Financial stress - taking positive steps
Hello everyone,
Very exciting times with our new Newport & Wildman website officially launched. This new website will help our customers to enhance the value of their EAP. Please see more in the article below. Right now I would like to draw your attention to a recent HR study which found 80% of the top five health concerns for employees are mental health related, 41% admit to being distracted at work because of financial worries (presenteeism), 31% of employees say they have taken unexpected time off to deal with a financial issues (absenteeism).1 The 2018 Australian Securities and Investments Commission (ASIC) report showed 18.5 per cent of consumers were overwhelmed by their credit card debt load with outstanding balances now totalling $45 billion.2 We learn to live with underlying stress around our finances but these statistics show that the impact on both life and work can be significant. What can we do individually and as employers to take positive financial steps without becoming overwhelmed?
How individual employees handle financial stress varies greatly. Breaking down and understanding the underlying issues can be the key to helping employees become more resilient. Here are some basic tips on reducing finance-related stress:
1. Learn to budget - Creating a budget gives you clarity and a tangible place to start in terms of understanding where your money is going and how you can reduce spending. If your financial situation is causing you stress, it’s vital to create a budget. See the article in this month’s newsletter for budgeting tools.
2. Pay off debt - Review and consolidate loans to help get them under control. Pay off your credit card debt, starting with the credit card with the highest interest rate. Be aware of “Pay Wave” as it is easy to spend and not think about it.
3. Review fees - It’s important to review your bank and bank products regularly or as your life circumstances change. Compare bank fees and ensure you have the best products for your situation.
4. Save for a rainy day - Saving is a proactive way to give you a sense of control and having an emergency or ‘rainy day’ fund can help alleviate financial stress knowing you have something in reserve. Start small, it all adds up. Set up an automatic debit so you don't have to think about it.
5. De-stress - Start with these steps, as this will give you a growing sense of control. Avoidance is a huge stressor. If you have taken the steps above, you are actively working to improve your situation and although it’s normal to feel worried or anxious when times are hard, know you are doing something. Take time to relax and de-stress. The link between stress and physical illness is well documented so it’s important to prioritise your health and seek help when needed.
Financial coaching can help you understand and manage money by teaching you financial skills that last a lifetime. Newport & Wildman’s financial coaches will assist you in creating a personalised action plan to manage your debt and provide practical information on your options and rights. Confidential guidance and support, is available, to expertly and respectfully guide you back to financial control.
- HR Metrics, Statistics and Trends White Paper, Subscribe HR White Paper 2018
- .https://www.abc.net.au/news/2018-07-04/1-in-6-credit-card-users-struggle-under-mountain-of-debt/9936826
