One in five employees in Australia are stressed about their finances, according to AMP’s 2018 Financial Wellness report. Additionally, many people find that their personal wellbeing suffers due to the state of their money, as worry and stress often result in issues such as poor sleep.
Your relationship with money is give-and-take. In order for your money to keep you healthy, you need to stay on top of your financial well being. Let’s explore a few ways you can do that.
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1. Create regular check-ins with your finances
Simply touching base regularly with your money can do wonders for your finances. It ensures that you’re aware of what’s coming in and going out, which in turn assists in making better financial decisions.
For example, you might think that you only occasionally splash out for a coffee, but through reviewing your spending discover that it’s an almost daily occurrence. Seeing how this small spend stacks up and being aware of it can help you in breaking the habit and directing that money towards achieving your goals.
Create a regular health check for your finances to help improve your awareness when it comes to your money.
2. Automate your savings
Part of breaking a habit is making it harder to proceed with it. If you have money in your account, you only rely on your self-will to prevent you from spending it. By organising an automatic payment to occur every time you get paid which takes a set amount of money and sends it to savings, you add another step into the process.
Instead of simply having the money in your account to spend, you now need to log into your bank and transfer an amount back into your transactional account. This extra step causes you to actively think about the decision to spend more, rather than getting caught up in the moment. On top of this, it makes saving simple, taking the work out of doing so.
3. Consider consolidating your debts
Rolling multiple smaller debts into one larger loan can often provide you with an easier way of managing your finances, as well as potentially better interest rates. Another bonus is that having only one loan to maintain means fewer fees to worry about.
The important thing to consider when looking at this option is whether it will actually benefit you. Make sure that, overall, bundling your loans together is better for you financially.
4. Spend less than you earn
This may feel like an obvious piece of advice, but when considering your financial health and how you can improve it, you need to keep the thought in mind. Examine the money that’s coming and going from your accounts. If more is leaving than you’re bringing in, it’s time to take a serious look at your expenses.
Even if you’re only able to keep a small amount of your income in your account, it’s important not to feel discouraged. While increasing the gap between what you earn and spend is important, even a small bit set aside continuously adds up over time, allowing you to create a buffer for the future.
Make sure your money scales are tipping in the right direction when it comes to your income and expenditure.
5. Invest in advice
Knowing how to best improve your financial wellbeing isn’t something that comes naturally. It’s a learned skill. Additionally, effectively managing your money can consume a lot of time and effort. Similar to bringing in an electrician for helping you sort out a wiring issue, financial advice helps you get your feet on solid ground when it comes to money.
Investing in the right financial adviser can reap many rewards. They can provide you with proven methods for managing your money, help create budgets that actually work, assist in finding the best structures for your loans and guide you through the investment landscape.
Financial health is a vital part of your wellbeing. Make sure your money leaves you feeling good by getting in touch with an adviser from Invest Blue today.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.