Amid the ongoing pandemic and the “Great Resignation” of 2021, many individuals have begun reassessing their overall wellness. While ensuring your physical, mental, and environmental wellbeing are taken care of, a component often overlooked is financial wellness. Many people wonder what it is and if they’re achieving it. Financial wellness and security go hand in hand; to achieve it, you must understand the concept of financial security. Today we’re sharing how to make these financial plans a priority in 2022.
What Is Financial Wellness?
Financial wellness is when you take control of your money and effectively manage your finances. Financial wellness can include many factors like:
- Budgeting and spending within your means
- Having enough money in case of an emergency
- Living relatively debt-free or able to manage your finances without the use of a credit card
- Having a financial plan for the future (you’re on track to meet your retirement or savings goals)
While the concept is straightforward, many people continue to struggle with their money. That’s because they need a more comprehensive approach to their financial wellbeing, one that builds lasting financial stability and strength. Below are some smart tips to help you achieve a state of financial wellness.
Build an emergency savings fund.
A home fire. A medical emergency. An unexpected job loss. Whatever the circumstances may be, you should have an emergency fund prepared in case the unforeseen happens. Many Americans, nearly half, say they wouldn’t be able to afford a $400 emergency. Ideally, your emergency fund should cover at least six months of your living expenses. Having some money put away can reduce your anxiety and the hardships that come with an emergency.
Navigate post-pandemic changes.
Before COVID-19 took the world by storm, many individuals were commuting to work, paying for childcare, and buying lunch out daily. With many people still working from home, they’re saving money on these expenses but spending more on entertainment, food delivery, and more. It’s crucial to reassess your budget and realign your spending habits to better navigate these cash flow changes.
Prepare for life events.
Just like building an emergency fund, preparing for life’s big events can equip you for a financially secure future. Whether you’re getting married, having a child, or buying a house, set up some time to meet with a financial planner to ensure you’re on the right path for financial security.
Save for retirement.
Retirement could be in the distant future or right down the road; whatever the case, it’s best to start saving as early as possible. Many individuals aren’t sure how much they should be putting away, how to use HSAs and IRAs, and how to know if they’re saving enough. On your path toward financial wellness, ensure your retirement goals align with where you are right now in life. Retirement planning isn’t one size fits all, so investing in your financial future now will take the worry out of retirement when that day comes.
Achieving Financial Stability with BHCU
Free yourself from financial stress today with BHCU! When you become a member, not only do you receive the support you need and comprehensive banking services you can trust, but we’ll also give you access to our friendly and knowledgeable staff who always maintain an unwavering commitment to helping you save. If you’re ready to make financial wellness a priority this year, stop in today or call us at 610-595-2929.