Tag: Financial Health

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Financial Wellness

The Emergency Fund: Help Your Team Build Theirs Even During A Pandemic

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When the COVID-19 pandemic struck in 2020, many employees learned the hard way how important having an emergency fund was. Having money tucked away in case of job loss, reduced income, or other large and unexpected expenses can help ease stress and create a financial buffer to keep one afloat during times of need without having to rely on credit cards or taking out a loan (both of which they might have difficulty paying off in the end).

“An emergency fund is a form of savings account. You keep it in the bank and only spend it on dire situations,” advises financial consultant Nicole Suarez. “Only when you have met your target amount can you explore putting the excess in investments.”

If your team is experiencing financial stress or need help building better budgeting habits, partner with MindNation to avail of 24/7 teletherapy sessions with WellBeing Coaches who can help ease their anxieties. Visit www.mindnation.com or email [email protected] now.

How much is needed?
“The general rule would be to set aside three to six months’ worth of living expenses,” Nicole suggests. But even then, she says that it also depends on one’s personal and financial circumstances. “Is the person a breadwinner? A parent? Or are they single and living with parents who provide for all their needs?” she enumerates. All these factors should be considered when computing how much money to set aside. For example, employees who are breadwinners will need to save even more, while those who are single can put small amounts into the emergency fund and just increase it over time. “The important thing is to build the habit,” she adds. 

How to build the fund during the pandemic

Replenishing an emergency fund on a reduced salary can be hard but it’s not impossible. Here are some suggestions you can offer your team members so that they can find extra money to set aside:

  1. Just start with what they can. Employees who are living paycheck to paycheck should not be expected to set aside an entire month’s salary right off the bat; it’s unrealistic and will set them up to fail. “Suggest that they set aside whatever they are comfortable with,” Nicole stresses. “When it comes to saving money, any amount will help.”
  2. Turn clutter into cash. “Look for things at home that they no longer need but can sell,” Nicole advises. These include pre-loved clothes, toys, and other household items. “Of course, they won’t be able to price them as high as they would want, but assure them that a small amount is better than nothing.”

“When it comes to saving money, any amount will help.”

Nicole Suarez, Financial consultant
  1. Cut down on expenses. “Remind them to be mindful of how much takeout they order in a month and to resist impulse buying during payday sales,” Nicole says. “Ask them to review their monthly subscriptions, like meal services or streaming services — is it possible to downgrade the subscription or cancel it entirely?”
  1. Look for other sources of income. “If your employee is particularly skilled at something, encourage them to turn it into a side business,” she suggests. This article by Forbes lists the reasons you should let your team moonlight: it will boost their financial health, give them an outlet for pursuing their passion, improve their creativity, and make them happier overall — all characteristics of a good employee.
    But to make sure that their side hustle does not interfere with their work in the company, clearly communicate your rules and boundaries during you regular one-on-one sessions; having an honest and open conversation will benefit you both. 
  2. Don’t go into debt. “An emergency fund is something that is built over time; because there is no pressure to come up with the money right away, it does not make sense to borrow money to fill it,” Nicole explains. 

During these uncertain times, an emergency fund can go a long way to boosting your team’s financial and mental health.

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Financial Wellness

The Financial Accountability Partner: Your Buddy For Better Financial Health

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An accountability partner is a person who helps another person keep a commitment. You can have an accountability partner for the different areas of your life — someone who will hold you to your work deadlines, another person to remind you to do your exercises for the day, or even a loved one to remind you to set your boundaries or to unplug at the end of the work day. And if you are struggling in some areas of your financial life, having a financial accountability partner can be a big help. Specifically, they can:

  1. Help you set financial goals
  2. Brainstorm the steps you need to take in order to achieve those goals
  3. Make sure you stay on track

How to find the right financial accountability partner

“A financial accountability partner does not have to be a financial adviser or financial planner, it’s just a bonus if they are,” assures Enery Franklin Dy, a licensed financial adviser and founder of Financial Literacy PH, an online community that aims to spread financial literacy and where anyone can talk freely about savings, budgeting, insurance, and investments. “Friends, family members, or even team members can be good accountability partners if they are enthusiastic about money and investments and practice good money habits.” If your organization partners with MindNation, MindNation WellBeing Coaches are also available to help team members build better financial habits or have a better relationship with money.

Friends, family members, or even team members can be good accountability partners if they are enthusiastic about money and investments and practice good money habits

Enery Franklin Dy, Financial Adviser

That being sad, it’s also important that the person you choose to be your financial accountability partner posses the following traits:

  • Trustworthiness. “Money is a sensitive issue, and some matters like salaries should be kept confidential,” Enery reminds.
  • Honesty. “They should be able to give you constructive criticism and push you to achieve your goals,” he adds.
  • Diligent with record-keeping. This is important if you need help budgeting, although Enery admits this is not a deal-breaker since there are already many apps available to help you track your money’s movements. 

