Eating better. Exercising more. So many of our plans at the beginning of a new year tie into our physical health, and for good reason. But let’s not overlook our financial wellness. With nearly a full year ahead of us, now is a great time to make a commitment to money matters — things like better budgeting, saving for retirement and planning for the future.
According to a recent FINRA Investor Education Foundation study, 60% of Americans feel anxious about their finances. I wanted to get a sense of this closer to home, so we conducted an informal survey of employees in Prudential’s Individual Life Insurance business. The survey results were not surprising: Just 25% said they were feeling confident about their finances heading into the new year, with 34% saying budgeting was the top thing to focus on to improve their finances in 2024 (see note about the survey below).
I often hear the question, “What does it mean to be financially well?” To me, it means you can comfortably pay bills, manage monthly expenses without worrying about where that money is coming from and have money set aside for emergencies. It can also mean you’re saving for retirement, you’re protecting your loved ones through life insurance and estate planning, and you regularly engage with a financial professional to ensure you have the right plans in place.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
No matter where you are in your financial wellness journey, the start of a new year is the time to make sure you have a financial plan that inspires confidence and provides peace of mind. Here are four tips to consider:
1. Take it one day at a time.
A key to achieving financial wellness is organizing and understanding your day-to-day finances, then creating a budget you’ll be able to follow. By tracking your spending, you can see where your money is coming from and going to, and it will be easier to take bigger steps, such as paying down debt or building an emergency fund.
2. Set financial goals.
Do you know how much you have saved for retirement and how long it will last? If not, have you thought about what your plan is and how you’ll get there? While retirement is just one example, other financial goals can include buying a house or saving for your child’s college tuition. Setting short- and long-term financial goals, and making progress toward them, can play a big role in achieving overall financial wellness.
3. Protect against risk.
Protecting yourself — and your loved ones — against serious financial disruptions and setbacks can help alleviate stress as you look to the future. From life insurance to health insurance to retirement savings, having the resources to navigate and manage financial challenges such as unforeseen illness or injury, or the premature death of a spouse, can be key to a financially secure life.
4. Connect with a financial professional.
You’ve got help at your fingertips. A financial professional can help support you with advice and strategies you may have not considered. They will help you map out a realistic financial plan that can be part of your blueprint for a happy and healthy future.
Note: 134 employees from Prudential’s Individual Life Insurance business responded to the optional employee survey conducted on Jan. 22, 2024.
Financial Wellness offerings, including access to any third-party referrals, are provided by Prudential Workplace Solutions Group Services, LLC (“PWSGS”). PWSGS is an affiliate of Prudential Financial, Inc. PWSGS is not a licensed insurance company, does not provide insurance products or services, and does not provide financial, investment or tax advice. Individuals should consult appropriate professionals when making financial, investment and tax decisions. The Financial Wellness offerings are made available for general financial education purposes. Access to financial wellness products, services, seminars and tools is not conditioned upon the purchase of insurance or retirement products or services from any Prudential company.
Financial Wellness offerings, including any products, services or other solutions described in this document, are voluntary, individually selected offerings. They are not part of any employee benefit plan, or any program sponsored or endorsed by an employer. 1077228-00001-00
RELATED CONTENT
- Life Insurance Really Can Be Affordable and Uncomplicated
- The Biggest Financial Barriers Facing Black Americans … and Strategies to Tackle Them
- Five Tips to Boost Your Financial Wellness This Winter
- How to Build Your Financial House From the Foundation Up
- Should You Take Financial Planning Advice From AI?
-
8 Rules for Choosing the Right Financial AdviserNot all advisers are created equal. Here's how to find one qualified to manage your wealth and protect your legacy. From verifying credentials to trusting your gut, follow these rules to find a financial adviser.
-
A Hated TSA Rule Was Finally Phased OutAfter nearly 20 years, the TSA is ending its shoes-off policy. Travelers will still need a Real ID, and advanced screening remains in place. Here’s what to expect on your next flight.
-
Financial Fact vs Fiction: Why Your 'Magic Number' Isn't Actually MagicalDo you think you're diversified if you're invested in the S&P 500 and Nasdaq? Do you think your tax rate will fall in retirement? Think again — and read on for other myths that could be leading you astray.
-
Opportunity Zones: An Expert Guide to the Changes in the One Big Beautiful BillThe law makes opportunity zones permanent, creates enhanced tax benefits for rural investments and opens up new strategies for investors to combine community development with significant tax advantages.
-
Five Ways Retirees Can Keep Perspective Through Market JittersMarket volatility is a recurring event with historical precedents (the dot-com bubble, global financial crisis and pandemic), each followed by recovery. Here's how people who are near or in retirement can navigate economic uncertainty.
-
I'm a Financial Strategist: This Is the Investment Trap That Keeps Smart Investors on the SidelinesForget FOMO. FOGI — Fear of Getting In — is the feeling you need to learn how to manage so you don't miss out on future investment gains.
-
Can You Be a Good Parent to an Only Child When You're Also a Business Owner?Author and social psychologist Susan Newman offers advice to business-owner parents on how to raise a well-adjusted single child by avoiding overcompensation and encouraging chores.
-
How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)Financial advisers need to be strategic when they communicate with clients during market volatility. The goal is to not only reassure them but to also help them avoid rash decisions, deepen your relationship with them and build lasting trust.
-
The Hidden Costs of Caregiving: Crisis Goes Well Beyond Financial IssuesMany caregivers are drained emotionally as well as financially, leading to depression, burnout and depleted retirement prospects. What's to be done?
-
Cash Balance Plans: An Expert Guide to the High Earner's Secret Weapon for RetirementCash balance plans offer business owners and high-income professionals a powerful way to significantly boost retirement savings and reduce taxes.
