THE SOCIO-ECONOMIC FACTORS, CURRENT FINANCIAL STATUS, FINANCIAL MANAGEMENT PRACTICES AND THE FUTURE FINANCIAL WELL-BEING AMONG GOVERNMENT EMPLOYEES

Abstract

Every individual wants to be financially adequate to support their needs and wants. Having a stable income is usually the indicator as to how well off a person is. If an unforeseen event is to happen which will result in loss of income, an individual will have to depend on other resources to ensure the support of their needs which will last either a few months or can last for several years, depending on how financially fit they are. However, income is not the only important factor to ensure a better financial state. Overall subjective well-being is important as it refers to how people evaluate their lives and includes variables such as life and marital satisfaction, lack of depression and anxiety and positive moods and emotions (Diener, Suh, & Oishis, 1998). There are many dimensions of well-being such as job, finance, house, health, leisure and environmental satisfaction according to Flecther and Lorenz (1985).
Recent statistics in 2010 by the Economic Planning Unit (EPU) show that at least half of the household income were used for household expenditures since 1995 to 2009. Therefore, the ratio between income and expenses hasn’t changed. Consistent with Porter and Garman’s (1993) findings who found that even though income has increased, 30.8 percent of their respondents never seem to get ahead. This shows that even if income increases, expenditure do not decrease. Furthermore, a higher income does not necessarily ensure a better financial well-being.