Business Building Corner

Reaching and maintaining financial wellness

January is Financial Wellness Month. Many things make up “financial wellness” but the key to maintaining solid ground is to know how to spend less than you earn.

According to Steven Handel, an author who writes about psychology and personal development, “money is just a tool we use to exchange value with one another.” But like all tools, it can be used properly or really poorly. Some of us have a lot of money, but when we spend it impulsively and with only short-term gratification in mind, we can often find ourselves less happy with what we have in the long term.

At the same time, completely avoiding material needs can be unrealistic and just as unsatisfying. A balance needs to be met by coming to terms with our material needs without being overwhelmed by them. If you take a look at the LPGN logo, there are five arrows that represent the five areas of our lives that we can transform. One of these arrows represents positive change to reach financial independence. That needs to be in balance with positive changes to health, emotions, spirit and personal ethics.

Debt is one of the biggest problems when it comes to financial wellness. People either buy a lot on credit or take risks that they think will produce big financial returns, but don’t. The result can be that they find themselves in debt, paying interest that builds over time. Of course the best way to avoid debt is to not go into debt in the first place. This ultimately boils down to developing sound spending habits. By being aware of some irrational decision-making, we can avoid making these mistakes.

Five Common spending pitfalls to avoid

  1. Status quo
    We stick to buying what we know instead of pursuing alternatives that may save us money. This also applies to our behavior. Do we act with clarity of thought or just out of habit?
  2. Relativity trap
    We notice a product is on sale, so we feel compelled to buy it. But we don’t need it, so it’s still a waste of money.
  3. Free
    We tend to be attracted to anything that is free. We sometimes end up paying more in the long run. For example, buy five, get one free! Do we really need six of that item?


  1. Restraint bias
    We sometimes overestimate our ability to curb spending. We can help ourselves by avoiding situations or environments that encourage us to buy something new but unnecessary.
  2. Post-purchase rationalization
    We sometimes buy unnecessarily and then find reasons for doing so. Sometimes marketers use “Money Back Guarantees” knowing that instead of regretting a purchase and returning it, we will usually find a way to justify it to ourselves.

Five Tips for Financial Wellness

  1. Slash Your Debt & Expenses
    The first thing to do is list all debts from smallest to largest. Start repaying them now, beginning with the lowest and working to the highest. The corollary to slashing debt is cutting expenses. There’s no need to pay for more than you need. Identify where you can cut costs and then follow through with it. For instance, if downsizing your car will save you money, and you can make it work, then do it! The same principle can be applied throughout your life.
  2. Plan, Plan, Plan
    The best way to start building better financial health is to make a plan. Write down your goals (for the week, the month, the year, the decade, etc.). Having a plan will give you something to fall back on, to look at, review and re-evaluate, as needed.
  3. Prepare for Hardship
    You need to have money in your account so that if you lost your job, or some other emergency occurred, you would have the cash to cover it. You need the security that only good savings can offer. Moreover, this should be separate from your investments – it needs to be readily accessible.


  1. Budget, budget, budget
    Creating a budget can be tough, but it has to be done. Identify areas where you can cut back spending and then make the commitment to do it. You can make small cuts that add up. For example, if you stop by the coffee shop daily and order a $5 cup, figure out how much you would save by taking the time to brew your own. Big budget items such as rent/mortgage may be static for years, so be flexible with the smaller items.
  2. Build for the Future
    Sound financial health means having the money that you need when the “golden years” finally sneak up on you. Find a good financial planner or advisor who understands that slow and steady really is the best option and follow his or her advice. Keep investing, but do it with an eye for constant, steady growth, rather than making a fast buck. This long-term approach is LPGN Founder & CEO Wicky Suyanto’s formula for business success!

So, start making small changes and keep going. You are bound to improve your financial situation if you stick to it!