Looking for a Payday Loan Alternative? Here Are Some of the Best Options

If you’re struggling to make ends meet and thinking of borrowing cash, you’re far from alone. According to recent research, the average American has over $90,000 in debt, from student loans to mortgages to credit card debt.

Of course, while debt is a normal fact of life in the U.S., it’s worth noting that some lending options are better than others. Avoiding the predatory terms of payday loans, for example, is always a safe bet! If you’re ready to get started, here are some payday loan alternatives to keep in mind.

Borrow From Family or Friends

Hoping to avoid hefty fees, high interest rates, and the application process? Some of the best alternatives to payday loans are friend and family loans. Note, of course, that this option isn’t without risk: if you can’t repay the loan, you may put your relationship under strain.

Ask Your Lender for a Payment Plan

If you’re already in a financial bind, ask your provider if they’d be willing to offer a payment plan. Under this plan, you’ll have smaller payments each month, though you may have to pay additional fees and interest.

Boost Your Income

Whether you create another income stream, find a higher-paying job, or ask for a promotion, boosting your income can be a more valuable long-term alternative to payday loans. There are plenty of options available to you, though many of them will involve time and effort up front.

Consider Other Loan Options

If you’re set on taking out a loan, don’t forget that there are many ways to avoid high payday loan fees. Here are a few options to consider:

“Bad Credit” Personal Loans

If bad credit is keeping you from applying for a loan, check into bad credit loans. People with scores as low as 580 can prequalify with multiple lenders to compare interest rates and terms before applying. If your credit score is under 580, getting a co-signer to take out the loan with you may make your lender more likely to grant you one of these loans as well.

Pawn Loans or Car Title Loans

Both of these loans can be easy to get, though for title loans you’ll need to own your car or have equity in it. You’ll also need to be sure about putting your item up for collateral: if you can’t repay the loan, you could lose it! Still, options like this service can be a great way to manage debt or cope with an emergency in a pinch.

Peer-to-Peer Loans

As the name suggests, peer-to-peer loans match individual borrowers with investors. There are many online platforms to choose from, each with their own rates and terms. Some platforms will even work with borrowers who have less-than-perfect credit.

Try These Payday Loan Alternatives

Whether you boost your income or seek out another lending option, it’s a good idea to consider these payday loan alternatives before you subject yourself to predatory interest rates and fees. Work with the lenders in your area or reach out to lenders on online platforms to find the best terms for your needs!

Want more of the financial tips and tricks you need to know? Be sure to take a look at our other content for additional guidance.

What Gives Your Company a Good Chance to Make it?

 

Having a company that you can call a success for many years is something you may well have dreamed of.

With that thought in mind, what actions will it take on your end to improve the odds your company makes a go of it?

Remember, the last thing you want or need is to be a failed small business at the end of the day? 

Make the Right Choices from Day One

In doing all you can to enhance your chances for success, start by looking at how you structure the business?

You want to get out of the gates on the right foot. Part of that means you have a structure in place. This is one that can provide your company with benefits and not obstacles.

One option to look at would be starting an LLC in Delaware.

Should you choose to do so, know that you could put your company in position to have advantages other do not.

This can include things such as a better legal setting should your business need to go to court. You could also see a reduction in your tax expenses. This would be given the First State has friendlier tax codes for many businesses. Those are but two of the advantages setting up an LLC there are worth your time and effort looking into.

When it comes to best positioning your company to make a long go of it, you also want to look at how you handle finances.

Yes, being smart with money goes a long way in determining what kind of run you will have as a business owner.

If you are careful with money, odds are you will be in a better financial spot to withstand any bumps in the road.

So, be careful when it comes to avoiding any sizable debt over time. This often means you avoid running up one or more credit cards as time goes by. In the event you need to take out a small business loan or two over time, do your homework. The goal should always be to land the best loan with the best terms.

From where you start your business to best financing it and more, do all you can to give it a chance to make it.

Get the Word Out and Keep Spreading it

Even when you have done all you can to open the company the proper way and manage money, there is more to do.

That said you want to do your best when it comes to spreading the word of what your company has to offer.

So, make sure you use all the resources at your disposal.

This will be your website, social media pages, an online store should you opt for one, a small business app and more. You also want to be active in the local community whenever you get the chance to do so.

