PODCAST: How financial well-being impacts accounting professionals

Written on Feb 25, 2021

By Jessica Salerno, OSCPA senior content manager 

It’s time to consider what financial well-being means when the focus isn’t solely on numbers, said Danetha Doe. 

“I want to dispel a myth that is sometimes associated with financial well-being,” she said. “It’s that it's only a poor person problem, or someone that has low-income, or their business isn't thriving financially.” 

Woman smiling for camera.

Financial well-being is more than being successful or struggling financially, Doe said in this week’s episode of The State of Business podcast. It’s tied to a person’s goals and feelings around money as well. 

Doe, a financial psychologist and founder of the aspirational money blog Money & Mimosas, said she started talking about the intersection of wealth and wellness around five years ago as she was making the connection between her own emotions and financial goals. Around the same time, a report came out from the Consumer Financial Protection Bureau about financial wellbeing, where they made the connection between how someone feels about their finances has a profound impact on their financial life. 

“And that was monumental, because prior to that financial education only focused on the numbers in terms of how much do you have in your savings? How much is your net worth?” Doe said. “And that didn't really give space for how these financial goals that actually have a huge impact on someone's overall well-being and their wellness and health.” 

The definition of financial well-being from the Consumer Financial Protection Bureau is a state of being where you feel you’re able to meet your ongoing and current financial obligations, you feel secure in your financial future and you can make decisions to enjoy life. Doe said people who look financially well on paper might have high degrees of stress and anxiety in their life around their finances, not meeting the last two parts of that definition. 

To start thinking of your own financial well-being, Doe suggested asking what that term means to you. Consider what it means to feel secure in your financial future and what does it mean to be able to make choices to enjoy life. The next step is thinking about the decisions you need to make to create that definition, you have for yourself. 

“All of this is interconnected,” Doe said. “Your financial well-being is directly connected to your overall well-being, so is your physical health and your mental health. Seeing financial well-being as a form of self-care and approaching it from that perspective can help illuminate some areas that could be specific to that individual around what financial well-being truly means for them.”