“Financial health is feeling secure about our financial future, being in present and future financial obligations, feeling financially secure in the future and making choices that allow us to enjoy life. Financial health is the main determinant in living a healthy life. Financial health is sometimes referred to as financial well-being, meaning the ability to have a healthy financial life,” explained Prof. Dr. Isfenti Sadalia, ME (University of North Sumatra) in the General Lecture on “Financial Wellness: Managing Economic Life for Short Term and Long Term Department” held by the Department of Business Administration, Faculty of Social and Political Sciences (FISIP), Diponegoro University (Undip) with moderator Robetmi Jumpakita Pinem, MBA (Undip), on Thursday (12/5).
Prof. Isfenti said financial health refers to a mindset that is formed from the way a person evaluates their finances and how they feel. In addition, it is important to apply financial knowledge to manage money effectively. Financial health is also supported by several key behavioral economics principles including availability heuristics, cognitive convenience, and the “halo effect”.
Seven tips to improve financial health include creating finances that work for us, consider turning finances only once, try to save some money regularly, prepare cash for emergencies, openly talk about finances with your partner, pay attention if we get a better deal, and do not be afraid to use a financial assistant.
“Studying the pillars of financial health to see where we stand is very important, then looking for ways to fill out gaps. By doing so, we will develop better discipline and control over our budget or savings for short term and long term goals, as well as the financial risks and challenges of our lives. These will help to build a stronger foundation for a financial future, leading a happier and healthier life.” (Lin – Public Relations)