The term finance usually equates to money. However, finance encompasses not just capital but also the creation and management of cash and investments. This means it deals with how you earn money and also how you spend that money. Financial wellness has to do with your relationship with money and its security regardless of the variables that could affect your future.
Finance is the key to unlocking all our material desires, but it can also be our downfall and a source of frustration when it isn’t managed properly. That is why Financial Wellness Month exists, to remind us to prioritize our financial well-being.
Financial Wellness Month is observed throughout January, and it comes right after the hustle, bustle, and spending that comes with the holiday season to help us slow down and prepare our finances for the new year and our lives as a whole.
Financial well-being plays a vital role in the lives of anyone who earns an income. Employees must understand this concept the most, and employers must prioritize educating workers on financial wellness. Studies show that employees burdened with economic issues yield low productivity in the workplace. Financial wellness month will be a perfect occasion for employers and employees to review their financial situation.
WHY FINANCIAL WELLNESS MONTH IS IMPORTANT
It helps you budget better.
Financial Wellness Month forces us to prioritize our financial health. This causes us to come face to face with our economic issues and helps us budget and plan better.
It reduces anxiety
Financial problems can significantly cause anxiety and depression in our lives. This month helps us understand that whatever financial issues we have can be salvaged and pushes us further in the right direction.
It encourages financial stability.
Financial Wellness Month causes us to face our financial statuses head-on and prioritize them. It also encourages us to put our finances in order as we work towards financial stability. Programs organized within this month place us on the first step in the right direction to achieving financial stability.
HOW TO OBSERVE FINANCIAL WELLNESS MONTH
Create a financial plan
Kick off the year on a good note by creating a financial plan for the coming year. Put down all your fixed and flexible expenditures, projected earnings, savings plans, and possible investments. This would give you an outlook on your finances for the entire year.
Create a budget
Many people run into debts and financial issues simply due to poor planning and living above their means. Today, we urge you to create a budget for your expenses and stick to it. Living within your means helps you reduce debts and save better.
Review your credit reports
Your credit score is the majority of your available and feasible finances. It depicts your creditworthiness. The higher your score, the better credit loans you can get. Reviewing your credit report helps you know where you’re at and how to get a handle on bill payments and limit your expenses.
At SmartMoney Education, our goal is to motivate, inspire, and guide you in your journey towards financial wellness. To learn more, get in touch with us today and set up a one-on-one session.
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