Tips for a Financially Healthy Person
Calls to Beacon and other EAPs concerning financial issues and money management are rising. Accompanying economic troubles is heightened stress related to declining savings and an insecure job market. Some people are more likely to relieve stress through unhealthy activities like drinking, gambling or emotional eating. In addition, economic pressures can also lead to increased conflict and tension within our relationships. There are some basic principals that individuals can follow to mange money within these challenging times. A Beacon counselor will gladly assist you and your family in addressing financial concerns and how they impact your physical, physiological and economic well-being.
Top 10 Tips
- Track spending to know where your money goes. Identify expenses that can be reduced or eliminated--and take action.
- Expect and prepare for emergencies. Aim for six months worth of expenses set aside in a liquid account.
- If housing costs are too high, consider downsizing, renting or home sharing with friends or family members.
- Communicate about family finances regularly with your spouse or partner, and any of your children you feel are old enough to be involved.
- Commit yourself to spending within your means. A line of credit is NOT an emergency fund or extra income.
- Do not try to "keep up with the Joneses."
- Childcare is the single largest expense for most working parents, so investigate all reasonable options. Explore "nanny sharing", baby-sitting co-ops, subsidized daycare or if one parent were to be a "stay at home" or "work from home".
- Pay for unreimbursed medical expenses and dependent care with pretax dollars using a flexible savings account. Check with your employer for availability.
- Remember that you are the single greatest role model in your child's financial education. Teach good money management habits.
- Get professional assistance and support. Contact your employee assistance program (BEACON) for information and referrals.
Source: Balance Financial Fitness Program (2005). Tips for a financially healthy family.