Financial stress of employees costs the U.S. $250 billion in lost time. According to a recent Mercer financial wellness survey, 62% of the employees surveyed were worried about just keeping up with monthly expenses. So what choices do you and your employees have to combat financial stress?
Here are five tips to engage employees differently with his or her finances. Please realize employees need to make different choices to change their financial reality. All the education in the world will not create the change. Taking action creates the change.
What Does It Cost to Live Each Month?
Does your employee know exactly how much it costs for his or her household to live each month? It needs to be exact. What I see with many people under financial stress, is they really do not know all of their monthly expenses. Have your employees make a list of all their monthly expenses, rent/mortgage, utilities, student loans, car, kids, food, and etc. The target of this exercise is to get clear on what they see as their monthly expenses and to promote a greater awareness of their financial reality.
Once they have the layout of their current financial reality, changes can start to be made. And again, the point of this isn’t to stress them out more, or make them wrong, but to gain awareness of where all of their money is going.
Taking Responsibility for Your Spending—Tracking Daily Spending for a Month
Similar to the first tip, however, I have noticed what people think it costs them to live each month and what they truly spend is very different. Ask your employee to keep track of all their expenses, have them write down every single cent they spend in the month, not just what they put on credit cards, but what is paid with cash.
What Can I Change Here?
Once they have the list of expenses, have them look at the list and ask, “what can I change here?” Is there anything that they can change? Sometimes costs are fixed and sometimes the only thing that is fixed is the person’s perspective. Asking questions can start to unfix your employee’s perspective and creates the space for something different to show up.
For example: What can you change here? Is this something you truly require? Is there another way to get it for little or no money? What else is possible with your finances/budget that you haven’t considered? What would it take for you to get this with or without money?
Do Something Fun
When under financial stress and looking to reduce spending, the first cut is of the “nonessential” things, but many times those are things that promote a sense of being and reduce stress. Recommend they start taking time to do something they enjoy. So, what is fun for your employee? What can they do that gives them a sense of peace and well-being?
Talk with your employee about taking 10% of everything he or she makes and setting it aside.
They can put in another account, put cash in a piggy bank—whatever they like—just as long as they don’t spend it ever. It is really a simple tool for changing one’s financial reality. So, for all the money that comes into your employees’ lives, tell them to take 10% of it and put it in another account. And if their financial situation is really difficult, have them start with 5%. The target of the 10% is to start creating an awareness of having money, rather than just spending it. Just imagine if you had been taking 10% of every paycheck you ever got since you started working. How much money would that be?
Setting aside that 10% is such an important tool to start building lasting wealth. If you would like more information about this, check out the Richest Man in Babylon by George Samuel Clason.
|Andrew Gardella is chiropractor who has worked as an Access Consciousness facilitator since 2011. He graduated from school Magna Cum Lade with BAs in Biology, Psychology, Cognitive Science and then received a Doctor of Chiropractic from Palmer College of Chiropractic. Along with various chiropractic techniques, Dr Andrew also studied BodyTalk and is a certified practitioner. Since he was young, he has bought items from flea markets and sold them to generate more income, and this has evolved into buying and selling antiques alongside his Access Consciousness work. He realized some years ago that whether you have money or not is a choice, and since discovering this, has never looked back financially. He is now a certified Right Riches for You facilitator, a specialty program of Access Consciousness. He loves teaching others how they can make the choice to be in a better financial situation too. www.andrewgardella.com.