What better way to start 2023 than setting goals to improve financial wellness? As the holidays, and the associated spending wind down at the start of every new year, it’s time to focus on the importance of financial wellness and health. Studies have shown that financially stressed employees are more likely to struggle with their workplace productivity. January is the perfect time to start fresh and get your business’s finances in order, while also providing employees with tips on how to manage their own money this upcoming year.
Some ways to improve financial wellness are as follows:
Efficient Planning – Creating a financial plan for the upcoming year will help keep track of expenditures, savings, and investments over time. As you compare your plan year to year, you will see whether your net worth is increasing or decreasing and where changes need to be made.
Budgeting – It is no secret that many people and companies run into debt and other financial issues. In most cases, this is due to overspending and poor planning. It is highly encouraged that everyone creates a personal budget to grow savings.
Reviewing Reports – Sit down regularly and review your credit report and score, regardless of whether you are always paying your bills on time or not. Doing this helps you see where you stand financially and can help you identify credit card fraud and identity theft.
Reducing Unnecessary Spending – If you begin to track your spending, you will be able to identify where you may be overspending. This will help you determine what costs to cut back on and if what you are spending your money on is worth it.
Set Up Emergency Fund – There are many benefits to having an emergency fund including reducing stress, encouraging saving behavior, and helping to avoid debt. One easy way to get started setting up a reserve fund is by setting aside a smaller amount at first and then slowly adding more month after month.
PEX can be your company’s first step towards managing expenses responsibly and keeping financial stress at bay. Our platform keeps your spending in check by allowing you to have full control over the cards you distribute, and determine where, when, and how funds can be used. Each cardholder can have their own approved merchant categories and spending limits, and PEX reports transactions that you can view in real-time.