Improving Your Financial Wellness

The phrase “financial wellness” sounds a bit cliché, but it's an extremely important concept that can affect both your mental and physical health. Financial wellness refers to your ability to live without financial stress and be in complete control of your money. This ultimately means your debts are manageable, you have ample emergency savings, and you have a financial plan for the future.

Being financially “well” is typically not something that comes easy or by chance. It requires action, dedication, and minor adjustments over time in order to modify your habits for the better. It involves efficiently managing your money so you can pay your bills, save for the future, and enjoy life to the fullest. Attaining a healthy financial lifestyle requires you to work on four areas: budgeting, debt management, emergency savings, and retirement planning.


26%

of state employees budget
their money.

39%

of state employees do NOT have
an emergency savings fund.

52%

of state employees have
credit card debt.

2020 Retirement and Savings Survey - Retirement Readiness Edition

Budgeting

Budgeting is about telling your money where to go and what to do instead of wondering where it went. A budget doesn’t have to be complicated. You can find a simple budgeting worksheet here or download an app, such as PocketGuard or MINT, to your phone or tablet to get started.

Budgeting Resources


Debt

Having debt isn't always a bad thing, and it doesn't always hinder your financial wellness. Problems arise when you let debt get out of control. If you have debt troubles, you may want to consider different payoff strategies — like the snowball or avalanche method — or even paying a fee for a debt management plan to negotiate lower interest rates and new monthly payments on your behalf.

Debt Management Resources


Emergency Savings Fund

An emergency savings fund is a pot of money — typically at least three months of income — set aside to cover your monthly expenses in case of job loss or unexpected expenses like a new car transmission or home heating/cooling system. Starting your emergency fund can be tackled one step at a time. Simply open a savings account and begin stashing away a little amount every pay period.

Emergency Savings Resources


Retirement Planning

What the majority of people don’t realize, is that retirement planning should start in your 20s and 30s and continue throughout your working career. Whether you’re just starting out or are a seasoned state employee, the MO Deferred Comp Plan can help you create a retirement savings plan that fits into your budget and helps you attain the retirement lifestyle you’ve already dreamed of.

Retirement Planning Resources

Attend a Pocket Change presentation to learn more about saving and spending your money and for a short summary of your state benefits. After attending, you’ll have a better understanding of your current and future financial situation and ways you can improve your overall financial wellness. Register for an upcoming Pocket Change webinar or visit the Pocket Change website.