Tips for Financial Well-being

January 19, 2022

The Benefit Funds often focuses on your health and well-being through our Preventive Care and Wellness articles. However, we all must not forget that financial wellness is important as well. So what is financial wellness and well-being? Financial well-being means having financial security and financial freedom of choice, both in the present and in the future. More specifically, having financial well-being is when you:

• Have control over day-to-day, month-to-month finances
• Have the capacity to absorb a financial shock
• Are on track to meet your financial goals
• Have the financial freedom to make the choices that allow you to enjoy life

This is why people with the same income, financial experiences, or education can have very different levels of financial well-being. Here are some tips for how you can keep yourself in good financial shape. 

Set Financial Goals:

The most essential thing you can do to start maintaining your financial well-being is to set specific and time-bound financial objectives for yourself. Remember to be realistic! It is not always necessary to overachieve; instead, it is necessary to be practical with your expenditures and to create a consistent flow of money. With the market’s upheavals, it’s also vital to re-evaluate your financial goals from time to time. 

Budget: 

First, outline your fixed expenses, like rent, mortgage payments, or other stable household expenditures and bills. Then, factor in your average extraneous expenses throughout the year for entertainment, clothing, dining and other activities. View those expenses in context with your current debts to determine whether you should create any short- or long-term goals that modify your spending behaviors.

Use Your Benefits:

The Benefit Funds offers a great benefits package for our members and their dependents. These benefits can release the burden of many healthcare costs. The U.S. Department of Labor reports that benefits are worth 30% of an average employee’s total compensation. When employees are confused, uninformed, or intimated, they are leaving money on the table and putting their well-being at risk. Please don’t hesitate to contact the Fund Office if you have any questions or want to learn more about using your benefits. 

Find the Right Investments:

It is also never too early to get started on investments to help your family in times of need. It creates economic security and reduces fiscal risk. Your investments should ideally have high returns and low risks. Find the right balance and focus on diversifying your investment portfolio.

Save, Save, Save: 

One of the most important steps to gaining financial independence is establishing a habit of setting money aside for savings on a recurring basis. Automating this process will make things easier in the long run, but try not to “set it and forget it.” We all would like to stop working and retire comfortably one day. So, what is the best approach to accomplish this? Set aside money for retirement! When expressed in this way, it sounds simple, but figuring out how to save for retirement isn’t always easy.

It can be daunting trying to figure out how much money should be saved on a recurring basis, and how much savings you may need for retirement 20 to 30 years from now. However, luckily for you, the Benefit Funds assists you in saving for retirement through your Pension and Annuity Funds. Make sure to get in contact with the Fund Office to learn what contributions are made toward your Pension and Annuity accounts, and how you can use these when setting personal retirement goals. 

Sources:

“Top trends in employee financial wellbeing for 2022” https://www.benefitspro.com/2021/12/03/top-trends-in-employee-financial-wellbeing-for-2022/?slreturn=20220007091622 

“Making financial wellness a top New Year’s resolution” https://www.democratandchronicle.com/story/money/2021/12/13/jobs-careers-newsletter-advice-financial-strategies-2022/6492117001/

“Top 10 Tips to Achieve Financial Wellness (2021 Update)” https://www.wellybox.com/blog/financial-wellness-tips/