Financial well-being is increasingly recognized as a structural driver of psychological health, yet empirical evidence in academic backgrounds remains dominated by perception-based measures. This study investigates how financial well-being shape psychological well-being among degree college faculty in Odisha. Using cross-sectional data from 164 faculty members, psychological well-being is measured via the WHO-5 Well-Being Index, while financial well-being is captured through disaggregated ratio-based indicators: EMI burden ratio, savings rate, emergency fund coverage, asset liquidity ratio, and credit card reliance. Ordinary Least Squares estimation with comprehensive diagnostic testing reveals that debt burden exerts a strong and negative effect on psychological well-being, whereas savings capacity, emergency preparedness, and liquidity buffers significantly enhance mental well-being. Credit card reliance shows a negative but comparatively weaker association once structural financial buffers are controlled. Demographic and institutional characteristics lose explanatory power after accounting for financial structure, indicating that everyday financial constraints dominate personal attributes in shaping faculty well-being. By replacing perception-based indices with measurable financial ratios, this study advances the literature on financial well-being and provides rare subnational evidence from India.