Financial wellbeing is just as important as physical and emotional wellness. Try these healthy financial habits to reduce stress and help you achieve your long-term goals like buying a home or saving for a child’s college.
- Create a budget. Knowing where money goes each month can help you set parameters for living expenses, bills, savings, and discretionary spending.
- Live within your means. Spending less than you earn helps to bolster savings for an emergency fund, big purchases or saving for retirement.
- Pay off debt. Make a plan for paying off loans and credit card balances as quickly as possible to reduce interest and improve your credit score.
- Automate savings. Pay yourself first! Set up an automatic transfer to a savings account after each payday. Aim to save at least six months’ salary for emergencies. Even $25 a week can add up to $1,300 in one year.
- Save for retirement. Automatically deduct retirement from your paycheck. Contribute as much as you can to employer-sponsored retirement plans, especially if your employer makes matching contributions.
- Consult an expert. For information and resources to help improve financial well-being, contact your employer’s Employee Assistance Program (EAP) for financial consultation services or hire a financial advisor to structure investments so you can gain tax advantages.