Stress comes from lots of sources.
If you are talking to a room of 100 people, one may be dealing a bereavement, another dealing with a relationship problem, another a work-related stress and another a weight concern to name just a few that we encounter. The one thing that has become obvious working in the world of financial wellness is that money concerns affect nearly everyone in the room.
Financial stress is generated from a financial event that was unexpected or unplanned for. But they can be planned for, even the unexpected ones.
Financial Wellness means identifying future financial events that you are likely to encounter in the course of normal life. Let me give you a few examples.
If you have kids you should expect to need a third level education fund. Expensive times those college years!
Any employee with an income that they are reliant on to feed themselves or others should always protect that income should they unable to work for any reason. Accidents happen!
Everyone should have an emergency fund, in case the emergency does actually happen!
You should expect to retire.. one day!
These are just a few examples. The list is endless.
Financial Wellness drills down on these future financial events and teaches you to first identify them and then to attach a hierarchy of importance to each. Once you have identified these future financial events, you can then look at using your disposable income to work towards addressing them.
Working with a financial advisor can teach you to quantify future financial events and show you how to start paying for them now. Should you use insurances or savings accounts? Bank accounts or investment-based account? Should you use pensions or buy an investment property?
Educating yourself and having a plan of action will relieve and reduce financial stress. If you have no financial surprises in your financial future, life will be an awful lot easier and those unwanted financial stresses will be dealt with well before they arrive.
Source: our partner Wrkit.
Author: Nick Lawlor
Nick is a Certified Financial Planner, Qualified Financial Adviser, Specialist Investment Adviser and the Managing Director of New Beginning Financial Services. Nick leads the Employee Financial Wellness team and is responsible for all elements of the service from tailored programme design to implementation. Employee Financial Wellness is delivered through seminars, individual on-site clinics and one-to-ones.