28 April 2020
Everyone has experienced a phase of stress at the workplace, but when financial worries are a constant element of your life it can be devastating to your productivity and mental well-being. Lack of financial well-being can make you feel undervalued, distracted, and helpless. It can result in severe mental health conditions such as anxiety, depression, and high-stress levels. How can this be avoided? What is financial wellness? How is it helpful? How can it be maintained?
Many might wonder if financial wellness is about earning ‘enough money’. But if were to get slightly philosophical about it – no amount of money will ever be ‘enough’ for an individual. Then, what is financial wellness? Financial wellness of an individual implies a state where an employee, living well within his/her means, is able to keep an emergency fund for stressful situations and still manage to meet his/her basic needs. Financial wellness is the freedom to live life on your terms without worrying about how you’ll pay your next bill.
Employees facing less financial fret and distractions contribute to more focused, engaged, and productive workforce. Improving financial wellness leads to healthier employees, reduced absenteeism and higher productivity while raising employee satisfaction and improving the employer brand.
There are five key steps to maintain financial wellness –
Employees passionate about what they do tend to be happier and more productive at their work. Steve Jobs famously said, “The only way to do great work is to love what you do.” Having a passion for what you do, helps tackle challenging situations – financial, emotional or physical. There will always be a desire to work. Following passion brings out the creativity inside you. There are more highs and fewer lows, and each day seems more bright and interesting
Maintaining a budget for monthly expenses is another way of eliminating stress from your life. Many are often turned off by the term ‘budget’. They associate it with restrictions and a lot of hassle. However, budgeting can save you money, and allow you to spend more by helping you to make the most of your money. People who do not have a budget tend to save less money than people who do. This ultimately reduces stress and helps you focus on important parts of life other than finance.
Emergency funds can be of great use during situations like job loss, medical issue, repairs and maintenance, debt clearance, etc. These funds are helpful when a person has a single source of income. Emergency funds can protect you from all of the unexpected expenses you may encounter whether big or small. Emergency funds can be created in the form of insurance policies. The purpose of insurance is to reduce your business’ exposure to the effects of particular risks.
Emergency funds can be a helpful buffer against any kind of life events that could push you into debt. It helps reduce anxiety, knowing that you have a buffer against whatever life may throw at you.
Investments are an essential way to increasing your financial worth and stability. Investing allows you to put money in assets that have the potential to earn strong rates of return in the future – it’s far better than having your money lie idle in the bank, and ultimately works as a healthy income source in addition to your job. Investing early also enables you to develop disciplined spending habits by focusing on your budget and cutting expenses when needed. Having a potential extra source of income reduces the dependency on just one.
While focusing on saving and investing money throughout the month, try to budget a certain amount for the reason you are working – happiness. Don’t get focused on your work to the point that you forget to live. Make sure to take out time for yourself and cherish what’s yours. Spend on yourself. Go out with friends and family. Cherish the important moments of life. Our busy schedules and lack of personal financial management can cost us our wellness. A lot of burden of financial stress can be avoided through sensible budgeting, saving, investing and living within your means.