Why Financial Wellness is Important?
Managing finances isn’t just stressful, it’s time-consuming. Without control of their financial health, employees bring their worries into the workplace. In fact, 37 percent of those surveyed said they spend three or more hours at work each week thinking about their personal finances.
Stress, loss of focus, low morale, and sickness are all issues that can arise from employees having low financial wellness, causing Indian businesses an estimated Rs.33 Crores per annum. In fact, 53% of workers admit to feeling stressed about their finances. Despite this, only 15.2% of Indian employers have a Financial Wellness Program in place.
What is Financial Wellness?
In very simple terms, financial wellness means the art of efficiently and successfully managing one’s economic life. Financial wellness is a combination of knowledge about your finances, making good financial decisions, and consolidating financial decisions into other important aspects of your life. Moreover, financial wellness means the capability of managing efficiently the short term finances and making preparations for achieving long-term goals simultaneously. Money plays a very important role in our lives and it has to be managed in a very wise manner.
The very simple concept of financial wellness encloses some of the below-mentioned major factors.
1. Making a proper budget and spending according to the budget.
2. Keeping a concrete track of expenses.
3. Being prepared financially for any kind of emergency.
4. Having a perfect plan for the future.
5. Being well-informed about the information which can be used in making correct financial decisions.
Make Financial wellness a part of employee wellness
To begin with, employers need to understand just how critical financial planning is for overall workplace wellness and happiness. Unfortunately, money is not something we discuss at home openly or learn about in school or colleges and even in B-schools. Thus, when we have enough money (or the lack of it), we don’t know what to do in that situation (apart from spending it, obviously). Just the way physical and mental wellness initiatives are playing critical roles in ensuring employees are happy not only at work but outside of work too, financial wellness programs can also be made an indispensable part of employee wellness. Here’s how:
- Organizations can tie-up with financial services firms that can handhold employees in educating and helping them understand their income and financial aspirations, and help create a viable long-term financial plan.
- These programs must take into cognizance that senior executives, middle management, and young professionals are at different life stages, income levels, and therefore, have different needs and challenges
- Aside from periodic interventions, helping employees plan for and save income tax can be an important event every year. Here too, hand-holding every step of the way, empowering employees with knowledge and actionable advice is vital.
Signs of Financial Wellness
Some of the major signs of financial wellness can be listed below such as
1. Having sufficient money to meet the necessities.
2. Being able to afford medical and health care facilities.
3. Sufficient savings for post-retirement life.
4. Being able to afford a good living standard.
5. Complete control over one’s own financial situation.
6. The level of financial stress is low.
Benefits of Financial Wellness
- Direct saving
- Independent Expert Banking assessment of the financial requirement and how it can be met
- Advice based on knowledge of the whole market
- Consideration of all options: PSB59min | CGTMSE Loans up to 5 CRORES
- Management focused on the business and not on the finances.
Basic Documents Required
1. Owner KYC (Pan Card, Address Proof)
2. Business Registration Proofs
3. Bank Statements for latest 9 Months
4. ITR, Financials for last 2 years
5. GST Returns for last 1 year
How FundsTiger.com can help
- Critically appraise the existing finance arrangements
- Present multiple options and help decide which is the best
- Recommend the right lenders and introduce them
- Coordinate the preparation of the information deck
- Negotiate the best terms and assist with the selection of chosen finance partner
- Assist with the process through to formal offer and the on-boarding process including negotiating key terms in the funding documentation.
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