Good habits rhyme with good health
Let’s begin with the good news: Americans who describe themselves as “financially healthy” say they have solid financial practices. They “keep track of their income and spending” (96%), “spend within their means” (98%), and “have an emergency fund” (93%).
People who are “in bad financial health,” on the other hand, are less likely to have these positive practices. They are also more likely to be in debt (82%), with credit cards (51%), lines of credit (31%), and school loans accounting for most of this burden (17%).
Paying off debts is the main priority
Even though the rising personal debt is a perennial source of concern for Canadian economists, the impact on the workplace is a little unclear. According to our research, debt can be a cause of worry for employees, distracting them from their work and lowering their productivity.
While all Canadians with debt admit to feeling stressed, individuals with “poor” Index ratings are most likely to state, “I’m anxious about my financial condition.” “Money matters are a cause of worry for me” (88%) and “Money matters are a source of tension for me” (81%). Furthermore, nearly half (49%) feel that “financial issues keep me from doing my job.”
On the other hand, our data reveal a significant bright spot: debt repayment is the top financial goal for all Canadians. According to our Index, this goal is much more critical for individuals with a “poor” score. Recognizing the issue and exhibiting a desire to find answers is already half the battle.
Budgeting and advice are essential
What can employers do to assist employees in dealing with debt and financial stress? The two most important solutions are obtaining solid financial counsel and creating a budget. Indeed, our research found a strong link between using a financial advisor’s services and economic well-being. Although 42% of Canadians have a financial advisor, those who are “in good financial health” (64%) are nearly three times as likely to have one as those who are “in poor financial health” (22%).
Employers can assist their employees by helping, such as tools and recommendations for creating an online budget. On the other hand, a financial advisor is in a better position to assess a person’s financial state and set goals, milestones, and a monthly budget for that individual to help them improve their financial situation. A good debt management strategy can help people focus on their careers while reducing financial stress.
Stop Your Credit Card Spending
Remove your credit cards from your wallet if overspending unnecessarily leads you to add to your bills. This method is straightforward, but it might help you avoid overspending and focus on getting your finances under control.
Sell Unwanted Gifts and Household Items
Selling unneeded goods from your home can help you earn some additional cash. With businesses like Poshmark and RealReal specializing in consignment clothing and sites like Facebook and Craigslist, where almost anything can be purchased and sold, this is easier than ever. Use all the proceeds from your sales to pay off your obligations.
Increase Your Income with a Side Hustle
Jobs like pet sitting, tutoring, and working as a virtual assistant are simple, to begin with, and can help you pay off your bills. Increase your income by taking on a second job or a freelance project, then utilize the extra money to pay down your debts rapidly. You can dig faster with a giant shovel.
Take Advantage of Balance Transfers
A balance transfer lets you move your debt from one account to another, thereby saving money on interest rates. Depending on the card used and other choices available, some people may not be able to apply for a new credit card and go through this process.
If you know, you’ll be able to pay off the sum in a short period, and this technique is ideal.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.