Invest in your financial wellness
Table of Contents
Financial wellness looks different for everyone. In general, it refers to being in a stable, healthy, day-to-day financial situation where you can effectively manage your money, set and achieve financial goals, and cope with financial stress.
It’s not just about having money — it’s also about understanding your whole financial picture and managing it responsibly. That picture might even include “good” debt, like mortgages and student loans. How much debt you can comfortably carry will likely depend on your personal risk tolerance, but it’s important to keep debt in mind when considering your overall financial outlook.
Luckily, whether you’ve been saving since preschool or don’t even know what IRA stands for, it’s never too late to start planning for your financial future. Here are a few benefits you might have that can help you get started and keep your momentum.
What are tax-advantaged accounts?
HSAs, FSAs 401(k)s — all of these fall under the umbrella of tax-advantaged accounts. But ALEX, you might ask, what does tax-advantaged even mean? That’s a great question!
There are three main ways an account can be tax-advantaged:
Tax-exempt: Your contributions, gains, and withdrawals aren’t subject to any taxes.
Tax-deferred: Taxes on contributions, earnings, and gains are postponed until a later date.
Tax-deductible: You’ll get a deduction on your taxable income when you put money into this account.
Putting even small amounts of money into a tax-advantaged account every month can help you passively grow your income — in other words, boost your earnings without actively engaging in extra work. In fact, increasing your contribution by just 1% can make a big difference in your account’s growth.
And don’t forget to factor in the interest you’ll accumulate and any financial matches that your employer may offer on qualifying accounts.
Types of tax-advantaged accounts
Your employer may offer certain types of tax-advantaged accounts, and you might find other options available through banks or financial institutions.
Depending on your work sector, you might have access to some of these accounts but not others. Additionally, the money in some tax-advantaged accounts rolls over year after year, while others expire after a certain amount of time. How much you plan to spend and how much you plan to save will influence which accounts you choose.
To learn more about these different kinds of accounts and how to make the most of them, check out our page on the power of tax-advantaged accounts.
Explore your retirement account options
Retirement looks different for everyone, so there’s no one-size-fits-all solution. Luckily, many employers offer a wide range of retirement accounts that can help you save up before you clock out.
The most common retirement accounts are 401(k)s, 403(b)s, and IRAs, and each comes with its own pros and cons. You can get to know more about these options and some of their benefits by heading over to our page all about retirement and financial wellness.
How an EAP can help with financial wellness
Employee Assistance Programs are employer-sponsored programs designed to support the mental, emotional, and physical health of employees like you. Depending on what your employer offers, these programs might help you with financial counseling, debt management, budgeting and saving strategies, retirement planning, and more.
Aside from financial resources, EAPs also typically offer other valuable services for free or at a discounted rate. You may be able to save on services like:
Mental health support, like free or discounted therapy.
Family assistance, like childcare support and adoption aid.
Professional development, like lifelong learning stipends and career coaching.
Wellbeing programs, like substance abuse recovery or support groups.
Any help you receive through an EAP is confidential, and you can lean on them for work-related and non-work-related issues. Most employers offer EAPs, but you can check with your HR department to get more details.
More money-saving benefits
The ways to save don’t stop there. Sometimes, it can be as simple as finding a provider that’s in your network. Other times, it’s savvy prescription spending habits. And then there’s preventive care — keeping up on your annual appointments and checks can help you catch any health issues before they become more serious.
Check out six ways your benefits may be able to help you save more on medical care.
Your physical and mental health aren’t the only factors in your overall wellness — your finances also play a major role. With the help of your benefits, you can make sure your financial wellness is just as cared for as your health.
ALEX
Combining physical and financial wellness is much easier when using gold bars.