Economists predict that 2023 will be a difficult year for consumers, as the cost of living is expected to rise and further interest rate hikes are expected. We’re living in a high-inflation, low-growth environment, and that can turn up the pressure on our relationships with our finances.
Getting by in an adverse economic climate leads to stress and anxiety, and that can have an impact on our health. Working to re-establish a positive relationship with your finances can lead to financial freedom and improved mental and physical wellness, according to Denise Neethling, Head of Marketing at Earned Wage Access Fintech, Paymenow.
“Maintaining a healthy relationship with your money means understanding how money works and how to best manage it,” Neethling says. “It means using your money to help you maintain good health, reduce stress (no more micro-lenders and loan sharks), and invest in things that will support you long term (including financial education).”
Keeping on good terms with your finances can be a difficult task, especially when unexpected expenses arise or when you’re trying to make ends meet. With February being Healthy Relationships Month, Paymenow has the following seven tips that can help you take control of your finances and feel more secure and confident in our financial decisions.
- Set financial goals: Decide what you want to achieve financially and set specific, measurable goals to reach them. This could include saving for a down payment on a house, paying off credit card debt, or building an emergency fund.
- Create a budget: Knowing where your money is going each month is key to staying on top of your finances. Create a budget that includes all of your income and expenses, and stick to it.
- Make saving a priority: Set aside money each month for your financial goals and make it a non-negotiable part of your budget. This could be as simple as putting a percentage of each paycheck into a savings account.
- Take advantage of early access to earned wages: Companies like Paymenow offer employees the option to access their already-earned wages before their next paycheck. This can help you avoid the stress and financial burden of unexpected expenses, help you stay on top of your budget and ensure that you don’t get into unnecessary debt.
- Be mindful of your spending habits: Pay attention to how you’re spending your money and make changes as needed. This could mean cutting back on unnecessary expenses, or finding ways to save money on things you need.
- Educate yourself: Stay informed about your finances and take advantage of any resources available to you. From financial literacy classes to online resources, there are many ways to learn more about personal finance and make informed decisions.
- If you’re an employer, take the time to listen to your employees and understand their financial situations. There are services, such as earned-wage access, that can easily and simply alleviate many financial stresses. These services can create enhanced financial security and literacy amongst employees, and can lead to complementary business benefits such as increased productivity and reduced absenteeism.
‘By following these tips, you can take control of your finances and build a healthy relationship with your money. With a clear understanding of your income and expenses, and a plan in place to reach your financial goals, you can feel confident and secure in your financial decisions. And with the added benefit of early access to earned wages, you can stay on top of unexpected expenses and keep your budget on track, without getting into debt,” concludes Neethling.