Financial wellness is not about perfection, deprivation, or hitting arbitrary milestones. It’s about clarity, confidence, and control—understanding your money well enough to make informed decisions today while preparing for tomorrow.

Introduction: What Financial Wellness Really Means

True financial wellness means:

• Managing day-to-day expenses without constant stress
• Planning for long-term goals like homeownership, education, and retirement
• Building habits that support stability across different life stages

For many people, financial wellness and homeownership are closely connected. Buying a home is often the largest financial decision a household will make, and it works best when it fits within a broader, healthy financial picture.

This guide brings together expert-backed financial principles, myth-busting clarity, and practical home affordability insights to serve as a single, trusted resource you can return to at every stage of your financial journey.

Section 1: Debunking Common Money Management Myths

Well-intentioned financial advice can sometimes do more harm than good—especially when it oversimplifies complex decisions. Let’s address some of the most common myths that prevent people from achieving true financial wellness.

Myth 1: Small Daily Expenses Are the Biggest Obstacle

You’ve probably heard that skipping your daily coffee will unlock homeownership. In reality, financial outcomes are shaped far more by consistent habits, spending awareness, and planning than by eliminating occasional small indulgences.

What actually matters:

• Understanding your full monthly budget
• Aligning spending with priorities
• Maintaining consistency over time

Cory Shepherd, President of Sound Financial Group and CFP®, ChFC®, explains that the biggest financial wins usually come from focusing on major expenses, not minor ones.

“Your top three to five spending items each month—your mortgage and your cars are usually the top two—make a much bigger impact on your financial results than the bottom 20 line items on your budget,” Shepherd says.

He adds that traditional budgeting approaches don’t work for everyone. “To me personally, budgets have always felt more like a prison—more about what I am not going to do than about building a plan for what I do want to do.”

Shepherd instead recommends starting with savings first. “I begin by identifying the appropriate monthly amount of savings to direct toward building assets for my future—hint: it’s at least 20% for nearly all of us.”

He concludes, “If I’m faithfully making that contribution each month and paying off my credit card each month as well, I don’t need to sweat the small details as much.”

Myth 2: Credit Cards Are Always Bad

Credit cards are tools. Used irresponsibly, they can cause harm. Used thoughtfully, they can help build credit history, improve financial flexibility, and support future borrowing opportunities.

Healthy credit use includes:

• Paying balances on time
• Keeping utilization low
• Avoiding unnecessary high-interest debt

Shepherd cautions consumers not to let rewards programs drive spending decisions.

“My only caution here is that you avoid getting too swept up in the ‘points game,’” he says. “Credit card companies don’t offer points and reward programs because they lose money—it makes them a lot of money.”

He warns that chasing rewards can subtly encourage overspending. “Getting too caught up in optimizing for points starts to promote overspending. Always ask yourself: would I buy this if I didn’t get any points?”

At the same time, Shepherd acknowledges there may be limited, strategic use cases. “If you carry a balance on a credit card, all you are doing is paying some amount above the sticker price for that purchase. Used strategically, there could be a time and a place for that.”

“For example,” he continues, “if you want to take the family on a trip to Hawaii and choose to buy the tickets now and pay down the card over six months instead of saving for six months first, it could be worth it.”

However, he stresses restraint. “Use that strategy sparingly. Most everyone who is financially independent got there by being patient, delaying gratification, and building a strong foundation first.”

Myth 3: Buying a Home Is Always Better Than Renting

Homeownership can be a powerful wealth-building tool—but only when it fits your financial readiness and lifestyle. Renting is not a failure, and buying too early can create unnecessary stress.

Financial wellness means choosing what works now, not what sounds best on paper.

“Most mortgage companies wouldn’t publish something that gets people thinking about not buying a house, so kudos to Mutual of Omaha Mortgage for taking this holistic approach,” he says.

He recommends practical tools to evaluate the decision objectively. “The New York Times published a rent-versus-buy calculator that I highly recommend if you want to run some numbers for yourself.”

Shepherd notes that financial outcomes aren’t always intuitive. “For many clients I’ve taken through this exercise, the ‘rate of return’ on buying their house is not particularly high, and renting might actually lead to them having more money over the next several years.”

Still, numbers aren’t everything. “Many of my clients still buy a house because, for them, the value is about having their own space and creating a stable future for their family.”

He concludes, “If they’re already following the 20%+ savings rule, they don’t have to make the home-buying decision purely about maximizing dollars on their balance sheet—they can make it about building the life they want now, while still building a good future.”

Myth 4: Investing Is Only for High-Income Households

Long-term financial growth is not reserved for the wealthy. Education, early planning, and consistency matter more than income level.

Shepherd highlights how accessible investing has become—while also urging caution.

“ETFs, index funds, and the internet together have made investing in markets more accessible than ever before in human history,” he explains. “If all you have is $10 a month to start investing, you can probably find a company that can help you.”

However, accessibility comes with risk. “That can also be dangerous, because the average investor might not fully understand the short-term risk and swings in value that come with the stock market.”

He emphasizes the importance of liquidity first. “Many people dive into the stock market before they have enough short-term savings. If you don’t know how you would make ends meet if you lost your paycheck for three months, it’s probably better to start building that safe-money account first.”

Myth 5: Earning More Automatically Solves Financial Stress

Income helps, but habits matter more. Without budgeting and planning, higher earnings can simply lead to higher spending.

“More money is often not the solution to money problems,” Shepherd says. “Habits and practices must change first.”

