What Is Financial Wellness—and How Do You Actually Achieve It?

One sleepy Saturday morning, my wife Katelynn gently woke me with a loving smile. She had something in the kitchen for me. Excited at the prospect of a tasty breakfast treat, I stumbled to the kitchen to find…well, something else. Waiting in the oven was a single stale, desiccated hot dog bun.

"Has Katelynn lost her mind?" I thought, "This is a very far cry from her famous cinnamon rolls."

Speechless, I showed it to her with a look of confusion.

A huge smile spread across her face. "It's a bun in the oven!"

It took me a minute, but my confusion quickly turned to joy. Katelynn hadn’t suddenly lost her baking skills; she was pregnant! We were expecting our first child! 

After celebrating, I quickly went into preparation mode. We'd been planning our first baby for a year, but now that it was finally real, the biggest question was: "How are we going to afford this?" Health care costs, maternity leave, mountains of baby gear, and a whole new life was ahead. I was excited about the baby, but…what about the money? 

I wasn’t new to managing my finances. I had spreadsheets. I had apps. What I didn’t have was peace of mind (or cinnamon rolls, for that matter).

Katelynn’s wake-up call that morning was also a wake-up call to start my financial wellness journey in earnest. I began to scour the internet for solutions. But it turned out I wasn’t looking for a budgeting app; I was looking for a way to feel okay. That search eventually led me to YNAB. And while I didn’t find a magical button to make baby expenses disappear, I did find a way to plan ahead, sleep better, and actually enjoy preparing for this new chapter. What I wanted was a plan. What I found was peace.

Why financial wellness matters today

In a world where 77% of people report feeling overwhelmed or anxious about money, financial wellness is more than a buzzword—it's a necessity. When you're constantly worried about bills, unexpected expenses, or whether you'll ever get ahead, that stress shows up everywhere: in your relationships, your job performance, your health. The effects of financial anxiety ripple through every area of life, and for many, it can feel like there's no way out.

But there is a way out—and it starts with a question that turns everything on its head: "How do I want to spend my money?" Instead of reacting to financial demands, this mindset invites you to lead with intention. Financial planning is aligning your spending with your values, your goals, and your sense of purpose. When your money choices reflect what matters most to you, peace of mind naturally follows.

The four elements of financial wellness

Financial wellness isn’t a one-size-fits-all destination, it’s a balance of four key areas: mindful spending, emergency preparedness, long-term planning, and financial confidence. 

Mindful Spending means your money supports your values. In fact, 89% of YNABers say their spending is now aligned with what matters most to them. That clarity comes from giving every dollar a job and understanding what your money is truly for. It's not just about spending less; it's about spending better. Think: guilt-free lattes and intentional splurges.

Emergency Preparedness turns panic into peace. Before using YNAB, only 38% of users felt confident they could handle a $1,000 emergency. Now? 93% can. That kind of resilience doesn’t happen overnight, but it grows with each intentional decision. While your car will still break down from time to time, it’s nice to know you won’t break down right along with it.

Long-Term Planning transforms dreams into goals—and goals into reality. Whether you're saving for retirement, a master’s degree, or your next big adventure, planning gives your dreams structure. And when your money is aligned with your future, each small step adds up to big change.

Financial Confidence is the emotional core of financial wellness. 92% of YNABers report less stress, and 91% say their mindset around money has fundamentally changed. It's not just about numbers; it's about how you feel when you look at them. Imagine opening your bank app without holding your breath.

You start to feel better about your money—and the numbers follow.

Financial health vs. financial literacy vs. financial wellness

The personal finance space is full of buzzwords—financial health, financial literacy, financial wellness. They sound similar, but they play very different roles in your relationship with money. Let’s bring a little clarity to the mix.

Financial health is the measurable stuff: your income, debt, retirement savings, credit score. It’s your financial blood pressure. 

Financial literacy is your ability to read and respond to those vitals—understanding your options, making informed choices, and steering clear of costly pitfalls. Then there’s

Financial wellness is how you feel about your money, and whether your money supports the life you want to live.

YNAB helps with all three. It gives you the data (health), teaches you what to do with it (literacy), and helps you build confidence and peace of mind (wellness). And while all three are important, financial wellness is the north star. Because at the end of the day, it’s not just about knowing more or tracking better—it’s about feeling good about your money and the kind of life it makes possible.

