How to Build Your Own ‘DIY’ Financial Wellness Program in 2024

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Does your employer offer financial wellness benefits? If not, here’s how to create a DIY (do it yourself) financial wellness program! 

Many companies are starting to offer financial wellness programs to help their employees build emergency savings, manage their money, invest for retirement, and reduce financial stress. But what if you’re on your own?

If your company isn’t offering these benefits, here’s a quick guide to creating a do-it-yourself (DIY) financial wellness program.

1. Build emergency savings

They say that “cash is king,” and having some emergency savings in cash should be the first priority for financial wellness. Even before you pay off all your credit card debt, before you save for retirement, you should try to build up some emergency savings in a high-yield savings account.

Why save cash if you haven’t paid off all your debts? Because cash gives you options. Having cash means you don’t have to panic. Cash gives you time to think things through and make the best possible moves for your personal finances. Even if your credit limit gets reduced, even if you have to make minimum payments on your credit card, having emergency cash in the bank gives you a little bit of extra breathing room in case of emergency. And it feels incredibly empowering to watch that number in your bank account grow.

Ideally, you should try to save enough cash to have three to six months of living expenses in an emergency fund. If that goal is out of reach for now, that’s OK — but try to save a few thousand dollars, or get to the U.S. median savings account balance of $1,200. Having $1,200 in the bank can help you pay for an unexpected car repair, medical expense, a deposit on a new apartment, or the deductible on your homeowners insurance in case of disaster.

2. Make a debt payoff plan

Now that you have some cash in the bank, it’s time to build momentum for your financial wellness and pay off debt. Whether you have high-interest debt like credit card debt, a personal loan, or an auto loan that is often lower interest, you might want to make a plan for how to pay off debt faster. The best debt payoff apps can help you visualize a path forward for your debt, showing how long it will take to be debt free depending on your monthly payments and interest rates.

3. Maximize your matching dollars in a 401(k)

If your credit card debt is paid off, or even if you’re still getting started with paying off debt, you should make one simple move for your long-term retirement savings: get your 401(k) match. Many employers offer a 401(k) match based on the percentage of your salary that you contribute to your 401(k) or other work retirement plan. For example, if you put 6% of your salary into your 401(k), your company might match it with an additional contribution equal to 3% of your salary.

Not every company offers this, but see if yours does. If you can get a 401(k) match, don’t leave that “free money” on the table. Even if you need cash to build emergency savings and put toward other financial goals, it’s important to put money into your retirement plan from every paycheck, starting from a young age. Your future self will thank you!

4. Find extra cash in your budget

If you’ve paid off your credit card debt, you’re building up your emergency savings, and you’re contributing to your 401(k) or other retirement accounts, it’s time to take your financial wellness to the next level. Try to get more rigorous about how you spend your money.

Are you really spending your money to have a richer life? Are you spending money on happy memories with people you love? Are you getting good value for your money, with high-quality products and lasting experiences that matter to you? Or are you doing unconscious spending, signing up for too many subscriptions that you don’t use, eating too many last-minute takeout dinners, and doing the financial equivalent of aimlessly scrolling through life?

Use a budgeting app to track your spending. What if you could find an extra $100 per month in your budget? You’d have an extra $1,200 in your savings account in 12 months.

5. Support your physical, mental, and financial health

There’s another old saying that “health is wealth.” The whole point of saving money, paying off debt, and getting smarter about budgeting is to help you have a healthier, happier life. If you have some breathing room in your budget, hopefully you can find some time to take a big-picture look at how you’re feeling about your life. Ask yourself:

Are you getting enough time to sleep, to exercise, to eat delicious, healthy meals?Are you seeing friends and loved ones as often as you’d like?Are you getting regular medical checkups to take care of your health?Do you have a local community group that you belong to, where you can socialize with people you care about?

Financial wellness can support your other health and wellness goals. Don’t be afraid to spend money on therapy, joining a gym or fitness center, hiring a personal trainer, or investing in some high-quality sports equipment that will get you off the couch. Invest in your health, body, and mind, and your financial health is likely to improve too. Financial wellness and personal wellness are often interconnected.

Bottom line: Financial wellness isn’t just about paying off debt or saving money. It’s about giving yourself a foundation of strength so you can be resilient. Spend money on experiences, memories, and support for your physical and mental health.

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