How Sallie Krawcheck Defines Financial Wellness
When you hear the word “wellness” you may think about meditating before reaching for your morning coffee (or a matcha latte if you really feel like it) or taking a daily walk. But what we think or talk too little about wellness is the most important topic IMO, especially for women: financial wellness.
This is the part you might think of … huh? Did she just make that up?
I promise I didn’t. Prioritizing financial wellbeing is the best you can do for every aspect of your wellbeing. Without it, the foundation of your broader well-being is not stable.
Ellevest recently conducted a survey of 2,026 people aged 18 to 69 in the United States and we found that 67 percent of women worry about their financial health at least once a week. And 49 percent of women said their mental and emotional well-being has suffered from financial stress.
That is why we are declaring October 13th to be the first Financial Wellness Day! Because practicing financial wellbeing is a solution to the stress that money creates: simply taking action on your money problems is the main reason for reducing that stress. And that is exactly what financial wellbeing is – take action.
At Ellevest we define financial wellbeing as knowing what you have got, knowing where you are going and feeling good about it. And just as there are different components of physical wellbeing (eating well, drinking water, exercising, etc.), there are also different components to practicing financial wellbeing. We define them as:
Think of the most important building blocks that will help you achieve or maintain financial security – e. B. Check your account balances and spend less than you make (or work towards that goal).
This is the roadmap – the schedule and strategies – to get you and your money where you want to be in life.
This is all about having a healthy relationship not just with your money, but your ability to manage it as well. This can, of course, begin by forgetting all of the unhealthy and harmful money lies women are told pretty much from birth.
If this all sounds a little like I don’t know how I’m trying to sell you the financial equivalent of a healthy bath or something, let me give you some examples of what practicing financial wellness looks like in real life.
Perhaps you’ve negotiated your first raise and title. Or pay off your student loans three years early and wow. That. Felt. Good. Or you have decided to cancel the subscription that you have not used for months and set up automatic payments to an investment account. All of these things count as practicing financial health. It means enjoying the positive experience that your financial decisions pave the way for.
The truth is, a lot of women haven’t gone out much lately when it comes to their financial health. It makes sense that women are more afraid of money than ever before. First of all, women earn less than men – and we tend to stop getting pay increases a decade earlier. Women also invest less than men, so women on average only own 32 cents of every dollar that white men own. For women of color, it’s less than a dime.
Then there is the pandemic where women played social safety nets – many juggled work and homeschooling, experienced setbacks in their careers, or even lost their jobs. Plus, 49 percent of the women we surveyed literally lose sleep because of their finances. So we know that financial stress has a serious impact on your mental and physical health.
Many women shy away from investing money and taking action because we have these blockers – we think it’s too time consuming, or we think we’re not good at money, or it will take forever to get there get where we want to go. And unfortunately there is no clock on the wall that says: If you don’t get your credit card paid off by this date, it will cost you * that much *. Often times there is no trigger for us to just sit down and do the damn thing.
That’s why we’re bringing you financial wellbeing, and we’re inviting Marie Claire readers (and your friends) to sign up for a free Ellevest workshop led by a CFP® expert to understand your current spending, your money mindset define and define your financial goals, and more.
We also believe that everyone deserves financial health. And at Ellevest, we want to help you find it. Here’s a month free and $ 20 to start using code DOWELL.
Happy Financial Wellness Day. (You can do it.)
Ellevest is giving Marie Claire readers $ 20 to start investing today. Go and invest!
Sallie Krawcheck is the CEO and co-founder of Ellevest, a finance company made by women for women. She is the former CFO of Citi and the former CEO of Merrill Lynch and Smith Barney.
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