Importance Of Financial Wellness And How To Achieve It
Though you may not be aware, financial wellness goal that you like most of us, are struggling to achieve. Let’s talk about why financial wellness is important and how you can achieve it with our Access Loans employee loan programs and some tips.
Why Do You Need Financial Wellness?
Financial wellness is being able to manage one’s economic life which includes paying off debts, maintaining bills and spending within the budget or means, and be able to plan ahead for future financial needs without having to struggle. Here’s why you need it.
1. Stress Management
According to this article, 64% of Americans stated that money is a significant source of stress in their lives, in 2020. Many Americans, sadly, struggle to pay their rent, while others struggle to keep up with their debt, particularly student loans and credit card debt. Indeed, money does not always come easy. Figuring out how to stretch one’s salary until the next payday creates financial worries. Emergencies and other unexpected expenses would only exacerbate (worsen or intensify) the situation. Being able to manage one’s finances, through financial wellness, would help lessen the stress in your life.
2. Financial Security
If you are not able to meet your current obligations, you risk spending all your money before the next payday and will be unable to save or invest. An unexpected expense or a crisis could lead you to bankruptcy. Many people go through life financially unstable. By striving for financial wellness, you will be able to budget your money, allocate some for your savings and investments and be better prepared if an emergency or crisis strikes. With enough savings and investments as additional income, you will be able to achieve financial security and be able to make choices that let you enjoy life.
3. Achieve Your Life Goals
Do you see yourself paying rent for the rest of your life? Do you still want to drive that beat-up car five years from now? At what age do you want to retire? You can achieve your desired goals not only by working day in and day out, but by striving for financial wellness. Through the strategic allocation of your salary and timely investments, you can achieve your life goals one by one.
https://www.youtube.com/watch?v=QvX-9hv3NNY
How To Achieve Financial Wellness
1. Creating A Budget
Employees with very limited financial resources need to be extra careful with how they spend their money. Know where your money goes and control it. Having a clear understanding of the funds you bring in each pay period or month, and money you pay out is essential; you can’t manage a budget if you don’t know what your budget actually is. Instead of buying unnecessary things, put the money toward your savings.
2. Building Your Savings
You may have heard that you should have an emergency savings fund and a life savings fund. For many, building a savings account is difficult. However, there are tools you can use to start, such as our Access Loans employee loans programs or the Thrift Savings Plan (TSP) which is offered to federal employees.
3. Invest
Investing allows your money to grow so that you don’t have to rely on your salary alone. Investments can also serve as additional income, as well as a way to protect your savings from inflation. Investments are useful both for short-term and long-term goals.
Ask about our Access Loans loan program.
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* ACCESS LOANS® product is funded and serviced by Safra National Bank of New York (“SNBNY”). Member FDIC. Equal Housing Lender.
