Spending money responsibly? 2022
How has your financial wellness been in the month of Janu-worry? Well, here are some tips to show that you can have control over your financial situation and that your financial well-being can be managed:
Don’t overthink it, start with the basics
Taking control of your finances may seem like adaunting task at first, but once you start to unpack your financial stance, you will begin to recognize areas where you can improve.
Start by working out what you owe, for example on a clothing account or credit card. Do you have any fixed expenses (E.g. rent, insurance, medical aid) and lastly work out a rough estimate of how much you’ll earn and any other income you might receive.
Set a budget for the entire year
That’s right, setting a budget for each month will help to keep your financial wellness on track throughout the year.
If you have access to a smartphone/device making use of budgeting apps can really come in handy and serves as an easy alternative to track your spending habits. When budgeting, make a point of it to check up on which categories you are spending most of your money on. Discuss your budgeting plans with your partner/spouse and older children/family members (living with you). It is important that everyone in your household works together and understands the benefits of sticking to the budget.
Save for the future
Saving should never be overlooked, the same goes for investing, and paying off debt. When you have worked out what you need to pay and where you can cut expenses, start to delve into those options. It is always a good option to start by paying off your most expensive debt. Once that is out of the way, you can start looking to the future, be it a big purchase or a retirement annuity, your future self will thank you!
An emergency fund can be a real-life saver
Being financially prepared for emergencies and times of uncertainty is one of the most effective ways to protect yourself and your overall financial well-being. Start by minimizing your non-essential spending and putting money aside whenever you can. If there is one thing, we have learned during the midst of the COVID-19 pandemic, it is that nothing is guaranteed, which is why now is the time to start saving, no matter how small.
See where you can free up money
If you can't find a gap in your budget to save, go have another look at your budget and determine where you can possibly make space for savings, for example:
If you are signed up to a subscription service, ask yourself if it's covering any of your daily needs.
Pay on time
Automation can help you stress less about remembering on what dates all of your payments are due, thus setting up debit orders just makes your financial life so much easier. This method of payment will not only help you pay on time but take the hassle out of the process and keep you on track.
If you can't afford debt, don't do it
Don't take on more debt than you can currently handle. When you find yourself in a financial predicament, it's tempting to take a short-term loan to get through the month, or to buy on impulse. But you will only end up in trouble later, don't do it!
What is Employee Financial Wellness?
Financial wellness or financial well-being, can be defined as a person's overall financial health and ability to deal effectively with money related matters.
Financial wellness is a term that increasingly pops up amongst employers, this can be due to many reasons, but most commonly, employees being stressed about their finances, especially their personal finances. Thus, organizations are making it a priority to assist employees with financial wellness and stress management. This can be done by encouraging employees to utilize the services of a professional counsellor to help them manage stress and improve their spending behaviour or to attend a Financial wellness programme focussed on Financial Education, Debt counselling and Behavioural change.
If an individual struggles to take control over their financial well-being, it can affect one's physical or mental health.
Financial stress can lead to absenteeism and presenteeism.
