Financial Wellbeing
Let’s talk about money! It is Workplace Stress month and most of us have at some point in our lives had money worries. With the cost of living going through the roof, it might be more applicable to you today than years ago.
Financial wellbeing refers to the state of having a healthy relationship with money and being able to manage financial challenges effectively. It involves feeling confident about one's financial future, having enough resources to meet needs, and experiencing less stress related to money. Key aspects of financial wellbeing typically include:
Financial Security: Having enough income or savings to cover everyday expenses and emergencies.
Financial Control: Being able to make informed decisions about spending, saving, and investing, with a clear understanding of one’s financial situation.
Financial Freedom: The ability to pursue personal goals, such as buying a home, traveling, or retiring comfortably, without being limited by financial constraints.
Financial Resilience: The ability to cope with unexpected financial setbacks, like job loss or a medical emergency, and recover from them.
We have helped many clients through cases of high absence. Often, it transpires the person felt their life was out of control due to the debt they had accrued. You may have staff members who are stressed due to financial concerns and you don’t need to be financial advisors to help give them some practical tips.
Achieving financial well-being is all about creating a stable and balanced relationship with money – we can all only stretch that pot as far as it will go! Here are some practical tips to help guide you:
1. Create a budget
Track income and expenses: This helps you understand where your money is going.
Categorise expenses: Group them into needs (e.g., housing, groceries) and wants (e.g., entertainment, dining out).
Set limits: Determine how much you want to spend in each category and stick to it.
2. Pay Down Debt
Start with high-interest debt, like credit cards, to save on interest payments.
Use strategies like the debt snowball (paying off the smallest debt first) or debt avalanche (paying off the highest-interest debt first).
3. Automate Savings
Set up automatic transfers to savings accounts each month, so you save before spending.
This reduces the temptation to spend money you should be saving.
4. Set Clear Financial Goals
Have both short-term and long-term financial goals, whether it’s saving for a vacation, buying a home, or retiring early.
Break them down into actionable steps and track your progress regularly.
5. Review Regularly
Review your finances at least once a month to see if you’re on track with your budget, savings, and goals.
Adjust where necessary, especially if your life circumstances change.
Building financial well-being is a marathon, not a sprint, and it requires ongoing commitment. Start with small changes, and gradually you'll see improvements in your financial security and confidence.
If your company offers an Employee Assistance Programme, use it! They usually have a helpline for finance concerns.
Can we help you?
If you’re a business owner, MD or HR professional looking for an affordable HR partner you can trust, why not talk to us?
Please contact us – we’d love to hear from you.