By doing all you can to alert consumers to what you have to offer, you improve chances of your company making it.

Even with all the responsibilities you have, know hard work and determination can help you do it.

Is Your Startup Financially Sound?

Buying a startup could be seen as a risky proposition by some people.

That said how much confidence do you have your startup of choice will get off the ground with flying colors?

By making the right moves and with a little luck, you could position your startup for success in the years to come.

How Good Are Your Money Management Skills?

When giving your startup the best possible chance to succeed, one of the keys of course will be finances.

With that in mind, will you make the right financial decisions to place your startup in good position?

Before starting a company, you want to be as sure as you can that financial issues will not cloud the situation.

For example, what do your finances look like these days?

In the event you are having financial struggles, is starting a company now in your best interests? You may decide it is better to wait further down the road. That is with the hope things will trend better for you financially sooner than later.

Since you want your startup’s performance to be good right out of the gate, what resources can help you measure it?

One option is to turn to a SaaS valuation calculator.

That Software as a Service (SaaS) calculator gives you a better read on the value of your startup. Such information can help you when it comes to making any key decisions tied to your startup.

When looking at your ability to manage money in a startup, you also want to not have a cloud of debt hanging over you.

Such debt can saddle you with trouble now and down the road if not careful.

That debt can be the product of having too many outstanding loans to pay off. It can also be a product of sizable credit card debt you’ve not efficiently addressed.

No matter the reason for the debt you’re carrying, your focus should be on getting it down as soon as possible.

When you look at money management, the hope is you do not see a lot of red flags staring you in the face.

Where Will Your Startup Operate Out of?

One of the big choices facing you when it comes to your startup will be where to operate out of.

Yes, this is a decision that can and likely will have a financial impact on you. As a result, it is important to decide correctly. 

One option would be to rent or buy office space away from your home. This can be even more of a need if you will have employees working under you. The same is true if you will have customers coming to you to buy goods and services.

If you will not have employees and everything in your startup is online, you may opt to work full-time at home. This can be more convenient for you for several reasons. Among them would be no long commutes to and from work and the comfort of being under your own roof. Both can save you money over time.

Think it over and decide what is best for your startup needs.

As you push ahead with a startup, are you confident finances will fall into place?

3 Tips When Beginning a Business?

If you have the passion and ability to start a business, how confident are you it will fall into place?

Yes, running a business is a major undertaking for most people. That said it can be one of the best decisions they end up making over time.

So, are you ready to get the ball rolling and set yourself up for potential success for many years to come?

What Will it Take for Success?

In coming up with the right game plan to increase odds of success for your business, hone in on the following tips:

1. Know how to position for success – You won’t get far in the business world if you do not position things for success. That starts with being a good money manager. The failure to properly manage funds can be catastrophic at the end of the day. From avoiding overspending to running up debt and more, be smart when it comes to your money needs. How you structure your company is also key. That said you also want to know what is a C corporation and other definitions of a company. Knowing these kinds of things can help you structure your business, avoid tax issues and more. When you have shareholders involved, keeping them happy is important too. Do your research in setting up your business so that it gets off the ground and running in the right direction.

2. Know where you will work from – Don’t overlook the importance of knowing where you will base your work out of. Depending on the size and scope of the business, you may or may not need a physical workspace outside of your home. If you do decide to base things away from home, will you look to rent or buy work space? Having your own building can put you in firmer control of things. That said it can also prove much more expensive. Should you decide to rent a workspace, look for good terms and conditions. Given you are at the mercy of someone else, you do not want it negatively impacting your ability to do business. In coming up with a permanent workspace, will you have customers coming to visit you? If yes, think about how your choice of a location will impact them. The same goes if you will have employees coming to work for you.

3. Know how to reach the public – Finally, you can’t expect to do much when it comes to sales if too few consumers know you. That said do all you can to get the word out about your business offerings. Putting the web in play, be active in the community and providing good service are but a few of the ways to go about this. The hope is many folks will see you as a better alternative to your competition and want to do business with you.

As you go about beginning a business, will you make all the right moves starting from day one?

3 Keys When it Comes to Business Growth

Growing your business is one of the key things you can do over time when you are the head of the operation.

With that thought in mind, what will it take for you to position your business for growth as the years go by?

