Financial wellness has recently been the focal point of conversation among employees due to the heightened financial stress affecting their well-being and organisational success.
The sequel was the recently released Brightplan 2023 wellness Barometer survey that revealed that about 92% of employees experience financial stress. It has also impacted their mental and physical well-being. Some dodge opportunities to spend quality time with family, friends and co-workers because they cannot afford to financially.
Nonetheless, by practising practical financial wellness tips, employees can make informed financial decisions to achieve their goals. As you read on, you will learn more about financial wellness, essential financial wellness tips for employees and practical ways employers can promote financial health for employees.
What is financial wellness?
Financial wellness is simply about adopting practices that enable you, as an employee, to manage your money more effectively and make informed financial decisions to achieve your financial goals. Financial wellness encompasses various aspects of personal finances, which include budgeting, saving, investing, debt management and financial planning.
Adopting financial wellness as an employee can benefit you in numerous ways, which are;
- Heightened productivity: Financially sound employees are more likely to be present, productive and engaged at work.
- Improved Morale: You will be happier to remain at your present job rather than opt for other options. Because when you, as an employee, aren’t satisfied with your current position due to low income or high debt. You will seek better job options that won’t be a significant financial stressor.
10 Essential Financial Wellness Tips for Employees
As an employee, making enormous amounts does not equate to good financial standing. I advise you to practice these financial wellness tips to achieve your goals. The ten essential financial wellness tips for employees include:
Create a budget and stick to it
A budget helps you track your income and expenses to know where a large chunk of your money is going and make necessary adjustments. But first, you must identify the things you want and those you can do without so that you know how to budget accordingly.
Pay off bad debt
Bad debts are typically expenses that decrease your financial situation and will hinder you from achieving your financial goals. For instance, renting an apartment and being unable to pay your rent is a bad debt. Paying off these expenses will enable you to focus better at work. Imagine how frightening it can be to receive calls from your Landlord about your due rent. You do not want to ever be in that situation.
Seek Professional help
Do not be afraid to seek help when you realise you are terrible at managing your finances. Reaching out to a financial advisor or mentor will prevent you from being trapped in economic chaos. On the other hand, these individuals can help you create a financial plan to stick to.
Invest for your future
You can begin investing for your future after you have paid off bad debts. Ensure you do your due diligence before picking any investment options.
Focus on your financial goals
Comparison will rob you of your joy and make you think you are not doing enough to achieve your goals.
Even if you haven’t arrived where you should be financially, be grateful still.
Seek opportunities to enhance your financial knowledge and skills. You can do this by attending workshops, webinars or educational programs that will give you insight into finance concepts and tools you can utilise to manage your money.
Achieving financial success takes time. It’s not a walk in the park. Therefore, do not be discouraged to keep taking those baby steps towards achieving financial success even if you do not see the results now.
Save for emergencies
You should sometimes separate funds for unexpected expenses such as medical bills, car repairs, etc.
Enjoy the journey
Try to have fun and enjoy what you currently have while trying to achieve your financial goals.
2 Practical Ways Employers Can Promote Financial Wellness for Employers
i. Provide financial benefits such as paid leave and health saving accounts to motivate employees to complete their tasks.
ii. Offer financial education to employees to enhance their knowledge about personal finances. It could be through online courses, workshops, or sharing finance resources with them.
iii. Offer retirement savings plans, such as 401(k), 403(b), or pension schemes, for your employees so that they can maximise it to plan for their future. Doing so will create a positive workspace that promotes productivity and innovation.
By taking intentional control of your finances as an employee and making informed decisions, you will witness progress towards achieving your financial goals. Thereby improving your economic well-being and creating a more secure future for yourself.