The US Census Bureau reported that the spending habits of Americans have changed dramatically over the years. Based on statistical data from the US Labor Statistics, an average American spends most of his earnings on transportation, food, and housing.
This is supported by findings in the 2016 Consumer Expenditure Survey, which indicated that the biggest portion of a person’s income goes to spending on housing at 41%, followed by transportation at 16% and food at 14%. The rest of the amount goes to healthcare at 8%, utilities 7%, entertainment 5%, clothing 3%, education 2% and miscellaneous expenses at 3%.
What are we driving at? Simply to tell Americans that they need to save more and become more financially healthy because they badly need it.
A survey on the annual Economy and Personal Finance by Gallup revealed that only one in three Americans keep track of their spending, placing the majority mostly unaware of where their money goes.
Those earning $75,000 annually and up are the most likely to keep a detailed breakdown of budgets and expenses. This is the same group who take advantage of financial advisers or accountants to help with financial planning, such as the ones you provided in financial wellness programs for employees.
Not just about money, but the discipline as well
The common misconception of financial wellness is that it is often associated with saving money. Although in part it is true, however, it is just one aspect of financial wellness.
One of the key ingredients to financial wellness is discipline. One needs to be fully committed and determined to aim for financial wellness. Discipline is an integral part of the deal and should also be given due attention.
One of the factors affecting Americans to neglect financial wellness is the advent of technology. The convenience of simply going online to transfer money instantly or easy access to credit has caused increased spending for most people.
Education and investing
Investing your money to earn interest over time is one of the best ways to secure financial wellness. You can seek expert advice from competent consultants in your company’s financial wellness program for employees
Take a risk in investing but make sure to calculate your risks. If you are new to investing, you can also consult with company advisers on employee financial wellness programs at work.
Most companies have established employee financial wellness programs since it has been found to be a strong support component in the workplace. You can consult a financial adviser to help you out with ideas to help save money and manage your finances efficiently.
The value of saving
Stop spending money that you don’t have and start living within your means. If you need to begin establishing a “bare bones” budget for your day to day needs, then go ahead. This can cut down your spending a lot.
Break down your income and set a portion of your earnings to settle your obligations. The sooner you act on it, the better because you might continue incurring surcharges and penalties as each day passes.
So, by now you start to understand that financial wellness is not just about money alone, it is also equally important to be in the know when it comes to financial wellness by establishing and developing new habits and changing attitudes towards money, spending and lifestyle, especially one that could benefit you for life.