A holistic approach to effectively manage your economic life
Let’s answer that question in this article and outline some steps you can take to ensure your financial well-being.
Financial wellness is like a fitness plan to improve your relationship with money.
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Of course, we all have money problems from time to time. Just as eating healthy and exercising makes us feel good about our bodies, positive financial habits help us feel good financially. Simply put, financial wellness encompasses all areas of your life financially.
It’s about knowing how much we need to spend, making wise financial decisions, and being aware of upcoming bills and debts to pay. And while we would all like to have millions more in the bank, good money management involves making the most of what we already have. Sadly, we are not taught financial wellness in school, and therefore not everyone understands the impact of creating positive financial habits.
The way we manage our finances has a ripple effect on our lifestyle and stress levels.
According to Money Habits, 65% of women and 52% of men said financial matters cause them the most stress. On average, workers spend three hours per week and one sick day per year on economic issues. This stress can come from many reasons, such as having trouble paying your bills or your budget. Additionally, poor mental health can make money management more difficult, while worrying about money can make mental health worse. It’s a vicious cycle that can be broken with the help of the following financial wellness mantras:
Spend wisely and within your means: To become financially secure, we need to sit down at the start of the month, analyze our income, and plan our spending accordingly. We need to assess where we are in terms of spending and budgeting several times during the month and make any necessary adjustments. This type of saving and budgeting is smart financial management and gives us a sense of control over our finances.
Have an emergency fund: Even though we hate the vagaries of life, we cannot escape them. A surprise car repair bill or a medical emergency can throw our budget off balance. This is where an emergency savings fund comes to the rescue. The current pandemic and its medical and financial side effects have shown us the importance of a contingency fund. We need to set aside at least 3-6 months of our income to make sure our budget gets through unforeseen expenses and we don’t have to use our credit cards to cover emergencies.
Have a financial plan for the future: No matter what age you decide to retire, it’s neither too early nor too late to start putting money aside for your retirement years. It is best to start in the first few years of income. But even if you ran out of funds then, you can start now. It doesn’t matter how small the amount we can put aside; it can be increased as our income increases.
Get the insurance you need: Everyone tells us how to invest in a good health insurance plan, but no one tells us that we should also add disability insurance to the portfolio. At the same time, the role of life insurance in protecting your survivors cannot be overstated.
Practice mindfulness about money: It is a habit that helps us become more aware of how we spend, save, and invest. When we are aware, we have more freedom to manage money expertly, without giving in to impulses. Mindfulness of money will not magically make money appear in our bank account or wipe out a personal loan. Nonetheless, it has far-reaching benefits, such as reducing stress, improving self-awareness, and improving focus and decision-making.
Workplace financial wellness programs
Just because financial well-being is personal does not mean that it is a purely individual endeavor. The topic of financial health has become so crucial that employers are mobilizing to deliver financial wellness programs in the workplace.
Heal yourself india presented by ICICI Lombard in association with The Times of India, is an initiative that lets you know your current wellbeing score so that you can immediately start your path to real wellbeing. Because Well-th is a real wealth! If you want to determine your level of financial well-being, you can
self-assess and find out about it.
Disclaimer: This article was produced on behalf of ICICI Lombard by the Times Internet Spotlight team.