January is National Financial Wellness Month!

Sometimes I wonder who actually dubbed January as Financial Wellness Month. It seems like every day or month has been labeled by someone to promote something for their own interest. I like Financial Wellness Month though – because it seems like there are no losers here.

If you are reading this you fall into one of two categories:

1.      You’re an HR or Finance professional who may be looking for solutions to help the employees of your company.

2.      You’re an individual who is looking is looking out for number one (YOU!). Actually, everyone should also fall into category two.

So here’s a little something for everyone.

LOOKING OUT FOR ME: According to a 2013 Gallup poll, only one in three Americans prepare a budget, or as I like to call it, a spending plan. I don’t care what your level of income is, budgeting can help everyone. I find that most folks get themselves into a pinch or need to start compromising some of their financial goals if they are overspending in two key categories – Household & Transportation. Pete the Planner has a great “Ideal budget” tool that will help you to identify areas for improvement.

Now before, you go taking Pete’s advice, you might ask, “Who is Pete the Planner?” Pete is a nationally known personal finance author and columnist, whom I find to be funny, entertaining and most importantly, full of great personal finance ideas.

He suggests that you allocate approximately 25% of your household take home pay to your household (think rent or mortgage payment, taxes if you own, home or renter’s insurance). A separate 10% for utilities and phone is suggested.

As for the Transportation category, Pete recommends spending approximately 15% on any car payment, insurance, gas and repairs.

You may choose (or more accurately, have already chosen) to spend more in these categories, but it will likely crunch some of your other goals or spending habits. It’s up to you to find the appropriate balance based on your priorities and lifestyle.

Download Pete The Planner’s one page “Ideal Budget” tool here.

HERE TO HELP OTHERS TOO: According to the Consumer Financial Protection Bureau, 71% of Americans cite finances as a key source of stress. According to a survey by PricewaterhouseCoopers, 29% of respondents said personal financial issues have been a distraction at work and 48% said they've handled their personal finances during work hours. These lost hours add up to a significant impact on the bottom line. So what can we do to help employees?

There is a continuum of solutions available – from tools available from your retirement plan recordkeeper to in-person live meetings to online learning portals. Each serve a different purpose and population, so an integrated approach may be best for your employee population. If you’re interested in exploring which solutions are most appropriate for your company’s demographics, please contact me.

Pete the Planner is not affiliated or associated in any way with our Broker/Dealer Kestra Investment Services, LLC or its affiliates nor Strategic Retirement Partners (SRP).