You may be familiar with AFSPA primarily for our health plan, the Foreign Service Benefit Plan. However, we also provide a wide range of services that go beyond health insurance. This month, we would like to draw your attention to one of the services that we offer exclusively to our AFSPA members.
In honor of Financial Awareness Day on August 14th, we would like to highlight our Financial Wellness Program. This program emphasizes the importance of building a stable financial future from the present day throughout your retirement years. With financial awareness, you can take charge of your finances and achieve financial success.
Understanding Financial Awareness
Not everyone has the privilege or knowledge of financial literacy. Understanding exactly how to save or invest money can be hard if you don’t have someone guiding you with knowledge of finances. Things like setting up a bank account, applying for financial aid, or building credit can seem foreign to someone who does not know how to manage their money.
To be financially aware, you’re creating a strategy that lets you make, spend, save, and invest money to help you become successful. By being financially aware, you can reach financial stability. Financial stability means you have enough means to live your life comfortably. You have enough money to still be okay if unexpected events like a visit to the emergency room or if you lose your job. Here are a few examples of financial awareness:
- Having a monthly budget for expenses and wants
- Saving a certain amount of money each month
- Investing money in stocks, bonds, etc.
- Knowing your spending habits
- Paying off debts
- Investing in a long-term plan for your future
Increasing Your Financial Stability
Once you have a budget created for your monthly expenses like rent, insurance, utilities, you can begin to sort your money into savings, emergency funds, and more.
One of the best ways to reach stability is by saving money. Find places where you can save money by cutting out things like takeout, or shopping at a cheaper grocery store, or using coupons. Experts recommend saving 20% of your income each month, but that is not a reasonable request when you are just starting out saving. Any amount of money that you can put towards savings is a good idea. Whether it is $50 or $500, every dollar is a step towards financial stability.
Once you have started saving money, you can find ways to start paying off debts. Paying off your debts and improving your credit score can increase your chances of stability by a lot. Credit score makes a difference when applying for apartments, buying a house, and even opening credit cards. If the thought of paying off your debts sounds overwhelming, there are a bunch of different approaches to paying off debts. Read about different methods here.
How AFSPA Can Help
As an AFSPA member, you have access to a Financial Wellness Program. If you’re unsure of where you stand financially, try taking the Financial Wellness Assessment. Through this program, you will find a plethora of information on retirement planning, managing debt, saving and investing, family finances, and preparing and protecting your finances.
If you require further assistance, we provide monthly Financial Wellness Checkups between 9 am ET and 4 PM ET. During these sessions, you can meet with a Prudential Pathways Financial Professional and discuss your financial situation for up to 30 minutes. To register for this service, please visit afspa.org/events.