By giving you clarity about your financial situation and helping you make informed decisions, YNAB is designed to build both hard metrics and soft confidence. You start to feel better about your money—and the numbers follow.

And YNAB does it with so much more than an app. With educational resources, workshops, and a community of supportive users, it helps you grow your financial literacy while building real-world skills. When you understand your money, you stop feeling like it’s in control of you—and start feeling like you’re finally in the driver’s seat.

How to achieve financial wellness

So how do you begin? Start by understanding what your money needs to do before you get paid again. That’s the first step in the YNAB Method: give every dollar a job. Create categories for the important expenses in your life—rent, groceries, upcoming bills, and yes, cinnamon rolls.

Once your immediate obligations are covered, you’ll start setting aside money for larger, less frequent expenses (hello, car repairs and holiday travel). By setting a little aside every month, you'll be ready for any financial surprise. Then, build resilience by building more margin. We do this by setting money aside not just for this month's needs, but next month's as well.

Along the way, track your progress, adjust as needed, and revisit your financial goals. That’s how you build not just a plan—but peace of mind. At the heart of it all is spendfulness: the practice of aligning your spending with your values to create a more intentional, joyful life.

If you'd like step-by-step instructions on how to build a plan for financial wellness tailored to you, look no further than YNAB's Ultimate Get Started Guide.

Building a life of confidence, resilience, and possibility

Financial wellness isn’t built in a vacuum—it’s formed in the everyday decisions we make around credit card debt, savings, spending, and planning for the future. And while no two financial journeys are exactly alike, the patterns are clear: when you reduce financial stress and build resilience, your entire life improves.

Debt

Take debt, for instance. It’s one of the biggest contributors to financial anxiety, and understandably so. But it doesn’t have to be permanent. Among YNAB users, 74% have paid off debt—an average of $27,744. That’s not just dollars and cents. That’s freedom. That’s the ability to breathe easier and look forward without dread.

Financial security

But even once the debt is gone, what then? That’s where financial security comes in. Before YNAB, most users couldn’t make it a month on their savings account balance. Now, 70% of YNABers say they could support themselves for three months or more with an emergency fund and savings for many other surprises. That margin is powerful. It’s the difference between scrambling and sleeping well. It’s the quiet confidence that you’re ready for whatever life throws your way.

Stability

And that confidence continues to build. With YNAB, users start to shift from reactive to proactive. They track spending, avoid surprises, and stay aligned with their values. Sixty-nine percent now pay bills on autopay. They dream ahead. Whether it’s saving for retirement, a big move, or just having the freedom to say yes to what matters most, they’re not just hoping for a better future—they’re planning for one.

Financial peace of mind

When your spending feels intentional, stable, and aligned with your goals, your financial life opens up in a thousand little ways. That’s not just financial wellness. That’s a well-spent life.

When money feels chaotic, it takes up mental space. It keeps you up at night and creates tension in your relationships. But when it feels calm and under control? Everything changes.

YNAB users report better sleep, fewer arguments, and a greater sense of ease. That’s not a coincidence. Financial wellness is mental wellness.

Financial wellness by YNAB

At this point, it's clear: financial stress doesn’t just affect our wallets—it impacts our sleep, our relationships, our performance at work, and our overall financial well-being. And it’s not just individuals who are noticing. More and more employers are recognizing the link between financial stress and workplace performance. That’s why programs like Financial Wellness by YNAB are gaining traction.

If you’re looking for support from your employer—or want to bring the benefits of YNAB to your workplace—check out how Financial Wellness by YNAB can help. Because everyone deserves clarity, confidence, and calm when it comes to money. With top-notch software and financial education, you can give your employees or co-workers the gift of a brighter financial future!

Start your financial wellness journey today

Financial wellness isn’t about being perfect with money. It’s about being present with it—especially in those moments that change everything. For me, it was that morning in the kitchen, facing a hot dog bun and a future I wasn’t sure we could afford. When you align your spending with your values, you gain clarity, freedom, and peace of mind. Not because life gets less expensive, but because you finally feel equipped to meet it.

Ready to experience it for yourself? Start your journey with a free 34-day trial of YNAB. Because your money is your life—and it’s time to spend it well.