From being in a good financial spot to marketing the heck out of your business, there are things you need to be on top of.

So, how confident are you in your abilities to score growth for all you’ve worked for?

Position Your Business for Success

When it comes to growth and ultimately success for your business, here are three keys to hone in on:

  1. Monitoring finances – It goes without saying you won’t be around too long if you do not have a good sense of finances. Too many financial miscues can put you out of business before you know it. That said you want to keep a close eye on your financial books. Look for any red flags that can in fact land you in the red all too often if not careful. While most companies go through a few peaks and valleys in sales and revenue, you do not want to be mired in the red. Also look to pay down any sizable company debt you have. Too much debt can saddle you with tough times. The most notable would be if you have major credit card debt. You also want to be sure you are getting good deals. When buying company supplies from vendors; do your best to get deals.
  2. Deciding when change is needed– You also want to keep your eye on the prize when it comes time to make any major changes. As an example, do you have visions of changing your business from an LLC to C corp? If yes, you want to be sure and determine when it is best to do this. Doing so can help you with going after more capital, finding more tax benefits and so on. You also need to be on top of when it may be time to expand your business to a bigger office. If space is tight, you are feeling cramped? Also, is it impacting your bottom line when it comes to money and production? If yes, a bigger space may be the way to go. Having your finger on the pulse of change is key so you do not miss out on opportunities to grow.
  3. Spread the word each day – Finally, can you imagine how challenging it would be to grow if too few folks knew about you? Yes, not doing a good job of marketing your brand can be a real killer for you and your business. That said use all the tools available at your disposal to get the word out. Also make it a point to give good customer service each time out. This can be the easiest and best way to grow your business. Happy customers tend to tell other people they know about specific brands. That of course can lead to more sales and revenue.

When growing your business is a big priority for you, how will you tackle this major project?

7 Financial Actions Every Person Must Learn

For many young people, saving is something that seems an impossibility. Most of them want to live today and let tomorrow have its course, but did you know that the earlier you start saving, the more comfortable life becomes? The young generation focuses on a good lifestyle today and forgets that there is a future where they will not have the energy to work as they can today. Do you want to be a burden to your family and relatives when old age kicks in? If no, then you have to create a good plan for the management of your finances.

1. Have someone to look up to

It is usually challenging for a young person to decide on what you are supposed to save and what to consume. Having somebody who has some experience in investment and its returns to guide you is a great idea. When choosing a mentor, make sure you select a person with whom you can be open with. You must give them the details of how much you earn and how much you are willing to save for future use comfortably. A financial mentor will guide you on where best to stake your money and how to do so.

2. Work with a budget

If you want to feel the value for your money, always work with an account. Have you wondered where your money has been going to? Have you had situations where you cannot explain what you did with your money? That is because you have not made a working budget, your friend. A store enables you to know what money goes where and when it has been used. This way, you can account for your cash accordingly without much wastage. For example, a person who works on a budget is less likely to be an impulse buyer. A person who doesn’t work on an account is expected to buy things that they had not planned on.

3. Begin saving at a young age

The earlier you start saving, the less complicated your life will be in the future. It would help if you built a good retirement plan. Make sure you keep a third or at least 20% of your salary. When you make a habit of saving, it will never be difficult for you. It even gets better when working with a budget. What is left after all the allocated for expenses is available for your savings.

4. Don’t just rely upon one job

The more you earn, the more you can save. If there is any way you can make an extra coin, go for it. At times what you make with one job is not enough to cater for all the bills and have enough for saving. It is therefore advisable that you take another job or use your talent and skills to make extra money. The extra bucks you make will help you solve financial problems you wouldn’t have solved with one payment.

5. Watch your expenses

Live within your means. That is one of the greatest weapons you can use for financial management. Living above what you earn or can manage is an enemy of progress. It will not only ensure that you do not save but also put you into debt. Paying debts is one way to ensure that you have financial freedom but accruing them will make your life miserable.

6. Have an emergency fund

Learn to save for emergencies. With life, you can never place a sure bet on what is going to happen tomorrow. Bills will always crop up. To cater to hardships that arise, you can always open an account with a high interest-paying bank, buy stocks in the stocks market, or buy shares in the real estate.

