Financial Wellness Importance !
Support November 26, 2022
Money, like emotions, is something you must control to keep your life on the right track - Natasha Munson
Essentially, financial wellness is the state of (monetary) well being that’s achieved when you know what you have, know where you’re headed (and move towards achieving that goal) and feel good about it. It means spending money within one’s need & capacity, preparing emergency funds, planning for the future, and being well-informed enough to make beneficial financial decisions. Like physical wellness, financial wellness should occupy a central place in our list of life goals. Unlike physical wellness though, it is often ignored or taken casually by people. According to research, with 69% of workers being stressed about their finances and 72% worrying about their finances at work, it’s not hard to see why financial wellness is an important factor to look into. (Access perks survey) It is also proven that an employee who maintains a balanced financial life will be more productive and more focused on their work.
When it comes to money, every penny matters and being aware of how you spend your money is an important aspect of feeling financially secure. Obtaining financial wellness gives a sense of financial security and freedom. It means you might not have to worry about a sudden emergency, job loss or career change that might impact your finances in the short term. While the phrase “money can’t buy you happiness” does have a strong meaning, it’s also true that achieving financial wellness does have its benefits.
Below mentioned are some benefits of financial wellness:-
1. Harmony between work and life - If an individual is struggling to make ends meet at the end of every month, chances are they are sacrificing areas of their personal life to make money. Having ample knowledge about financial wellness can also mean more freedom to find your passion and create a balance between work and personal life.
2. Better performance - Employees who are less stressed about money matters perform better in their roles. When employees are stressed, employers see a high error rate and poor quality of work. They are also prone to health problems (anxiety, depression and other mental health issues) emerge. By empowering financial wellness for your employees, employers are empowering better business performance.
3. Better financial planning - A high level of financial wellness gives employees the ability to make better, smarter decisions and manage a successful long-term strategy. When employees have a holistic understanding of their finances, they can create profitable strategies for dividing and potentially regulating their paycheque between bills, savings, investments and other commitments.
4. Reduces employee attrition - Post COVID-19, employee retention has become a great challenge for organisations. By offering financial wellness programs that include budget counselling, credit building and debt reduction services, employers are helping their employees to build more stable and secure financial lives which in return would attract more employees.
Financial wellness is an important aspect that organisations are beginning to understand. Financial wellness programs can be implemented by providing financial assistance, personalised financial advice and financial education. In simple terms financial wellness is the meaningful approach to handling, utilising and understanding your money. For some, it means stability. For others, it’s the absence of stress. But in reality, financial wellness has as much to do with having the right state of mind as it does with reaching your financial goals. Imagine your financial wellness program as your own financial bodyguard. The world is going to keep tossing harmful lies and crises your way but the steps you take towards protecting your finances now are meant to help protect your future you.