9 tips to improve your financial wellbeing.

According to Australian research reports [1] & [2], having control over our money affects how we feel about life and our happiness. Feeling in control of our finances reduces stress and frees us to focus on things that are important to us; relationships, work and a sense of purpose. So what is financial wellbeing and how can you improve it?

Financial wellbeing is a feeling of having control over your money - that you can meet your financial obligations comfortably and have some money leftover, and that you can maintain this and prepare for the future.

Here are nine tips to help you improve your financial well-being.

  1. Spend less than you earn
    It’s a fact of life, we must spend LESS than we earn to get ahead and save for the things we need and our future. Don’t forget that spending includes your debt repayments.
  2. Create a budget that suits your lifestyle
    Have a good look at where you are spending your money, and set a realistic budget based on your essentials, bills and the things that are really important to you.
  3. Pay off you credit card by the due date
    Credit card debt can get out of hand quickly. If you don't pay off the outstanding balance when it’s due, you’ll end up paying more for things with high interest rates.
  4. Tackle your debt and pay it down faster
    Consider consolidating personal debts into a single repayment. Your mortgage broker may be able to refinance your home loan so you can bundle debt repayments and pay a lower rate of interest as well.
  5. Have a savings plan
    Set aside at least 10% of your salary into a separate savings account and build an emergency fund (aim to have three to six months worth of expenses to cover emergencies). Then keep saving for your longer terms goals such as holidays.
  6. Make sure your super is working for you
    Take action on your super fund and make sure it’s performing towards your goals. Understand your investments, insurances, and nominate the beneficiaries of your super.
  7. Grow your money
    If you have spare money after contributing to super and your savings account, then you may want to think about investing. A financial adviser can help you with suitable options.
  8. Review your personal protection insurances
    It’s important to have enough insurance to protect yourself, your family and income in case of death, disability, injury or illness. Make sure you’re covered.
  9. Update your will to take care of your loved ones
    We don’t like to think about it. But having a will and an estate plan protects where your wealth goes when you die. Especially important if you have dependents.

We hope you find these tips helpful. If you need help to work towards your financial goals, talk to your adviser.

[1] Centre for Social Impact 2017 Exploring Financial Wellbeing in the Australian Context Final Report

[2] Australian Unity What Makes Us Happy Report?

Disclaimer 2019: This document has been created by Wealth Market Pty Ltd (ABN 56 128 350 112, AFSL No. 482898). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. This information has been prepared without taking account of your personal objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your specific objectives, financial situation and needs.