7. Invest in insurance

Never play around with uncertainties. Today something may be all good, but how about tomorrow? You have no idea what is bound to happen. For that reason, always ensure that you have your home insurance, car insurance, and health insurance in good shape. Health is one of the most expensive bills you may have to incur. It is, therefore, essential that you safeguard both your health and property. After some years, your home will be needing repairs. Without home insurance, to will have to dig into your pockets to cater for the costs.

Bottom line

They say that the early bird catches the fattest worm. It would be better to work hard when you have the energy than when you are old and feeble; young or old bills will still be there, but when you learn to save when young spares you from the struggles when you retire. Entrepreneurs and people in business have taken it to a greater level by going to colleges and universities to pursue personal financial planning. Such a course ensures that you have a viable financial plan to help you throughout your life after retirement.

Ways of Cutting on Your Budget Expenses

The world currently faces one of the worst economic times and a potential recession in the history of humankind. Unfamiliar with the term? Check the term writing paper help site for insights related to recessions besides the other recent occurrences when it comes to economic recessions.

The Covid-19 health pandemic has had a significant impact on the financial flow from an individual level to the macroeconomic level. Many businesses and companies have folded, while others have readjusted their workforce programs. Consequently, this has led to massive layoffs and a loss of income for many households. 

All this, coupled with an uncertain financial or economic future, requires individuals to reduce their expenditure to not only stay healthy but stay afloat as well. So how can you cut down on expenditure effectively?

Effective Ways of Reducing Your Expenditure

  • Compare your income VS your expenditure list to have a clear picture of where you have missed the point over the years. Eliminate any unnecessary expenditure and streamline your balance to stay afloat. Ensure your expenses rank below what you generate as your income.
  • Cater for the unexpected. Most individuals have indeed learned the hard way when it comes to the unexpected happening. For you to avoid taking a financial hit next time, it’s appropriate to take a specific proportion of your income each month, and dedicating it to handle unforeseen circumstances in the future. Ensure it ranges around 10% of your total household income. 
  • Trim your expenses. You have to scrutinize each expense intensively and together with your family. It will assist you to understand every penny and where they go to eliminate unnecessary expenditures. Such an awareness will help the whole family prioritize their essential needs and timing of those needs when they arise.
  • Examining your interest rates. Consider and re-examine the rates you currently have to pay in terms of interest for specific things like car insurance. Additionally, deliberate if you have any opportunity of getting better deals elsewhere, the capacity to repay, and the opportunity of renegotiating with your creditor. For instance, it makes no sense to continue remitting the same rates for car insurance when the car stays parked at home.
  • Bond holidays. It has to get scrutinized properly, as recklessness can lead to repayment of the same interest vacated during the holiday upon the lapse of the holiday. Further, use the money if you must take it on things that don’t prove recurrent expenditure or expenses in general.
  • Focus on capital expenditure instead of current expenditure when it comes to borrowing. Capital expenditure will always yield results, especially, when repaid fast enough to reduce the interest as they prove long term investment. Current expenditure, on the other hand, will always leave you in a position of vulnerability as you will have to repay the credit together with the interest, unlike capital expenditure where the loan repayment only covers the interest in the long run.
  • Acquire a credit card consolidation loan for all your debts. Consolidation of debt always allows you to manage it effectively. 

Conclusion

You always have to look at your budget expenses wholesomely. Every small financial action or decision you make now can influence your expenditure, now and in the future. 

The Complete Guide on How USDA Loans Work

It’s every American’s dream to own a home. Unfortunately, getting a mortgage for your dream house is never easy, as there is a lot of paperwork involved before you can qualify. Thankfully, the USDA loan program is here to help anyone who cannot qualify for other mortgage types get a loan.

But getting a house financing through USDA loans also comes with a catch. You must be willing to buy a home from eligible rural or suburban areas. If you’re a little confused about what these loans are and how to get one, this article is for you. 

Read through to understand everything you need to know about USDA loans and how they work.

What Is a USDA Loan? 

The U.S. Department of Agriculture mortgage programs offer loans to American residents willing to own homes in rural areas. If you’re eligible for the USDA home loans, you will get the rural and suburban home financing at zero down payment. 

