5 Financial Basics Every Employee Needs—Now More Than Ever
As life gets busier, it's easy to overlook the essentials that protect your health, your future, and your family. Whether you're just starting your career or have been in the workforce for years, it’s important to have a strong financial and benefits foundation in place. Here are five key essentials every employee should prioritize—no matter your age or stage.
1. Health Insurance: Protect Your Wellbeing
Health insurance isn't just for emergencies—it’s for preventive care, peace of mind, and long-term wellness. Even a basic plan can save you thousands in the event of an illness or accident. Make sure you’re enrolled, understand your coverage, and take advantage of perks like telehealth and wellness programs.
Tip: Check if your employer offers Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to help save on medical expenses with pre-tax dollars.
2. Life Insurance: Support Those Who Depend on You
If someone relies on your income—spouse, child, or even a parent—life insurance is essential. Many employers offer a basic policy at no cost, with the option to add more coverage. It’s a small investment that can make a big difference.
Tip: Consider how much coverage you’d need to replace your income, pay off debts, or fund future needs like college tuition.
3. 401(k) Retirement Plan: Start Now, Retire Smarter
Time is your best friend when it comes to retirement savings. A 401(k) allows you to invest pre-tax income for your future—and if your employer offers matching contributions, that’s essentially free money.
Tip: Contribute at least enough to get the full employer match. Can’t do much now? Start small and increase your contribution each year.
4. Tax Planning: Keep More of What You Earn
Tax planning isn’t just for April. Smart strategies throughout the year—like contributing to a 401(k), HSA, or dependent care FSA—can reduce your taxable income and increase your refund.
Tip: Review your withholdings and talk to a tax advisor annually to ensure you're not overpaying or underpaying.
5. Estate Plan: Yes, You Need One
Estate planning isn’t just for the wealthy—it’s for anyone who wants a say in what happens to their assets, their health care, or their dependents. A simple will, power of attorney, and healthcare proxy can save your family time, stress, and money.
Tip: Many employee assistance programs (EAPs) or legal benefits include free or discounted estate planning tools. Ask HR what's available.
Bottom Line:
These five essentials are the building blocks of financial stability and peace of mind. If you’re missing one, make it a goal to get it in place this year—and if you have them all, take time to review and update them annually.
Contact Melanie, melanie@ewmginc.com, for help designing your Employee Benefits Plan.
If you have any life changes or updates to your benefits that you need us to address (I.e., address change, marriage, the birth of a child, loss of coverage, etc.) please do not hesitate to contact us at 215-579-5601 or email us at info@ewmginc.com.
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