Posted by Tasneem Panchbhaya
How many of you have found yourself in a situation where you looked at your recent credit card statement and are in disbelief by what you see, because like most, people are now tapping/swiping their cards without giving it much thought, and bringing your spendure to more than expected? Or, have you found yourself in a situation, where your cash income is going to be delayed, so now you don’t know how your going to cover your major, necessary expenses. If any of these situations or similar ones apply to you, just know you’re not the only ones. A Manulife study, states that about 40% of people in North America are financially unwell and 26% of people are doing “okay”. Meaning only 34% of people are making the right strides to better financial health.
As nice winning the lottery would be nice, it often times actually will not make your financial situations better. More money does not equal better financial wellness, and here’s why: financial wellness is the relationship one has with money, meaning are you able to keep your spending within you comfort, and are prepared for any unexpected financial emergencies (do you have savings/rainy day funds); do you have access to any resources or tools that you need to make good financial decisions; are you ready for the future, have you started making plans to achieve your goals? These are the types of questions that should be surfacing in your mind when you think about your finances. When you think about your financial wellness, it shouldn’t feel like an uncomfortable topic, you shouldn’t have to get depressed every time you think of money (or lack thereof).
Now the overbearing question, why does any of this matter for both the employees and employers? When an individual (employee) has the financial bliss they need, they are able to produce better work because they’re more productive and more engaged, because they’re less stressed, and therefore are more likely to stay on the job.
According to a study by Mercer, when you have financially stressed employees, 22% have reported missing at least 1 work day to take care of any financial issues; 15% have spent more than 20 hours or more in a month while at work, thinking about their financial situations; and 20% said to actually leave their job because of their financial stress.
As employers, who want the best for their employees overall health, as well as retaining productive employees, it’s a matter that should be taken into the hands of the organization in order to provide tools that can help bring upon financial stability for their employees and as a result bringing down any indirect cost associated.
Here are my top 3 tips for finding better financial wellness!
Experts cannot stress enough how important planning is for your financial wellness. I know saving for the future and/or emergencies, isn’t as fun as splurging on unnecessary necessities, however planning ahead makes the world of a difference. Planning works hand in hand with goal setting, setting goals (both short, medium, and long term) will help make planning easier, figuring out what you value makes deciding where and how much you need to save for the future. It also makes daily/weekly spendings a lot easier to control since now you can differentiate what you need from what you want.
Similar to planning, it’s essential that employees start investing into their future retirement, it’s never too early or too late to start. Investing into retirement savings that accumulate compound interest over time will help increase your savings without lifting a finger. Knowing you’re financially prepared for the future will help release any stress or doubts you were having about life after retirement.
3. Control Debt
This last tip is a given, the best way to increase your financial wellness is by decreasing any financial debts that you have. Many of us have to juggle (student) loans, credit card payments, recurring expenses like car or housing, and much more. You’re priority when it comes to paying off loans or debt is to start with the ones with the highest interest rates, if you can clear those ones out first, it’ll be better for you in the long run because the higher the interest rates, the higher accumulation of debt.
Make the most of what you earn through Optimity, we can help you stay on track by providing you with the tools you need to make better strides with your financial wellness. Our platform, is innovating and constantly changing to meet the needs and demands of every busy individual. Let us help you, help yourself. We know that it can be hard to juggle your financial health as well as all other aspects of your wellness, but we can make that easier for you. Contact us to learn more about how you can make the burden of financial wellness easier and fun! All you need is the right platform with the right tools to help guide you!