This program aims to improve the economy and raise the quality of life for America’s rural parts. As a result, they’re willing to make home loans easily accessible in rural areas at very low-interest rates. Thanks to the program, about 127,000 families were able to buy and upgrade their homes in 2017.

Well, before you think of joining those who’ve benefited from the USDA program, you need to take time to understand whether the loan is good for you. Go through USDA loan reviews to learn about the loan, your eligibility, and how to get one. 

How Does USDA Loans Program Work?

To understand whether you qualify for this type of home loan, it’s important to understand how it works. The USDA loan programs fall under three categories.

The first is Section 502 Guaranteed Rural Housing Loan. Local lenders that participate in this program give out the loans. With this, you don’t have to put in a down payment, and you still get low-interest rates for the mortgage.

But you have to pay a mortgage insurance premium to cover the loan. Should you default, the USDA insurance will cover 90% of the losses. With this, lenders are encouraged to offer loans to borrowers they would not give a mortgage under different circumstances. 

Secondly, if you’re a low-income earner willing to own a home in the rural areas, the USDA offers you direct loans. What’s considered a low or very low-income threshold may vary from region to region. Homeownership direct loans, also under section 502, come with subsidies and interest rates as low as 1%.

The final category is the home improvement loans and grants which homeowners in rural areas get to repair or upgrade their homes. This can also come in the form of grants offering up to $27,500 of help. The grants consider the given household’s income.

Qualifying for the USDA Loan Program

Qualifying for a home loan with the USDA Program varies from location to location and considers the size of the household. The first general requirement is that the owner-occupied primary residences get the funding.

Below are other eligibility criteria to qualify for the loan.

  • You must be a U.S. citizen or a permanent resident
  • You make a monthly payment that’s 29% or less your income
  • Have a dependable income for a minimum of 24 months
  • Good credit history and a score of at least 640

A Step by Step Process of Applying for USDA Loans

To get your USDA loan, you need to apply using a process almost the same as other loan programs. However, there are a few exceptions because of the government guarantee. 

Here are steps you need to follow when applying for the USDA program loan.

Find a Lender

Your first process will be to find a USDA-approved lender. There are many lenders willing to give U.S residents an opportunity to own a home in rural areas. You must know that some of them only give the loan a few times a year hence not consistent.

Get Prequalified

The next step is ensuring you get prequalified. This way, you also get to know if you’re really eligible for the program and how much you can afford. Make sure you narrow down the list of homes you can afford and save yourself time and effort.

Your lender can also help you figure out how much you can afford and whether you qualify. They’ll also give you red flags on the things that may hold you back from qualifying for the USDA loan.

The Loan Pre Approval 

While the prequalification is based on mere estimates, the preapproval is a deeper process that considers your actual financial situation. The lender verifies your income and all the financial information. 

They’ll require documents such as your bank statements, W-2, and tax returns, Photo ID, Bank statements, photo ID, and Social Security awards letter. They’ll determine your debt-to-income (DTI) ratio and determine the amount you can borrow.

This process is a very crucial one as sellers and real estate agents depend on it when getting offers. Getting a preapproved letter will prove to them that you’re serious and a strong borrower. 

However, this process is not enough to guarantee you a USDA home loan. There are still conditions ahead of you before you get the final approval.

Find an Approved Home

Once you pass the above processes, it’s now time to find your ideal home. Real estate agents can help you research the housing market so that you find a house eligible for the funding. You need a qualified house in rural areas according to USDA rules.

Another requirement is that the home must be within your primary residence and meet the required property conditions. You don’t have to worry about this because a good real estate agent can do the work for you pretty fast.

Sign a Home Purchase Agreement

Once you find an eligible home and like it, work with your lender and the real estate agent to come up with an offer. Just because you’re paying a USDA loan doesn’t mean you cannot negotiate with the seller. Come up with a deal about covering all or some of your closing costs.

You and your seller will need to sign a purchase agreement, after which the lender will order a USDA loan appraisal. An appraisal is not a home inspection but is a requirement from the USDA that safeguards the homebuyer. 

This process ensures the property meets USDA standards and is move-in ready. If it doesn’t meet any of the standards, it will need to undergo fixing before you can sign the agreement and move in.

Processing and Underwriting

The underwriting process involves a review of your information and examination of your file. This process confirms that all your information and documents are accurate and honest.

