Over the past year, we’ve been bombarded with messages telling us to prioritize our physical and mental wellness. However, with countries the world over piling on record amounts of debt, it’s clear that we collectively need to focus on our financial wellness as well.

What exactly does financial wellness entail, and how can you improve it? Here’s what the experts have to say on the matter.

What Is Financial Wellness?

First and foremost, let’s clarify some definitions. What is financial wellness, exactly? According to financial advisors and experts, financial wellness refers to a person’s ability to manage their financial life effectively. There are many factors that may influence someone’s financial health and wellness, including:

• Having a solid financial plan for the future
• Spending only within one’s means
• Having a financial safety net or backup plan for emergencies and crises
• The knowledge required and the ability to make good financial choices

This list is by no means exhaustive. However, these four factors are critical in determining a person or employee’s financial wellness.

How Can I Improve My Financial Health and Wellness?

Now that you understand what financial wellness is, let’s dive into how you can improve it. Whether you seek to improve your own fortunes or offer your employees a path to financial wellness, there are a few key steps that you can take. These steps towards financial health include:

• Creating a budget and sticking to it for the long term
• Reach out to a financial advisor for help understanding your finances
• Start setting aside money for an emergency fund, if you haven’t already
• Cut unnecessary spending and focus on repaying debts

These are but a few of the steps that you might be able to take to improve your personal financial wellness.

What Can Employers Do for Their Employees?

As an employer, you may believe that it’s not your responsibility to help your employees manage their finances. To a certain extent, you’d be right. However, no matter how responsible an employee may be, we all encounter unplanned disasters. One such disaster can quickly spiral into the loss of a great worker if not headed off at the pass.

Some steps you can take as an employer to improve the financial health of your employees include:

• Offering courses in financial literacy
• Allowing earned wage access so that employees don’t take out predatory loans
• Giving employees access to a 401k or other retirement planning tools
• Offering easy-to-understand savings tools to let employees build their savings

Taking even a few of these steps can make a life-altering difference in the financial health of your employees.

Let’s Review the Facts About Healthy Finances

Financial wellness, despite the way it’s talked about, is more than a matter of personal responsibility. Its presence or absence often comes down to the tools someone can access to improve their financial health. However, with the right employer and the right mindset, healthy finances can become accessible for anyone.

If you found this article helpful and would like more financial advice, check out our blog each day for more content like this!

Jane