Am I supposed to have six months of living expenses in my savings account? How do I get out from under this mountain of debt? How would I pay my bills if I’m unable to work? Am I ever going to be able to retire?
For many people, uncertainty about the future and their financial security cause a significant amount of stress. Financial stress is immediate and can reverberate. Not knowing how to pay the monthly bills or pull yourself out of debt can lead to excessive worry.
Although finances can drive stress and anxiety, financial security can contribute to good mental health. Knowing you have a solid safety net in place should your circumstances suddenly and unexpectedly change can reduce some of the uncertainty in life’s surprises. MTA Benefits offers several programs to help members improve their financial security and protection. So, while you can’t always control the unexpected, there are a few financial steps you can take to safeguard your well-being.
Disability Coverage
If you’re out of work and savings dry up, problems can compound and escalate quickly: How do you pay your rent or mortgage, or medical bills, without a paycheck? MTA disability insurance could provide a benefit to you if you’re unable to work due to an injury or illness, including issues related to mental health. Developing a protection plan, though, also has the potential to improve one’s mental health. Taking control of your finances and mitigating future risk can create peace of mind, knowing that you and your loved ones can continue to enjoy your standard of living.
Disability and life insurance plans also can provide you with protection against the risks presented by major life events — such as illness, injury and death — which have the potential to destroy a financial plan. This protection can help you feel calmer and better prepared should the unexpected occur.
Since 2001, the MTA disability plan has paid out more than $39 million to members when they needed assistance, helping to reduce anxiety and stress through life’s challenges. Whether the need is maternity leave or an extended leave because of an illness or injury, the MTA disability insurance plan can replace a portion of your income, allowing you to make student loan or mortgage payments, plan for children to go to college, and prepare for a secure future.
Debt and Student Loans
Carrying debt can take a heavy toll on your mental health. Seventy-seven percent of American households have debt, according to a study conducted by Forbes Advisor. And 54 percent of respondents with debt stated they always or often feel stressed because of it. That stress can manifest itself physically, leading to trouble sleeping or more frequent illnesses, and oftentimes strains relationships.
It might feel impossible to pay off a large amount of debt, whether it be credit card debt, a personal loan, student loan or something else. The truth is, it is possible to break free from debt – and do so without paying exorbitant fees to unscrupulous companies or by destroying your credit scores. MTA members have access to debt counseling through Cambridge Credit Counseling, a Massachusetts-based nonprofit. In working with them, you can create a plan to pay off your debt and improve your financial situation so that you can focus on living rather than worrying.
We know that student loan debt, whether your own education loans or Parent PLUS loans, can be overwhelming. Cambridge Credit Counseling also offers student loan counseling services to members, to help them create a plan that works for their budget. Cambridge Credit Counseling can explain what your forgiveness options are for education debt. In the past few years alone, its counselors have helped hundreds of educators receive tens of thousands of dollars in student loan forgiveness. An easy first step to learning more about repayment options is to join a free webinar. Visit www.mtabenefits.com/student-loan-webinars to register for an upcoming session.
Planning is Key
Being debt-free, or simply creating a plan to be more fiscally responsible is incredibly helpful for mental health, but it won’t last if you don’t create a plan for the future. How will you ensure you won’t be greatly burdened by debt again? Have you created a budget? Do you know how to set yourself up now for success in retirement? The guidance of a financial planner is a crucial stop on the journey to financial security.
People often put off the search for financial planning services because they don’t know how to choose a reputable company that isn’t trying to sell them a product or charge excessive fees. MTA Benefits’ financial planning partner, Stacey Braun Associates, has extensive experience in assisting union members with financial planning services. The advisers at Stacey Braun are fiduciaries and do not try to sell their customers any products. Their only goal is to assist you with your financial management needs – whether that be budgeting, estate planning, investing or retirement preparation. The cost is $140 per year, which includes three hours of planning services, access to their proprietary website and a 24-hour email help desk. This is a significant discount from the average cost of financial planning services in the U.S., which is $300 per hour.
There is an undeniable connection between financial wellness and mental health. Let MTA Benefits and its partners provide you with the services you need to improve both. Visit www.mtabenefits.com/financial for information about all of the programs mentioned in this article.