You should prepare yourself for the underwriting process because it usually takes longer than that of traditional mortgages. This is because USDA loans undergo a two-party approval system. 

The first is when the lender underwrites the file to meet all the USDA loan requirements. The second underwriting is done by the USDA, which can be manual or automatic. The program requires that a borrower has a credit score of not less than 640 to qualify for the automatic system known as GUS.

Closing

When your underwriters are satisfied with all your documents and information, you can now move to the final stage, which is closing. The lender and the USDA will sign off your loan file and give you a clear to close.

The closing process involves signing all the paperwork and finalizing the USDA loan. You can then be an approved owner of a new home, and it’s upon you to decide when to move in.

What If You Don’t Qualify

Not everyone qualifies for a USDA loan. But this doesn’t mean you can’t get any other loan because there are other alternatives. Consider FHA loans, which are somehow similar to USDA guaranteed.

The only difference between the two is that FHA loans are more expensive than USDA loans. Each of the loans needs an upfront fee, which can be rolled into the loan balance. Both need you to pay for a monthly mortgage insurance premium though that of USDA is less and decreases as you pay your loan.

Consider Getting USDA Loan if You Live in Rural Areas

Life in rural or suburban areas is simple and peaceful. But nothing gives you more satisfaction than living in your own home. And now, the USDA Loans program makes that happen by offering you an affordable mortgage with easy accessibility. 

Make sure you find a reliable loan officer who can help you go through the process seamlessly from the start to the end. Take time to learn more about the loan process and work your way into qualifying.

If you rather take an alternative mortgage, we’re still here to help you with everything you need to know. This site has different articles offering the information you need concerning your mortgage and other types of loans.

How Much Life Insurance Do You Need?

There are so many financial pressures on people today that thinking about insurance premiums may be the last thing on our mind as it’s just another outgoing. However, it’s those ‘pressures’ and the uncertainty they create, that are the very reason it’s wise to consider life insurance.

Life insurance is a way of helping to provide for those you love in the event that you or your partner pass away. Unlike the economy, life insurance can provide a measure of financial certainty for the future.

The question we will consider in this article is how much life insurance do you need? This is an important question because you’re paying for that insurance now, so you don’t want more than is necessary, while at the same time, you don’t want it to come up short.

Guiding Financial Principle

To accurately assess how much insurance is needed, it’s important to understand more clearly what is the purpose of life insurance. It’s not just a bag of money for your loved ones when you die. A savings account will achieve something similar.

No, a life insurance policy is a financial product designed to cover the financial gap between all of your assets and your long-term financial obligations. Those obligations could include paying for your children’s education etc. It might also include any debt that you have acquired and are steadily paying off.

Ballpark Figure

Without analyzing your existing circumstances and financial situation it is impossible to put an exact figure on your life insurance. However, you can calculate a ballpark figure that’s a minimum of what you should be thinking about. You can do that as follows:

1. Multiply your income by a factor of 10

2. Multiply each child by $100,000 (eduction costs)

3. Add up all of your existing debt (including your mortgage)

These 3 values add together so that you at least know what you should be aiming for. Of course, there are several reasons why this figure may vary. To help be more precise, you can use an online insurance calculator to further approximate your needs.

Don’t Forget Funeral Costs

Funeral costs can be expensive and if they’re not planned for they will present an early financial burden on your family. You’re wise to include those costs into your insurance policy.

To precisely calculate your financial needs while offsetting what you can realistically afford requires professional input. Check out this website as a starting point in getting some professional advice at http://gesselins.com.

Understand How Much Life Insurance You Need

In this article, you have read about the basic financial principles that underlie the calculations of how much life insurance people should plan for. It’s important to remember that insurance is a financial product that someone will want to sell you.

So the better informed you are with the principles discussed in this article, the more likely you’re going to make a good decision. Check out other practical articles on our site that will help you make sound financial decisions.

5 Employee Financial Wellness Trends That Will Rule 2021

Are you running or managing a business? As businesses feel the effects of the pandemic, you must determine the key areas that need utmost focus and attention.

As for the sustainability of any business, employee wellness is paramount. The effects of the pandemic are encompassing. Apart from affecting the mental and physical well-being of employees, the pandemic also hits hard on the financial side of things. 

