Financial wellness refers to the ability to gain control of one’s finances and use them effectively, whether that means setting and reaching short-term savings goals like emergency funds or long-term ones like retirement planning.
Financial wellness programs serve as training wheels that assist your employees in staying on course towards achieving their financial goals and protecting themselves from stressors or self-defeating patterns that are hard to break.
1. Set Goals
Reaching financial wellness requires setting attainable goals and isn’t a linear process; therefore, setting achievable targets is key. Instead of trying to pay off credit card debt all at once, consider setting up an auto-debit system which deducts small amounts each paycheck.
Start slowly by learning about various budgeting techniques. There are various resources online that can assist with creating a comprehensive financial wellness plan.
Many employers provide employee assistance programs designed to assist with budgeting, financial crisis management, and more. These resources can be a tremendous aid in reaching financial wellness. Think of them as your financial protector – when life throws us unpleasant surprises or stressful crises our way, these tools will be there to protect future you from collateral damage.
2. Learn Budgeting Techniques
Budgeting is a vital element of financial wellness. Whether you use pen and paper or an app, tracking your spending regularly so that you are aware of where it goes and can save accordingly.
A proper budget should prioritize needs over wants and include all sources of income (not just salary). It should help set short and long-term savings goals to reduce stress levels while planning for retirement.
Employees can find financial wellness programs at their workplace, college campus, professional finance company and non-profit organizations. Check with your human resources department or Employee Assistance Program (EAP) about what programs may be available – you might be amazed to discover just how many programs exist!
3. Set Aside Money for Savings
Financial wellbeing means regaining control of money so it doesn’t run your life. That means budgeting, paying off debt and setting savings goals – plus having enough savings and investments in place so you can cover expenses without credit cards or paycheck advances! Finally, having long-term investments and insurance in place protects against unexpected events that arise.
These three components of financial wellness work together to foster a healthier relationship with money and set you on the path toward long-term success. Achieve these goals can reduce stress levels that have been linked with decreased productivity and absenteeism/presenteeism rates at work. While creating and adhering to plans are useful ways of increasing financial wellness, successful improvements also involve adopting mindsets and attitudes conducive to positive changes.
4. Get Help if Needed
Are You Struggling with One or More Components of Financial Wellness? A healthy money mindset could make all the difference!
Consider hiring the help of a trained financial expert who can coach you through budgeting techniques, paying down debt and setting long-term goals for retirement and other life events. They may even offer tools like online calculators that show how much money could be saved by making certain changes to your lifestyle.
Hiring help may seem like an unnecessary expenditure, but it could prove invaluable as you work to enhance your financial health. Check with your employer to see if they offer free financial wellness programs as part of their employee benefits package.
5. Take Care of Yourself
Financial wellness involves more than simply managing your money wisely. Exercise and healthy eating habits to feel good about themselves. Doing this will also enable them to stick to good budgeting practices.
As part of retirement planning, diversifying income sources is also crucial – this could include creating side hustles or finding other means of making extra cash.
Many companies and universities are beginning to implement financial wellness programs for their employees, which is an encouraging step; however, each individual’s needs differ when it comes to finances.
