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?
-
2025 IRS Free File Is Now Open: Are Your Taxes Eligible?Tax Filing Official tax season may not begin until late January, but taxpayers can start filing online returns today.
-
Need More Money for Retirement? You May Have Already Saved It.Over 29 million lost 401(k) accounts worth almost $1.65 trillion have been forgotten by their owners. Here are eight ways you can locate your account.
-
The Wrong Money Question to Ask After Trump's ElectionIf you're wondering what moves to make with a new president moving into the White House, you're being dangerously shortsighted. Here's what to do instead.
-
An Investing Plan for This Year: Doing Less Can Lead to MoreAchieve more when investing in 2025 by planning to work smarter, not harder. These three strategies can help put you on the right track and keep you there.
-
All About Six Types of Auto Insurance CoverageDo you know what your auto insurance policy covers? Here's a primer on some coverage categories, along with examples of how each type of coverage works.
-
Social Security and Medicare Funding: Is the Sky Falling?Social Security and Medicare are slowly running out of money, but what does that mean for the retirees counting on them? Actually, it's not all bad news.
-
What We Need to Do to Protect Retirees' Financial SecurityCognitive decline and aging in general put older retirees at risk of losing their financial security when they're the most vulnerable. What can be done?
-
Financial Planning: Sisters Should Be Doin' It for ThemselvesMore and more women are ringin' on their own financial bells (with apologies to Aretha Franklin and Eurythmics) — but that demands a robust financial plan.
-
Is Money Messing Up Your Family's Life?Parents who discuss money and attitudes toward money with their children are more likely to raise financially successful and responsible adults.
-
Do You Know the Power of Whole Life Insurance in Retirement?Worried about legacy planning, market volatility or where to get cash to cover surprise medical or home repair bills? This little-known tool could help.
