Here at LifeWork Strategies, we focus on four corners of well-being: social, emotional, physical and financial. When striving for well-being, it is important to focus on every dimension. Financial wellness is often an overlooked aspect of wellness, but is equally as important. Financial wellness is defined as “having an understanding of your financial situation and taking care of it in such a way that you are prepared for financial changes”. This includes being comfortable with where your money comes from and where it is going. In honor of National Save for Retirement Week, we are focusing on financial well-being!
It may be helpful to explore your current state of financial well-being. Before improvements can be made, let’s figure out where you stand. Do you have a budget you follow? This can help monitor and control your spending. If you have debt, are you aware of the total amount of debt you have? Are you currently saving for retirement? If not, how can your current employer contribute? Although these questions may be overwhelming, they can help you discover and improve your financial well-being.
If you are concerned with your financial state, never fear! Here are a couple ways to get your finances back on track.
Did You Know?
- 44% of full-time workers say they worry about personal finances during work hours
- 68% of employees with excellent/very good health report being very much in control of their finances
- 40% of employees say they live paycheck to paycheck
- Over half of American workers claim they do not save for retirement
Tips for Financial Well-Being
- Make a budget: Track your spending to see exactly where your money is going. Break it down by category to see what expenses are really necessary.
- Understand your credit score: Lenders use your credit score to determine your interest rate. Low credit scores could lead to high interest rates which could quickly derail your finances.
- Set clear financial goals: Whether you want to save up for a vacation, pay down debt, or add to retirement, it is important to set clear, attainable financial goals.
- Determine what financial well-being means to you: Determine your own financial priorities and use those as your measure of success.
Sources: Definition of Wellness, NBC News, FinWell Group, LifeWork Strategies, and Adventist HealthCare. Health Tip of the Week is for educational purposes only. For medical advice, consult your physician. Feel free to copy and distribute this health resource.