With the pandemic in full force, it’s natural that we may worry about the future and the impact on household finances. Perhaps it’s more important than ever to think about your financial wellbeing.
Financial wellbeing is about being secure and in control. It’s knowing that you can pay the bills today, deal with the unexpected tomorrow, and ensure you’re on track for a healthy financial future. Poor financial wellbeing has knock on effects to our mental health, physical health and our relationships.
Here are 5 top tips to help you stay on top of your wellbeing.
1. Use your phone to save you $’s.
Budgeting apps are a fantastic way to keep all of your financial information in one place, to access at one time – and evidence suggests they have a positive impact on users saving more money each month too!
Whilst we’re all likely to be spending less on going out for a while, it’s worth knowing that research has found that users of budgeting apps significantly reduce their spending on dining out, as well as their food shops and petrol costs, within the first six months.
2. Face up to your debts
Getting on top of your debts is vital to your financial and mental wellbeing. Often the hardest hurdle is the first and, whilst it may not be easy and quick, there is usually a route out. The earlier you deal with your debts, the easier they are to manage.
3. Check in on your emergency fund
An emergency fund is a financial safety net for those unexpected costs that hit each of us at some stage, irrelevant of how lucky or unlucky we are! If the past year brought you a broken boiler or costly car repairs, make sure you get your emergency fund back to where you started before you start thinking about spending online or buying the latest iPhone.
Having an emergency fund takes away the worry surrounding unexpected costs and prevents you from getting into debt at every financial bump in the road.
4. Earn interest on interest by making saving a regular habit
Getting into a regular savings habit is more important than how much you put away – you’ll be surprised how quickly a few dollars each month builds up! As your savings build up, they’ll grow faster– even if you’re only paying in the same amount each month. This is because each time the interest earned on your money is paid into your account it starts earning interest too.
This interest-on interest is called compound interest, and over the longer term it makes a big difference to how much your savings are worth.
5. Speak to a wealth manager about your financial wellbeing
The current global situation highlights that life seldom progresses in the way we expect, and as our situation changes, our financial plans will change too.
A wealth manager can take a holistic view of your financial situation, recommending realistic goals and advising you on the products you need. They’ll also be able to help you keep on track to meet your goals.
Having the right wealth, insurance and retirement planning for you has real mental and financial benefit. Knowing your family are protected in the event of ill health or death, and that you are prepared for retirement can improve many facets of your life.
In an increasingly complex and competitive world, expert financial advice is key to securing your future. So, contact us today for a free financial planning consultation and get all your financial affairs in order.
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