financial well-being can significantly reduce the day-to-day stress that so many people are feeling.
With the cost of living rising and economic uncertainties, more people are finding themselves on shaky financial ground. Even before recent economic challenges, a huge number of people were not financially secure. For instance, 11.5 million people in the UK had less than £100 in savings to fall back on, and 9 million often had to borrow to buy food or pay bills. Many households are one unexpected expense away from trouble. Financial wellness aims to prevent that by building buffers and resilience.
Life Events and Financial Wellness
Major life events are often a wake-up call for why financial wellness matters. If you’re anticipating a big life change – planning a wedding, buying a home, starting a family, or retiring – you’ve likely realized how important financial preparation is. It can be daunting to face the costs of a down payment or the expenses of raising a child if you haven’t planned ahead. Being financially well means you’re better prepared for those important moments in life, so they’re exciting milestones instead of sources of panic. For example, having a habit of saving can help you afford the house you want or ensure you can enjoy retirement comfortably Financial wellness gives you options and confidence when navigating life’s big events.
There are even broader benefits to financial wellness. It’s hard to focus on your job or enjoy time with family if you’re constantly worried about overdue bills. The UK government has recognized the importance of this issue by launching a National Strategy for Financial Wellbeing to improve the nation’s financial health by 2030 .
Why You Don't Need to Be Rich
Contrary to popular belief, financial peace doesn’t come from earning six figures. In fact, 47% of people earning over £100k still worry about money.
Why? Because income doesn’t guarantee wellness — habits do.
It’s less about how much you earn and more about how effectively you manage what you have. Financial wellness isn’t determined by income level – it comes from managing and utilizing your resources wisely to build a secure future. Improving your financial well-being is achievable with the right approaches.
A powerful example comes from the book The Millionaire Next Door, where researchers discovered that most millionaires lived in modest neighborhoods, not luxury ones. They weren’t high earners with extravagant lifestyles. They were consistent savers who lived below their means and focused on long-term goals.
That’s the heart of financial wellness: values-driven choices, smart systems, and confidence in your decisions.
Skills To Build Financial Wellness
So what does financial wellness actually look like in practice? At Financial Wellness Quest, we focus on three foundational pillars:
Where Do You Start?
Ask Yourself Some Key Questions:
- Can I comfortably cover my monthly expenses with my current income? (Or do I frequently run short or rely on credit to get by?)
- Do I have any savings set aside for emergencies or future goals? (Even a small amount is a start – having something is better than nothing.)
- Am I managing my debts effectively? (For example, paying credit card balances on time, not feeling overwhelmed by loans.)
- Do I feel in control of my money, or do I lose track of where it goes?
- Am I taking steps toward future financial goals like retirement, home ownership, or my children’s education?
If you find yourself answering “no” or feeling unsure about many of these questions, it can highlight areas to improve. For instance, answering “No, I don’t have an emergency fund” indicates a need to focus on building savings, whereas “No, I only pay minimums on my credit cards and my balances keep growing” points to working on debt management. This informal check-in can already give you a sense of your financial wellness level
Find Your Financial Wellness Score
Like any journey, you begin where you are. The most important step is understanding your starting point — and that’s where our Financial Wellness Quiz comes in.
At Financial Wellness Quest, we believe financial wellbeing isn’t just about numbers — it’s about clarity, confidence, and control.
Our unique approach is built around three pillars:
🔍 Know Well — Build awareness
📋 Plan Well — Set your direction
⚙️ Manage Well — Take action and stay consistent
Through our Financial Wellness Quiz, we assess how you’re doing across these areas and give you a score that maps to one of six levels. But this isn’t a test. It’s a guide — designed to help you understand your strengths, identify opportunities for growth, and take meaningful steps forward.Whether you’re a Curious Seeker just getting started or a Luminary leading the way, the quiz is a powerful tool for self-awareness and progress.
First Steps to Improve Your Financial Wellness
Understanding what financial wellness is and why it’s important is the first step. Financial wellness is a journey – it’s something you can actively work on and improve over time.
Here are some general strategies that pave the way toward greater financial wellness:
Learn More about Money
- Knowledge is power in personal finance. Commit to learning a little more about money management each week. This could mean reading blog posts (like this one!), books, or using resources from organizations like MoneyHelper (a UK government-backed service). Over time, you’ll become more confident in topics like budgeting, investing, or pensions.