At the end of the day, what’s more important is you find someone who has the same financial goals as you, or who has faced similar financial struggles as you but emerged successful. 

  And if you absolutely cannot find anyone who fits the above bill, communities like Financial Literacy PH and other personal finance groups are available to anyone interested. 

How to work with an accountability partner
Enery says there are no set rules on how often or how long you should meet; it can be daily or weekly, as long as it is done regularly and there is ample time to go over progress and answer any questions that you may have. And even if you don’t have a goal due for completion, it’s still advisable to check-in on your partner so that you monitor your progress and build the habit. 

And speaking of building habits — remember that just like with eating healthy or setting boundaries, doing the work is your responsibility. At the end of the day, your success will depend on the efforts you exerted. The financial accountability partner’s job is to simply listen to your progress and provide helpful suggestions if they can. 


The MindNation CareNow Plan© includes teletherapy sessions with WellBeing Coaches (available 24/7) to help team members build better habits or advance in their careers. Email [email protected] to learn more about what WellBeing Coaches can do for your organization.

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Financial Wellness

Money Talks: 5 Ways To Normalize The Conversation About Financial Matters With Your Employees

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In a previous post, we discussed how financial stress can affect an employee’s mental health and productivity at work. As a leader, one of the ways you can help your team members maintain good financial footing and achieve better well-being is to normalize talking about financial health. 

But because financial problems are extremely personal matters, they must be addressed carefully. According to a report by Canadian multinational insurance company and financial services provider Manulife, feelings of shame and embarrassment make it difficult for people to reveal money issues.

To remove the stigma facing financial conversations, Mariel Bitanga of Simply Finance, a boutique financial planning firm committed to empowering Filipino women, shares some ways you can approach the topic with your team members without seeming too intrusive or judgmental.

  1. Make sure you are giving your employees the right wages and government benefits. “The first step to ensuring that your employees have good financial health is making sure they receive what is rightfully due to them,” Mariel reminds.
  2. Regularly hold company-wide activities that actively promote or raise awareness about financial well-being. “If you are holding mental health awareness activities, why not have a Financial Awareness Week or even a Financial Health Month?” Mariel asks. “If your Human Resources Department is not equipped to facilitate finance-related activities, you can opt to invite experts to come and give talks about personal finance or smart investments.” Sessions like these usually lead participants to comfortably discuss their learnings with their peers afterwards and break the stigma about financial health. MindNation conducts virtual trainings to help employees take charge of their personal finances and make smart money decisions. Sessions are facilitated by licensed financial planners and financial health advocates. To book this talk for your organization, email [email protected].
     
  3. Include the topic in performance reviews or regular one-on-ones. Just like how you should frequently check-in on your team member’s physical and mental health, it’s important to do a financial health check as well. “Push through the embarrassment and have a frank talk about wages and expected bonuses or salary increases. Knowing this information can even incentivize employees to perform better at work,” Mariel points out.

Just like how you should frequently check-in on your team member’s physical and mental health, it’s important to do a financial health check as well.

Mariel Bitanga of Simply Finance


4. Have an open-door policy. “Make your employees feel that they can come to you anytime if they need advice or discuss anything related to money struggles,” shares Mariel. “This way they feel safe instead of being scared to bring up concerns about their salary or benefits.”

5. And when concerns do arise, be honest and transparent. In case an employee asks for something more than you can give, i.e. a salary increase or a promotion, Mariel advises that you stick to the facts and not let emotions get in the way. Instead of saying something like ‘We’re all affected by this pandemic, don’t ask for a raise,’ present to them the company rules or policies involving raises and promotions. “Has the employee done something to merit a salary increase?” Mariel says. “Make it transparent so that expectations are clear and you do not give false hope.”  

Now, if the said employee comes back to you with a list of all their achievements but the company is really in a tight financial spot, be honest. “Apologize, explain the situation, and graciously tell the employee that you will not take it against them if they decide to look for opportunities elsewhere,” Mariel suggests. This way, there are no hard feelings on both sides.

By normalizing the conversation about financial health, you encourage your employees to talk more openly about their financial needs, share ideas and best practices, and make them more compelled to work on their financial wellbeing. Download our free Achieving Financial Wellbeing toolkit https://bit.ly/MN_financialtoolkit to learn how else you can help your employees increase their financial health, meet their short-term and long-term financial goals, and balance today’s challenges with tomorrow’s needs.