Thus, you need to look at employee financial wellness. But before you implement anything, you need to learn about the trends that will affect employee financial wellness strategies.

Continue reading below for five important financial wellness trends you need to follow.

1. Employees Will Want “Real” Help

Financial planning is no easy task to implement especially for small businesses. With so many grounds to cover, employers tend to overlook what their employees truly want. Sure, the workers are looking for financial respite.

But the question is how do business owners bring help to their people? Do they use the proper approach and methods that align with the needs of their employees? 

One key trend is that workers will look for real help. Employees will want to see something they will find actionable. Advising on saving money is good. 

But learning about the appropriate actions is another thing.

Thus, avoid using a comprehensive and heavy approach to employee financial wellness. This will tend to overwhelm your employees. Instead, consider integrating your financial wellness approach into mental and physical programs.

Don’t merely zoom in on your workers’ finances. Try touching on their overall well-being. This means going beyond the basics of saving for rainy days. 

Connect in a more personal manner by teaching them how to buy a home. Teach them how they can reduce and eliminate their debts. Guide them on saving for bigger milestones like weddings.

2. Personalization Through Technology 

Another important trend is personalization through technology. Though the two concepts may seem contrasting, they can work hand-in-hand. 

More employees will clamor for tech-driven solutions that offer personalized assistance. Make sure your financial planning solutions feature simple yet modern tools and interface.

With the financial, mental, and emotional stress of the pandemic, employees want to experience the benefits of employee financial wellness without hassle. For starters, workers want to see solutions that outline their current financial standing.

As we discussed earlier, they want the solutions to use a personalized approach. They also want solutions that make them accountable for reaching their goals.

Moreover, they want to see digital solutions. They also want them to come with a high level of functionality. Hence, consider using tools that use account integration. 

Furthermore, your tools should feature personalized budget planners. You also want to invest in programs that come with repayment calculators and finance snapshots, among others.

And to further up the ante, invest in SMS alerts and live webinars. You can use these tools to update your employees concerning their progress.

3. Increase in Financial Wellness Programs

There will also be a trend in different types of financial wellness programs. As we mentioned earlier, you need to offer something that doesn’t use only a financial approach. Thus, more companies will offer programs that also focus on success, productivity, and engagement.

But why is having a diverse approach important? Surveys reveal that financial problems affect the performance of about 83% of workers. This means workers will be looking for financial wellness programs that use a holistic approach.

Personalization will again play a major role in this aspect. Since each person has different needs, they will look for programs that will help them reach their wellness goals depending on their specific requirements.

Furthermore, workers will also look for programs that will help keep them healthy. With the mental and physical toll of the pandemic, employees will want to join a program that will keep them fit both in mind and body.

And of course, they will want to join a program that tackles financial training and literacy. This program should help them deal with financial challenges during the pandemic. It will also help them prepare for life after the pandemic.

Additionally, they will look for solutions that allow them to access their earned pay anytime they want. Check out this service to learn more about Earned Wage Access.

4. Increase in Educational Financing

As some workers are still paying for their student loan debts, there will be a call for more solutions that help workers pay off their existing student loan debts. And if you’re looking to hire new graduates, expect them to pay higher loans; no thanks to the rising cost of education.

Hence, you will see companies offering loan repayment education. This program can help your employees plan and strategize their student loan payments. It will create a more feasible payment structure that will help them put their loans to bed faster.

One key benefit of this program is that you develop loyalty in the company. By providing a solution to pay off your employees’ debts, they will perform better at work. They will develop a deeper appreciation for the company.

5. Data Analytics to Play a Bigger Role

Last but not least, data analytics will have a huge impact on financial wellness. Since personalization is non-negotiable, the need to perform data analysis becomes more important than ever. 

In 2021, you will see companies using analytics to better understand their employees. This will help them categorize their workers.

Through analytics, companies can differentiate their workers via their demographics. In turn, they can develop more financial wellness programs that are more suitable to their employees.

Go Beyond Employee Financial Wellness

By following the trends in employee financial wellness, you can assist your employees better as they go through the challenges of the pandemic. In the same way, you will also help your business stay afloat in these challenging times. But financial wellness is only one of the many bases you need to cover.

We encourage you to expand your knowledge of business management. Check out our other articles where we discuss important topics that will help your business grow the right way.