Financial Wellbeing


It is a proven fact that financial issues have a significant impact on our lives and stress levels.

According to research conducted by Gallup in 150 countries, there are 5 main areas that affect our well-being and Financial Wellbeing is one of them.

There are many studies on how the stress caused by financial issues affects work life.

A study conducted by PWC in 2022 on around 3,200 employees shows that financial stress has a significant impact on sleep, mental health, self-confidence, physical health, relationships at home and engagement at work. No matter how much money we have, we sometimes worry about not being able to meet our personal budget, borrowing money to invest, not being able to save for our future, not being able to fund our children’s education or our own retirement plans.

Here is the 4-step plan I recommend to address these concerns:

  1. Financial Literacy: First, there are many financial concepts that we need to know in order to make the right financial decisions based on our risk profile. A very simple rule of thumb is that we are stressed by things we are exposed to but do not understand. Therefore, if we have enough knowledge to understand the impact of the financial events happening around us, in the organization we work for, in the country we live in, we will feel more comfortable and make better decisions. Ask yourself honestly; do you really know these concepts well? Budget, income/expense balance, inflation, interest, cash flow, retirement plan, savings account, repayment plans (when borrowing) with year/rate comparisons, investment instruments and your risk profile, your credit rating. In a survey conducted by Standard & Poor’s in 144 countries with 150 thousand people, those who know at least 3 of the concepts of interest, compound interest, risk diversification and inflation well enough to explain them are defined as “financially literate”. According to this criterion, Turkey ranked 120th.
  2. Financial Awareness: To protect and improve our financial well-being, knowing financial concepts alone is not enough. The 2nd step in the 4-step plan I mentioned above is “Financial Awareness”. Applying our financial knowledge, being aware of the financial risks and opportunities that can affect our lives, setting personal financial goals, saving for emergencies, etc. affects our financial well-being. For example, it is financial literacy to know that individuals have a credit score called a “Findeks Credit Rating” that shows their creditworthiness. However, it is financial literacy to know that if this score is high (between 1500-1900), you may be offered payment facilities or borrowing advantages based on your score when taking a loan from the bank or buying high-priced goods such as white goods and mobile phones.
  3. Financial Behavior: As in all areas of our lives, what really impacts our lives is our ability to translate our knowledge and awareness into action. This is also true in financial matters. With our spending and saving habits, the way and frequency with which we track our income and expenses, the frequency of our credit card use and payment habits, the habit of thinking before we spend, etc., we hold the management of the money we have, or even the money we do not have yet, in fact the management of our lives in our hands. As a result of these actions, we achieve tangible results by protecting and increasing our income against inflation through the right investment decisions, or by making productive expenditures that contribute to our quality of life. For example, if we manage our cash flow properly and pay off our mortgage and credit card debt on time, our credit rating will be high.
  4.  Financial Satisfaction: The more satisfied we are with the outcome of our behavior in financial matters, the greater our financial well-being.
    The more we can increase it. If my money;
    – If I spend it on enjoyable life experiences, such as vacations with my loved ones
    – If I can comfortably meet my basic needs and those of my family
    – I can save regularly regardless of the amount
    – If I can earn a good return on my investments
    – If I can set aside some of my money to help people who need it and have no money
    – If I can improve my retirement plan as much as possible
    – When I contribute to both my budget and a sustainable world by avoiding unnecessary spending, I feel much better mentally and spiritually, and my financial stress is reduced.

Peace be with you!

Dilek Karaca Bali

Wellbeing Coach