Providence Health Plan’s Chief Financial Officer Lina Saadzoi Shares 5 Things You Should do to Increase Financial Health
05 August 2024
Lina Saadzoi, Chief Financial Officer of Providence Health Plan (PHP), recently spoke with Authority Magazine's Vanessa Morcom in a series titled “Women Leading The Finance Industry.” Lina shared the 5 things she recommends people should do to increase their financial health.
Read her recommendations and some key takeaways from the interview below:
Don’t go into debt
“Always ask yourself, is this a need or a want? If it is a need, save up for it.”
Lina says it’s common for people to purchase things they don’t have the money for on a credit card or with a loan, but she instead recommends getting into the habit of saving cash to pay for purchases.
Start saving early in life
“Get into the habit of putting away a fixed percentage of your paycheck.”
By learning how to invest in options such as a mutual fund, an index fund, and stocks, you can have your money work for you. Start investing or putting money aside as soon as you’re able. The longer your money can work for you, the more powerful compound earnings become.
Invest in your retirement early
“The earlier you save, the more you compound interest, and the bigger your nest egg will be by the time you’re ready to retire.”
Lina says that many people think it’s too soon to think about retirement when we’re in our 20s and 30s, but getting an early start is crucial to setting up your financial future.
Create a budget
"A budget brings you awareness of where your money goes, and how much income you’re bringing in — it also creates discipline around making sure that you live below your means.”
When you set up your budget, it becomes much easier to see whether your expenses are more than your income. If they are, it’s important to see an overview of everything so you can identify expenses that can be reduced.
Stay within the spending limits of your prior income
“When your income is increased, try to stay within the spending limits of your prior income.”
Lina says that when people climb the career ladder and get a raise or promotion, they also tend to have what she call a ‘lifestyle creep’, meaning they spend that extra money on a bigger house, a bigger car, or something else. She recommends taking that extra money and investing it, putting more money into retirement, and saving for those big purchases. While she acknowledged that it may take a lot of discipline and control, it’s an important practice that over time will become a habit.
You can read the full article on “Women Leading The Finance Industry” here.
