Our relationship with money can influence our life in a positive way or a negative way. Those who keep a handle on their expenses and make wise choices on how they spend their money in a mindful way enhances their wellbeing. Those who do not keep track of their money and who end up living paycheck to paycheck find money has a negative influence on their wellbeing. These stressors can affect our emotional, mental, and physical health in a negative way.
As we continue through the COVID-19 pandemic, some employers have closed their doors and others have done wage cuts and in some cases layoffs with their employees. This loss of income can put additional stress and strain on people and their families. For those who have not been able to establish enough savings, they are having to create new ways to create income and reduce expenses.
Financial Wellbeing can be explained as having a sense of security and feeling though you have enough money to meet your overall need and lifestyle. This includes having control of your income and expenses and being able to do the things in life that you enjoy. Everyone’s financial security is different and therefore relative to each person and family. A good exercise is to complete the following sentence – ’I will be financially secure when …’
YOU CAN MANAGE YOUR FINANCIAL WELL BEING!
You may ask How do you do that?
- Know where your money goes by listing out all your expenses – fixed costs (mortgage, loans, utilities, etc) and variable costs (discretionary spending)
- Develop a budget using your income and allocation of expenses
- Include savings in your budget so you can prepare for the unknown emergency such as our current COVID-19 crisis
- Plan for major purchases in your life and know how you are going to pay for them
- Save for illness and retirement, and buy insurance to manage its financial impact on you
- Create a debt management plan to pay off loans in an efficient manner
- Do not make financial decisions when in a heightened emotional state
- Keep good financial records so you can have access to information when you need it
During our current pandemic some ideas to keep in mind on banking include using digital banking options such as mobile deposits and payments, limit contact with cash and card machines, and be aware of scams like fake charities and fake treatments. Take this time to understand where you are spending your money and create a meaningful and effective budget. By being proactive you can take control of your finances, reduce your stress, and boost your wellbeing.