There is a growing trend these days for employers to provide financial well-being courses and lectures for their employees – As we know financial matters can be pretty challenging at times particularly for the young so any help an emplyer can give must be applauded.
But what does financial well-being mean and how does it translate to those in or about to enter the post – work phase of life?
Financial wellbeing is about feeling financially secure with the knowledge of having enough money to meet your needs. It’s being in control of your financial position and your day-to-day expenditure. Perhaps importantly of all, it’s about having the financial freedom to make the lifestyle choices that you want.
How this is defined in practice will of course depend on where you are in the life cycle and may have an entirely different meaning for the younger generation who may be striving to secure a decent job, home and family. For the older generation the emphasis shifts to securing a good and sustainable lifestyle, the ability to cope with a financial shock and perhaps the financial security of the loved ones we leave behind.
In developing our RetireEasy LifePlans, financial well-being was at the forefront of our ideas and goal. We want our customers to be able to model in an engaging and meaningful way, the sustainability of their finances matched to their aspirations and remove the fear of using asset values to boost income, where necessary.
We know from the feedback we receive that we have achieved that goal.
Here are a few tips to sustain financial wellbeing.
· Identify your fixed and variable expenditure items per month i.e. your usual monthly spend. Then add the one-off and annual costs –probably mostly fun stuff such as meals out, holidays, birthday and Xmas expenditure and some less exciting items such as annual insurance premiums or subscriptions.
· Once you know this detail inside out you will be able to compute what we call your ‘’Desired Income’’
· If you have a spouse or partner talk it through to ensure you both know your financial situation and keep it under review.
· Avoid ‘’Keeping Up With The Joneses’’
· Sometimes it is difficult to buck human nature but there has been a lot of research that shows that a negative outlook on life to a degree can manifest itself when comparing lifestyle against a family member or friends.
· We all love to do different things – travel, gardening, cars – have the conviction to immerse yourself in what YOU want to do with your time and money.
· Life can bring about serious challenges from time to time and it is very easy to say try and stay positive. However, if your financial position is known and under control well that’s one thing you won’t need to worry about.
· Financial shocks can be a real worry to anyone. Try and make sure that any investments you have are well diversified and you have identified and are happy with the risks you are taking. If you hold a lot of cash make sure you spread it around with the banks and other providers.
· In many cases, the most difficult consideration is how and/or when to pass assets and wealth to your chosen beneficiary/ies. If you are married or have a partner talk about this and try to agree a strategy. Make a will and keep it under review.
· Consider Lasting Powers of Attorney to help and protect your loved ones.