October 3, 2022
Being financially well means you can meet yours current and ongoing financial obligation, feel secure for the upcoming financial future, and you are able to make choices that allows to make choices that allows you to enjoy your life for the upcoming financial future, and you are able to make choices of their own life.
It is unique for every individual as everyone’s circumstance are different and it varies with every class, section of the society for some it means whether they can handle an uncertain medical emergency, for some it is to make choices that would allows them to enjoy life, like going on a vacation or spending on high-end gadgets.
Having financial freedom has a major impact on our lives. Our present lifestyle and upcoming future decision depends on how secure we are in our finance and it impacts on every decision we take.
It lifts the burden is immensely freeing and one of the greatest benefits to financial freedom one gets the freedom of choice and control over the time we spend on our work. It also gives us the benefit of following up with our passion.
Financial freedom would rekindle our last passion that has been suppressed by the grind we did to get a job.
Once money isn’t the primary motivating factor one can start making choices with their values at forefront. It also gives us the benefit to take risk, from starting a new business to relocating to any part of the world.
No one-size-fits all approach
Although there is no one-size-fits all approach to achieve financial well-being, we have plenty of ways to improve our financial lives. If one develops their financial goals around the four key interrelated areas-spending, saving, borrowing and planning, wisely, they will achieve financial peace of mind, confidence and a state of well-being.
Financial wellness, and financial education in general, is something we need to track By doing so, employers can continually tweak, adjust and improve their financial wellness programmes to reduce employee financial stress and genuinely help employees to build confidence and reach their financial goals.
Financial wellness programmes
Employers should be mindful of these areas when creating, tracking, and measuring financial wellness programmes:
Planning and budgeting
This involves helping employees to take control of their finances and understand their saving habits so they can save for the future and fulfil their financial goals.
There's a difference between good debt and bad debt, and it's important to help employees understand which debts they should priorities as well as how to set aside money to repay debt in a manageable way.
This is an area least understood by employees and the type of protection people may need will be unique to their circumstances. When employees take out personal protection, it helps provide a financial safety net and peace of mind.
Whether buying for the first time or purchasing property as an investment, it pays to understand all the options available, as this is a big financial commitment.
Savings and investments
Financial stresses are alleviated when we have set aside some money for a rainy day. Businesses can help staff, giving them knowledge about where to invest their money and how to build a short, medium and long-term plan.
From understanding tax allowances to tax-efficient saving and self-assessments, this is another area people struggle to engage with, but it’s a crucial part of any financial plan.
Planning for retirement
With your help, employees can plan a better financial future in retirement, and this is relevant at every stage of their career. Helping employees understand and engage with their pension savings early on is vital, as is providing support to employees as they approach retirement, both financially and emotionally.