Financial wellness can be defined in many different ways, and because money is implicated as a major stressor in society; it plays a major role in influencing many individuals from a mental or even physical standpoint. Wellness isn’t about how much money you make, it’s about money management, your attitude towards your financial status and your relationship with your money. A financially well person is someone who is the most money organized and the least stressed about it.
Because financial wellness affects aspects of our current and future lives, it is a topic worth discussing further in detail. Here is why financial wellness matters.
It may influence employee performance
If you haven’t heard it somewhere before, allow me to educate you: money and money related issues are a key influencer in employee performance. When negatively affected by these, an employee’s performance may go down. The effects of money related issues could be on your mental or even physical health and they could directly hinder how well you work. Employers who have acknowledged this fact and work towards developing the wellness of their employees have better-performing employees.
The stress, anxiety, depression, sleep deprivation or even lack of motivation that comes with poorly handled money matters will impact how well an employee will perform. The only solution is to introduce concepts such as financial knowledge, introducing concepts such as debt management, planning, and other financially relevant topics. This will however not be enough, taking a step further to help implement these concepts in their financial habits and put them on the right track towards wellness.
With an improved attitude and a sense of satisfaction towards your money management skills and current finances, many people are sure to perform better as compared to anyone with overwhelming financial stressors.
Habits that help you develop financial wellness
Financial wellness isn’t achieved in a day. You must work hard to properly manage your money and plan for the future while you’re at it. Research suggests that there are four factors upon which financial wellness depend. These factors are instrumental in establishing habits that will put you on the proper road to wellness.
Most people have heard to never spend more than they earn. When you are working towards stability and satisfaction, you must learn to limit your expenditure and know exactly how much you spend and what you have left. Sure you might enjoy the occasional splurge without a care in the world, but getting an accurate and reliable number is a better you option. You can still splurge, but responsibly, without having to worry later if you spent too much or if what you have will be enough to cover your costs.
You do not need to cut yourself off completely from borrowing. However, borrow just enough that you can cover on your next paycheck and still have money left over. When you borrow, consider the loss to your long-range goals, this will help manage your borrowing habits.
Budgeting and planning are a great way to reduce money-related stress. It may seem like you held back from getting certain things, but you can plan for them with your next pay. Instead of sitting around wondering where your money went, trying to figure out where you might get an extra buck for this bill, you can depend on your budget to guide you through what you’ve spent on.
This is a major factor that should guide you towards financial wellness. When you automatically save a certain amount every month, you eliminate the chances of spending that extra on something unnecessary or not as important as well, your future. Your future self will thank you when there is an emergency or an important purchase that your regular pay cannot cover.