Set Small Goals
- When you look at everything you could be doing (budgeting, paying off debt, saving for retirement, etc.), it can feel overwhelming. The trick is to start small. Pick one or two small goals to focus on first. For example, set a goal to save an extra £50 per month or to cut back your discretionary spending by 10%. Maybe set a goal to pay off one credit card, or to increase your pension contribution by 1%. These bite-sized goals are more attainable and will give you quick wins.
Start Building Money Habits
- Consistency is key. Aim to build habits such as: reviewing your budget weekly, automating a bit of savings every payday, or paying bills as soon as they arrive. Habits remove the day-to-day willpower required to manage money – they turn good choices into automatic behaviors. For instance, if you get into the habit of “pay yourself first” (putting a set amount into savings when you get paid), you’ll steadily grow your savings without having to think about it each time.
Tackle the Stress Points
- Identify what causes you the most financial stress and tackle it head-on. Worried about an emergency expense? Focus on building that emergency fund. Losing sleep over debt? Make a concrete debt payoff plan (e.g., the snowball or avalanche method) and consider talking to a free debt adviser if needed. Overwhelmed by not knowing where to start? Try speaking with a financial coach or using a budgeting app for guidance. By actively addressing the biggest pain point, you’ll gain momentum and relief.
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Next Steps and Resources
Achieving financial wellness is a journey, but the great news is you don’t have to go it alone. There are plenty of resources and tools to help you along the way. Here are a few next steps you can take right now to continue your financial wellness journey:
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Final Thoughts
Financial wellness is about achieving peace of mind with your money. It’s the confidence that you can handle your financial obligations today, that you’re prepared for tomorrow, and that you can enjoy life without constant money worries. By understanding what financial wellness means and taking even small steps to improve your finances, you’re investing in yourself and your future security.
Remember, everyone starts somewhere – even if you feel behind, it’s never too late to start improving your financial well-being. Celebrate the small wins (like paying off a credit card or hitting a savings milestone), and don’t be too hard on yourself when there are setbacks (unexpected expenses happen!).
Over time, those small changes will compound into a noticeably stronger financial foundation. The effort you put in will reward you with reduced stress, greater freedom to make life choices, and the knowledge that you’re in control of your financial destiny.
So take that first step – whether it’s making a budget, opening a savings account, or taking our quiz – and commit to your financial well-being. Your future self will thank you for it, and you’ll likely find that as your financial wellness improves, so does your overall sense of wellness and happiness in life. Here’s to making money a source of empowerment rather than worry!
Resources to Help You Build Financial Wellness
Affiliate Disclosure: Some of the links in this post are affiliate links. This means if you click through and make a purchase, I may earn a small commission — at no extra cost to you. I only recommend tools and resources I personally use or genuinely believe will add value to your financial wellness journey. Thank you for supporting this site.
If you’re ready to take your next steps on the Financial Wellness Quest, here are some helpful tools and resources to support your journey:
Credit Monitoring
👉 Experian — check your credit score and monitor your credit report
👉 ClearScore — free credit score monitoring for UK users
Recommended Reading
👉 Your Money or Your Life — Vicki Robin
👉 The Psychology of Money — Morgan Housel
Helpful Organisations
👉 StepChange Debt Charity — free debt advice and support in the UK
👉 Money & Pensions Service — tools and guides for improving your financial wellbeing
Sources:
- Money & Pensions Service – What is financial wellbeing?(definition of financial well-being as feeling secure/in control)
- Consumer Financial Protection Bureau – Financial well-being definition and criteria(having control, capacity for shocks, meeting goals, freedom to enjoy life)
- Money & Pensions Service – Financial wellbeing in the UK, key stats(millions with low savings and high borrowing; lack of financial education)
- Arbuthnot Latham – Financial anxieties research 2024(81% of surveyed individuals regularly worry about money)
- Fidelity International – “What is financial wellness?” article(financial wellness varies by person, four core areas: budgeting, debt, saving, protection; importance of small steps)
- FinCap (Money Advice Service) – UK Financial Capability Survey(39% of adults not confident managing money)