Break Free From Financial Stress

About half of Americans believe they are unprepared for a sudden financial need such as the purchase of a new car, appliance or furniture or a significant home repair. Whether it’s saving, budgeting or planning, addressing our financial goals is beneficial for our overall health and wellbeing.

The MyMoney Five

Making the most of your money starts with five building blocks for managing and growing your money – The MyMoney Five. Keep these five principles in mind as you make day-to-day decisions and plan your financial goals.1

1. Earn
  • Your employer has to subtract certain taxes and other items from your wages every pay period. Your take-home pay (net income) is what you receive after any taxes and deductions are subtracted.
  • Usually, your deductions and withholdings include federal, state and city income taxes, Social Security and Medicare taxes, your contributions for retirement savings, and payments for health insurance provided as part of your job.
  • Be sure you take advantage of all the credits and deductions that help lower your taxes.
  • It’s a good idea to sign up if your employer offers a retirement savings program. Many employers will match part of every dollar you save this way, and you will benefit from it when you retire.
2. Borrow 
  • Borrowing money is a way to purchase something now and pay for it over time. But, you usually pay “interest” when you borrow money. The longer you take to pay back the money you borrowed, the more you will pay in interest.
  • It pays to shop around to get the best deal on a loan. Compare loan terms from several lenders, and it’s okay to negotiate the terms.
  • When repaying a loan, it may be better to pay more than the minimum amount due each month, so you will have to pay less in interest over the life of the loan.
  • One of your most important aids when shopping for a loan is the APR – the Annual Percentage Rate. This is the total cost, including interest charges and fees, described as a yearly rate.
  • Paying your bills on time will help increase your credit score. Even if you fell into trouble with borrowing in the past, you can get on solid footing and rebuild your credit history by making regular payments as agreed.
Annual Free Credit Report

You are entitled to a free copy of your credit report every 12 months from each of the three nationwide credit bureaus. Go to www.AnnualCreditReport.com or call toll free 1-877-322-8228 to order the free reports. Beware of imposter sites.

3. Save & Invest
  • An easy way to save is to pay yourself first. That means each pay period, before you are tempted to spend money, commit to putting some in a savings account. See if you can arrange with your bank to automatically transfer a certain amount from your paycheck or your checking account to savings every month.
  • People who keep track of their savings often end up saving more, because they have it on their minds.
  • If you are making investments, it’s good to consult with a qualified professional about your plans. Before you purchase investments, be sure to build an emergency savings fund to cover your needs for at least three months. Keep the savings in an insured bank or credit union account that you can access if you need it.
  • Many professionals call themselves “financial planners.” Before you hire one, ask for a description of the services offered. A good place to check the credentials of an investment advisor is your State’s consumer protection office, the State’s Attorney General’s office, or the issuing agency for any professional licenses or certifications.
4. Budget & Spend
  • Make a budget or a plan for using your money wisely. Set short and long-term financial goals and manage your money to meet them.
  • A good way to take control of your spending is to set the maximum amounts you plan to spend each week or each month. Once you’ve set the maximum, stick with your plan.
  • It’s helpful to track your spending over a few weeks or months to get a handle on how you are using your dollars and cents. Look into using online systems or phone apps for keeping track of your spending – you will be amazed at what you’ll learn about your habits!
  • Be careful not to let a sale or discount coupon persuade you to purchase something you don’t really need and that isn’t in your spending plan.
  • When planning a big purchase, take time to comparison shop and check prices at a few different stores, by phone or online.
5. Protect
  • A good system for keeping personal money records will include copies of important documents like your will, property ownership documents, and information about savings and insurance. It should include overview of what happens to property after a major life event occurs.
  • Assume that any offer that “sounds too good to be true” – especially one from a stranger or an unfamiliar company – is probably a fraud.
  • Look at your bank statements and bills as soon as they arrive and report any discrepancy or anything suspicious, such as an unauthorized withdrawal or charge.
  • Be wary of request to “update” or “confirm” personal information, especially your Social Security number, bank account numbers, credit card numbers, personal identification numbers, your date of birth or your mother’s maiden name in response to an unsolicited call, letter or e-mail.

Budgeting Basics

Make a budget worksheet to evaluate which expenses are flexible and which are fixed for at least two or three consecutive months. This will give you an idea of how you are spending your money and changes you can make to improve your situation.

Free Budgeting Worksheet

Are you interested in utilizing a great interactive resource for budgeting all of your basic expenses? Check out the worksheet below by pressing the Download button.

Download Budget Worksheet

Fixed Expenses

Fixed expenses are items you have little or no control over. You will pay a fixed amount for these expenses each month. Remember, you have some control over certain expenses before you sign a contract, for example, a short-term or payday loan, car loan, or home mortgage. You should shop for the best value before committing to the payments.

Examples include: health insurance, car insurance, life insurance, homeowners or renters insurance, rent or mortgage, auto loan or lease payment.

Flexible Expenses

Flexible expenses are expenses that you can control – think about what you need and what you want. This will help you control your spending in this category. What are some ways that you could control the costs of these expenses?

Examples include: groceries, coffee, restaurants, utilities, gasoline, internet, cable, phone or cell phone, car or home repair, activities or hobbies, savings, and emergency savings.2 

References:

  1. https://www.mymoney.gov
  2. https://www.mycreditunion.gov/tools-resources/Pages/Personal-Budgeting-Worksheet.aspx

Transforming Health Care Holistically

Transforming Healthcare - Blog Feature Graphic

What’s the difference between wellness and wellbeing? While wellness refers to the physical health of an individual, wellbeing is the holistic view of the individual’s health. Illness and chronic disease don’t just affect physical health, but also the mental and emotional state. And if one suffers, so will the other.

