“Your economic security does not lie in your job; it lies in your own power to produce—to think, to learn, to create, to adapt. That’s true financial independence. It’s not having wealth; it’s having the power to produce wealth.”
There are different aspects of judging a business’s credibility and potential. And one of them is how a company is treating its employees.
Now when it comes to taking care of the employees, most businesses and human resource departments confined their thought processes to offering desirable salary packages.
But when you wake up to this world’s realities, you will see providing financial freedom to the employees as one of the best ways to retain them. Businesses who often face employee retention as a major challenge must consider providing financial freedom to their employees.
Before moving on to how you can offer your employees the best kind of financial freedom, let’s sneak into its literal meaning.
What is financial freedom?
Financial freedom, also referred to as financial independence, is a valid status of having regular income to survive in life and fulfill one’s family’s living expenses.
Here, either the individual has to be self-employed or financially dependent on an organization or business where s/he has been working as a permanent employee.
If the person isn’t working and still has enough passive income to survive throughout their life, it can be counted as financial freedom. The literal definition of financial freedom may vary from person to person.
Unfortunately, most people fail to understand the meaning and importance of financial freedom and later suffer financial crunches throughout life.
Some of the common consequences of people who fail to deal with financial requirements are – profligate spending, increasing debt, financial emergencies, and some other financial issues that hinder the financial goal achievement.
Additionally, what makes it worse are circumstances like a pandemic, earthquake, hurricane, etc.
Ensuring financial stability for employees
When it comes to employees and an organization in alignment with financial freedom, businesses should come up with a reliable worker’s compensation insurance plan that can offer complete financial security at its best.
Such insurance plans work the best for uplifting the business reputation while ensuring a safer work environment for the employees. Most businesses provide such insurance programs on the basis of the employee’s work nature.
For instance – A construction company may provide a more facilitating worker’s compensation insurance plan for a worker than an employee working within the office premises. This is due to the higher risk of life and accidents.
Worker’s compensation provides the best kind of financial assistance covering the major aspects of one’s life. Here are insights to the same.
What is a worker’s compensation insurance plan?
The worker’s compensation plan is a type of government-mandated system that pays the employee’s mandatory benefits as per the mentioned terms and conditions.
When the employee gets injured or suffers from an accident at the workplace, s/he becomes eligible to get the organization’s necessary financial and medicinal help.
As per its nature and perks, it won’t be wrong to refer to this as a type of insurance plan that covers many different spheres for the employees. Most of the worker’s compensation offers financial benefits for accidental and medicinal expenses.
Some of the other ways of enjoying financial freedom
Set life goals – When it comes to having financial freedom; first, people need to understand its literal meaning and find the same objective.
Therefore, begin with writing down how much money you should have in your bank account. This should be followed by the overall expenses on the lifestyle and other facilities incurred.
Additionally, make sure to mention the desired date or age decided to achieve the mentioned goals. All these factors will help you remain aligned with your goals and financial stability.
Pay off all the credit card bills – Some of the high-interest consumer loans are highly toxic based on the wealth-building process.
Mortgage, student loans, and other similar loan types come with quite lesser interest rates.
Therefore, paying them is not an emergency ever. But at the same time, when you make sure to pay them at the predefined time, you step towards making your credit score rating better than ever.
Decide on a budget – Now, when you have decided to attain the best ever financial freedom, you need to brace yourself for the budget-making activities.
Thus, make a monthly budget mentioning all the household expenses, which can help you keep a soundtrack of all your expenses and leftover money at the end of the month.
Start making smart investments in your life – Your 9 to 5 job may not have compelled you to think about investing in something big ever, but now is the time to do it. Investments are essential if you desire to be financially free and reap your hard-earned funds’ maximum benefits.
For this, you need to understand the magic of compound interest. This will help you increase the compound interest while achieving the meaningful growth you have been looking for.
One of the most productive ways to open a brokerage account online is to guide you through the detailed process of investing your money in innovative and evergreen platforms.
Start with creating a manageable portfolio where you can make weekly or monthly contributions automatically. For this, you can associate with the brokers to get familiar with the basics of this world.
No matter a businessman or an employee, everyone deserves to have the best kind of financial freedom to safeguard their family.
Talking about the employees, they tend to rely on the organization the most for reliable financial freedom.
Considering it as one of the most significant necessities, most businesses offer quality financial freedom to their employees. Besides having the back of the employees, such initiatives help strengthen the reputation of the business in the marketplace.
This article is written by Saara Green, all views and opinions expressed are her own.
Thanks for reading, please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.