The Financial Wellness Wheel: Your Guide to a Balanced Financial Life

Financial health isn’t just about saving money or investing every dollar. It’s about finding balance, feeling secure, and having the confidence to handle life’s curveballs. It’s personal and unique to your values and goals.  For some, financial wellness might mean a hefty emergency fund, while for others, it’s more about retirement planning or getting debt under control. The Consumer Financial Protection Bureau, combined with a review of research and consultation with leading experts, found that financial well-being includes the following four elements:

1. Having control over day-to-day and month-to-month finances.
2. Having the capacity to absorb a financial shock.
3. Being on track to meet your financial goals.
4. Having the financial freedom to make the choices that allow you to enjoy life.

Introducing the Financial Wellness Wheel and how it can help

The Financial Wellness Wheel is a self-assessment tool that can help you evaluate your current financial situation. The wheel is divided into eight key areas, each representing a spoke in your financial life. Balancing all the spokes ensures a smoother financial performance. The eight categories are:

1. Financial Goals: Are you setting clear and achievable goals?
   
2. Budgeting: Does your budget align with your income and priorities?
   
3. Emergency Savings: Could you cover unexpected expenses without stress?
   
4. Low Debt: Are you paying down balances responsibly and efficiently?
   
5. Living Within Your Means: Is your lifestyle sustainable on your current income?
   
6. Retirement Savings: Are you preparing for the future you envision?
   
7. Credit Score: Does your score reflect healthy financial habits?
   
8. Insurance Coverage: Do you have protection for life’s uncertainties?
   

Each category offers a snapshot of your financial well-being, and the ultimate goal is balance, not perfection.

Why Evaluate Your Financial Wheel?

Assessing your Financial Wellness Wheel helps you identify both strengths and areas for improvement. Awareness is the first step toward meaningful action. While the wheel isn’t a substitute for professional financial planning, it provides a practical starting point. The exercise encourages progress, not perfection, with a focus on your personal definition of financial wellness.

Getting Started

1. Score Yourself: Rate each category from 0 (dissatisfied) to 10 (fully satisfied).
   
2. Personalize It: Add categories or relabel sections to reflect your values.
   
3. Reflect: What would a perfect score look like? What changes would bring you closer to it?
   
4. Take Action: Select one area to improve. Break goals into short, medium, and long-term steps.
   

The Road Ahead with Financial Wellness

The Financial Wellness Wheel acts as an evaluation of your current state of financial health. By pinpointing both your strengths and areas for growth, this self-assessment empowers you to set realistic goals and build a stable financial future. To get started, access the Financial Wellness Wheel and take the first step toward a balanced, secure financial foundation.

Rochelle Allen, Accredited Financial Counselor, Program Coordinator for Empowering Financial Wellness USU Extension program