Financial well-being or “financial wellness” is as important as physical and mental wellness and it’s about more than having money in the bank. Financial well-being means feeling in control of your finances, being able to handle a financial setback, and being on track to achieve your financial and life goals. It means having the freedom to make choices that reflect your values and desires.
Budgeting, saving, and keeping debt under control are all components of financial well-being. If financial pressures or uncertainty are affecting your work or life, you’re far from alone.
Good financial health is like good physical health. It takes time, work, and discipline. It’s something you must work at regularly by taking a variety of steps all throughout life. Keep an eye on your spending habits, save for emergencies and the future (including having a plan for retirement), and change any habits that aren’t in sync with your goals.
Here are some tips:
Draw up a personal or household budget
Know how much money you have coming in, how much you can spend on necessities and luxuries, and how much you need to save to meet your long and short-term goals. If you share finances with someone else, talk about these issues together and try to reach an agreement on your priorities for spending and saving.
Make saving automatic
Set up automatic payday transfers into a savings account, tax-free savings account (TFSA), Registered Education Savings Plan (RESP), or other savings vehicle that suits your specific goals.
Apps like Mint (www.mint.com), Buxfer (www.buxfer.com), Digit (www.digit.com), and Simple (www.simple.com) can help automate saving and keep you on budget. Try also to set up automatic contributions of some of your pay into a Registered Retirement Savings Plan (RRSP), an employer-sponsored pension plan, or other retirement or investment account.
Build up an emergency fund
Make it a top priority to create an emergency fund you could draw on easily if you or someone in your family has a medical crisis or an unexpected loss of income. Add up your monthly expenses. Then multiply by three to six months. That’s how much money you should have set aside in your emergency fund.
Plan for the future
Go over your budget and financial goals at least once a year. Plan for short-term expenses you will have in the next year, such as the cost of a vacation or home repairs. Also, review whether you’re on track to meet long-term goals such as buying a home, paying for a child’s education, or saving for retirement.
Develop a plan for changing any habits that aren’t helping you meet your financial goals
Talk with a professional. If concerns about money are causing you to feel stressed, remember that help is available. Contact your employee assistance program (EAP) for resources and support on coping with everything from money worries to achieving financial goals. EAP services are confidential. You may also contact a financial advisor or financial planner.
Lesley MacKinnon
Manager, Safety & Disability Management
If financial pressures or uncertainty are affecting your work or life, you’re far from alone. Fortunately, you can boost your financial well-being using the tips on the left and the many resources available through LifeWorks.
Resources:
LifeWorks Link: Bethanycaresociety.lifeworks.com
username: bcs
Password: eap
Phone: 1-877-207-8833
Phone App: LifeWorks WorkAngel
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