An issue that I consider to be of great importance in our lives, and that often goes unnoticed, is financial health. In this fast-changing world, it’s key to take strong action to ensure we have a healthy financial future. Most people believe that they are in a good financial situation. whatWill this be true based on the reality we live in today??
We are situated in an era in which life expectancy has increased considerably. Our society has become more long-lived, and this forces us to worry more about our future, especially for our retirement. While it is true that in the past we could rely on the pension system as an economic lifeline for our old age, now we are faced with a different reality; pension systems depend on us.
According to the latest 2023 Financial Well-being report, published by Aon, Invested, Vanguard and Amedirh, in our country, retirement tops the list of top economic concerns, as 76 percent of respondents do not know at what age they want to retire and only 29 percent are clear about how much they are saving for their future.
In addition, we have to deal with another challenge: inflation. Over the years, this economic compound can significantly erode the purchasing value of our money. This means that what seems sufficient today to secure our retirement may not be so in the future.. Pensions could be negatively affected by the impact of rising priceswhich would wreak havoc on the financial stability of the elderly.
Given this scenario, it is very important that we begin to take concrete measures to guarantee our financial health in the long term. We need to be proactive and take responsibility for our own economic future. Therefore, we must make informed decisions and carefully plan our finances.
In addition to this, it is crucial to have a solid financial education that allows us to understand key concepts such as saving, investment and diversification. In this sense, companies can play an important role by providing healthy finance programs and promoting financial education among their employees.
As leaders, it is critical that we help our employees shape their financial well-being and take concrete steps to secure our economic future. Next, I want to share some recommendations:
1. Spend brief but consistent time thinking about our finances
Often, we get carried away by the daily routine and relegate them to the background. However, it is important that we set aside regular time to assess our financial situation, review expenses, discuss goals, and make necessary adjustments. Even a few minutes each week can make a difference in the long run.
2. Recognize the importance of making a financial plan for life
Just like we plan our personal or professional goals, we must also have a comprehensive financial plan. This plan should contemplate our goals in the short, medium and long term., such as the education of our children, the purchase of a home or retirement. Setting clear goals will help us make better decisions and stay focused on our priorities.
3. Stop being product buyers
Instead of simply buying financial products without thorough analysis, we need to take a more strategic approach. It is essential that we understand the different financial products and services available, their advantages and disadvantages., and how they align with our goals. Consulting with subject matter experts and seeking appropriate advice will enable us to make informed decisions and maximize the return on our investments.
4. Time is an invaluable resource that we often underestimate
Avoid spending money on activities that do not add lasting value; spend time learning new skills, developing personally and professionally, cultivating meaningful relationships, and exploring your passions.
Don’t bear all the expenses, consider sharing the costs with friends, family or housemates. It is always a good option to split the cost of a meal, a trip, or even monthly housing expenses. This will not only ease your financial burden, but it will also foster collaboration and strengthen ties with the people around you.
The key to achieving solid financial wellness lies in putting these steps into practice. It is not enough to have knowledge or plans; we must implement the necessary actions to achieve our objectives. This involves following a budgetsaving consistently, investing our time wisely, dividing expenses, and adjusting our strategies as needed.
By adopting these recommendations, we will be taking significant steps toward better financial health in the years to come. The road to economic stability is not always easy, but with focus, dedication and a solid strategy, we can ensure a prosperous future.
Editor’s Note: This text belongs to our Opinion section and reflects only the author’s vision, not necessarily the High Level point of view.
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Moses Perez Penaloza Aon Retirement and Financial Wellness Leader for Latin America. Expert in retirement, savings, personal finance and human capital.