Whole-Person Health & Wellbeing

Your Wellbeing

Wellbeing includes wellness of the whole individual which includes not only the physical health, but also the psychological (mental and emotional health), occupational, social and financial health.

“Health is a state of complete physical, mental and social wellbeing, and not merely the absence of disease or infirmity.”

– World Health Organization

Each part of wellbeing influences and is influenced by the other parts. In order to maintain a balance of health, all five elements of wellbeing have to perform at their peak:

  1. Physical: Physical health and vitality, disease risk and injury
  2. Psychological: Overall mental and emotional health, behaviors, beliefs and resiliency
  3. Occupational: Work environment, safe and healthy working conditions
  4. Social: Interaction with family, friends, coworkers and other people
  5. Financial: Budget, income, savings, expenses

“Today, we accept that there is a powerful mind-body connection through which emotional, mental, social, spiritual, and behavioral factors can directly affect our health.”

– National Institutes of Health (NIH) MedlinePlus 1

It’s no doubt what the power of prevention can do for an individual’s wellbeing. At USPM, we have seen individuals lose weight, come off their medications, lower numerous health risks, and some even reverse their chronic conditions. Treating the individual’s wellbeing holistically is the key in transforming healthcare. While technology solutions are critical to drive engagement and usability, technology alone is not enough to create sustainable behavioral change.

Whole Person Approach

USPM strongly believes that human interaction is important to drive behavioral change that results in positive outcomes. USPM employs health coaches and registered nurse care managers to engage and empower individuals to succeed on their journey of health and wellbeing. Our passion for better health and mission of More Good Years® is what drives us to collaborate together to ensure we address the whole person and their health needs by taking into account the physical, mental and emotional, social, occupational and financial concerns.

References

1. https://medlineplus.gov/magazine/issues/winter08/articles/winter08pg4.html

Financial Fitness: Essential to Your Employees’ Wellbeing

About half of Americans believe they are unprepared for a sudden financial need such as the purchase of a new car, appliance or furniture or a significant home repair, according to Gallup Daily tracking survey through 2015.1

So how can we get financially fit?

How do we find balance between spending and saving – between living in the present and saving for life’s unexpected financial needs? And why is this important? First let’s define financial wellbeing – it is defined as a state of being wherein you:2

  • Have control over day-to-day, month-to-month finances;
  • Have the capacity to absorb a financial shock;
  • Are on track to meet your financial goals; and
  • Have the financial freedom to make the choices that allow you to enjoy life.

Organizations that don’t implement financial wellbeing into their wellness programs are missing the  mark. In a survey conducted by the American Psychological Association, money is a somewhat or significant source of stress for 64% of Americans but especially for parents of children below the age of 18 and younger adults (77% of parents, 75% of millennials, ages 18 to 35, and 76% of Gen Xers, ages 36 to 49).3

The added financial stress has a significant impact on many Americans’ lives. Some are putting their health care needs on hold because of financial concerns.

Nearly 1 in 5 Americans say that they have either considered skipping (9 percent) or skipped (12 percent) going to a doctor when they needed health care because of financial concerns.3

Many adults are coping with health and lifestyle challenges and are beginning to recognize the connection between stress and physical and mental health.

  • Money and work remain the top two sources of very/somewhat significant stress, but in 2015, for the first time, family responsibilities emerged as the third most common stressor (54 percent).
  • The majority of adults report having at least one chronic illness (67 percent). In addition, many adults lack exercise and remain sedentary for much of the day. More than 10 percent of adults also report having a mental health-related diagnosis (13 percent for anxiety disorder and 16 percent for depression).
  • About two in five adults (39 percent) report overeating or eating unhealthy foods in the past month due to stress, compared to 33 percent in 2014.
  • Adults in urban areas have a significantly higher reported stress level on average than those in suburban and rural settings (urban: 5.6 on a 10-point scale, vs. 5.0 for suburban and 4.7 for rural).
  • Almost one-third of adults report that stress has a very strong or strong impact on their body/physical health and mental health (31 and 32 percent in 2015, compared to 25 and 28 percent in 2014, respectively).4

To help employees improve their financial fitness, organizations should provide financial education, programs, and other content into their wellness programs.

6 Ways Employees Can Improve Their Financial Wellbeing

  1. Make a simple plan to monitor and track your spending habits and to gain control over your financial decision making.
  2. Have a budget and stick to it. Set short-term and long-term goals to provide structure for your financial decision making. For example, set a spending budget for the holidays. More stuff doesn’t mean less stress.
  3. Spend some time researching before making major financial decisions to ensure you make the most-informed financial decisions.
  4. Get smart about money – Use free educational resources available at http://www.consumerfinance.gov.
  5. Don’t compare yourself to others. Compare yourself to your own standards. Don’t purchase things to keep up with the Joneses. Instead think about long-term impacts of every purchase.
  6. Avoid impulse shopping. Keep your spending under control by stopping to think about whether you need that purchase or postpone the purchase to a later date if you can.

References

  1. Gallup, Inc. “Half of Americans Unprepared for Sudden Financial Need.” http://www.gallup.com/poll/188009/half-americans-unprepared-sudden-financial-need.aspx?g_source=FINANCIAL_WELLBEING&g_medium=topic&g_campaign=tiles
  2. Consumer Financial Protection Bureau “Financial well-being: The goal of financial education.” January 2015: http://files.consumerfinance.gov/f/201501_cfpb_report_financial-well-being.pdf
  3. American Psychological Association. “Money Stress Weighs on Americans’ Health” 2015, Vol. 46, No.4 http://www.apa.org/monitor/2015/04/money-stress.aspx
  4. http://www.apa.org/news/press/releases/stress/2015/highlights.aspx