Financial wellbeing refers to a state of being where an individual or organisation has enough financial resources to meet their current and future needs, and is able to effectively manage those resources to maintain that state.
This could include having control over one's finances, being able to handle unexpected expenses (for example, an increased mortgage rate), being able to save for the future, and, importantly, having a sense of financial security.
Whether you are an individual, a small business owner, or the CEO of a billion-dollar multinational company, ensuring that you have a sense of financial wellbeing is extremely important. Not only can it can lower your stress levels (and so help increase productivity) but it helps you set, work towards, and achieve long-term goals.
Here are some of our top tips to establish (or maintain) you financial wellbeing:
Keep track of your expenses and income – keeping an accurate record of what and where you spend money, and how much you earn and from where is the best way to identify places where you can cut back… or opportunities to exploit.
Ensure you understand your tax responsibilities and are up to date with any changes.
Consider seeking professional financial advice – you can’t always do everything yourself and a qualified professional will be able to support you and give you peace of mind.
Plan for the future – whatever your goals are (worldwide scaling of your business or a nice retirement in Spain) planning for them early will help you achieve them. A growing business will require increased costs as you take on staff, expand your office space or increase your marketing spend. All of this must be financed and having a plan in place will help you feel secure in your gaols. You could use the MOSCOW prioritisation tool to plan what you should do.
Build up an emergency fund – you can’t predict another pandemic lockdown or burst pipe in the toilet so ensuring that you have an emergency fund to cover you when the unexpected happens can be a relief. You might want to consider reviewing your business model to make sure that it is resilient and can withstand the unexpected.
To find out more about business model innovation, contact us.