Myth 6: You Must Be Completely Debt-Free to Be Financially Healthy

Not all debt is equal. Strategic debt—like education loans or a mortgage aligned with your budget—can support long-term goals when managed responsibly.

“I like to think in terms of liabilities versus debts,” Shepherd explains. “Debts are almost always a net loss over time, while liabilities can sometimes be useful tools.”

He clarifies the distinction. “A debt is an unsecured obligation tied solely to your future cash flow—like a credit card. You are literally trading hours from future days of your life to make that purchase right now.”

“A mortgage,” he continues, “is a liability on your balance sheet that’s offset by an asset on the other side—your home.”

Shepherd notes that context matters. “If the monthly mortgage payment isn’t so high that it crowds out other important spending, it can be a useful tool.” “And if your other assets—like retirement or investment accounts—are earning more than the interest on your mortgage,” he adds, “then using a mortgage to acquire your home may be more effective than spending those assets.”

Myth 7: Financial Planning Is Only for Later in Life

Financial wellness compounds over time. The earlier you start learning and planning, the more flexibility you create for the future.

Like the old saying goes: 

Q: What is the best time to plant a tree? 

A: 30 years ago.

Q: What is the second-best time to plant a tree?

A: Today!

Section 2: Financial Wellness Is a Lifelong Skill—And It Starts Early

Financial confidence doesn’t appear overnight. It’s built gradually, often beginning long before adulthood.

Teaching Financial Literacy to Kids and Young Adults

Introducing age-appropriate money concepts early helps normalize healthy financial behavior.

Key foundational lessons include:

• Saving vs. spending
• How interest works
• The basics of credit and borrowing
• Budgeting for goals

Parents and caregivers play a powerful role simply by modeling thoughtful financial choices and open conversations about money.

Shepherd encourages transparency with children when it comes to money.

“Let your kids see at least some of what is going on in your head around money,” he advises. “Our kids will eventually find out that we don’t always have all the answers.”

“Better to show them early,” he adds, “how you go about figuring out the answer when you’re faced with a challenge.”

Young Adulthood: Laying the Groundwork

Early adulthood is often when people first encounter:

• Credit scores
• Student loans
• Rent and utilities
• Long-term financial tradeoffs

Building financial awareness at this stage can prevent common mistakes and create stronger positioning for future milestones like homeownership.

Shepherd believes early exposure to financial responsibility builds long-term awareness.

“Even if parents intend to pay for school, they should help the student take out some loans at the beginning,” he says.

“It’s a first chance to walk them through a significant financial transaction,” Shepherd explains, “and it helps the student become a more economically oriented consumer of their college experience.”

He adds with a practical insight, “They’re also less likely to skip classes when they know how valuable each class actually is.”

Section 3: How Much Home Can You Really Afford?

One of the most important aspects of financial wellness is understanding affordability—not just qualifying for a mortgage, but choosing a home payment that supports your life.

Start With the Full Budget

Affordability is more than a monthly mortgage payment. A complete picture includes:

• Principal and interest
• Property taxes
• Homeowners insurance
• HOA dues (if applicable)
• Utilities and maintenance
• Savings and emergency funds

Shepherd reframes the affordability question entirely.

“I encourage clients to ask the question a little differently,” he says. “Instead of ‘What can I afford?’ I ask, ‘What works inside my strategy?’”

He explains why this matters. “Many consumers can technically put together a high monthly payment, but ‘affording’ that would remove all flexibility from their budget.”

Before buying, Shepherd urges reflection. “Ask yourself what other parts of your life are important enough that you can’t compromise—and then make sure your new home supports those values.”

Understanding Debt-to-Income (DTI)

Lenders use DTI to assess how much of your income goes toward existing debt. From a wellness perspective, DTI also helps you understand comfort, not just approval.

A healthy DTI leaves room for:

• Savings
• Lifestyle flexibility
• Unexpected expenses

Down Payments and Savings Still Matter

While low-down-payment options exist, financial wellness includes having:

• Emergency savings
• Closing cost awareness
• A buffer for homeownership expenses

Tools vs. Real-World Planning

Affordability calculators are helpful starting points, but real financial wellness comes from pairing tools with thoughtful planning and professional guidance.

Section 4: Connecting Financial Wellness to Long-Term Confidence

Financial wellness is not a destination—it’s a system.

Strong financial systems include:

• Regular budget check-ins
• Credit awareness
• Goal-based planning
• Informed borrowing decisions

When homeownership is part of that system, it becomes a stabilizing asset rather than a financial strain.

Conclusion: Financial Wellness Is About Alignment, Not Perfection

There is no single formula for financial success. True wellness comes from aligning your money decisions with your values, goals, and life stage.

Whether you’re teaching your children healthy habits, preparing for your first home, or reassessing affordability, financial wellness provides the clarity needed to move forward with confidence.

Frequently Asked Questions

What is financial wellness?

Financial wellness is the ability to manage daily expenses, plan for future goals, and make informed money decisions with confidence and clarity.

Does financial wellness mean being debt-free?

No. Financial wellness focuses on managing debt responsibly, not eliminating all debt. Strategic borrowing can support long-term goals when aligned with your budget.

How does financial wellness affect home affordability?

Strong financial wellness helps you understand what home price and payment fit comfortably within your budget, beyond just qualifying for a loan.

Is financial literacy important for kids and young adults?

Yes. Early financial education builds confidence, encourages healthy habits, and prepares young people for future financial responsibilities.

How can I tell how much home I can afford?

Affordability depends on income, expenses, debt, savings, and long-term goals—not just lender approval or calculator estimates.