Mortgage Choice's recent study entitled The Evolving Great Australian Dream 2018 dished up some worrying findings. One in four (26%) Australians say they worry about money each week - 23% worry every day. Over half of us (54%) worry about how our family would cope if something happened to us.
These are challenging issues. But they are not without solutions.
Good cash management - a foundation of financial wellbeing
It's easy to assume our money problems would be solved if we earned more money. But the key to greater financial success is making good use of what you have.
The vast majority of Australians simply don't know what their monthly expenses are1. And while there is a wealth of apps and budgeting tools available for little or no cost, only 28% of people use them2.
That's probably because cash management can be a little like a fitness regime. It can be hard to stay motivated, and it's easy to stray back into bad habits. This is where a financial adviser can provide valuable support, taking on the role of a personal trainer to show you what needs to be done to get on top - and stay on top, of your cash management.
It’s always a lot easier to set goals for your cash, stick to a budget, and monitor your progress towards personal targets, when you have a money mentor to guide and encourage you.
Our cash flow coaching system can help you better understand where your money really goes, and identify ways to plug spending gaps. In our experience, the benefits of cash flow coaching go beyond improved financial wellbeing. With less stress over money matters, physical and mental health can enjoy an uptick also.
Protect your income
Good cash management matters, but bills don’t stop rolling in even if your income comes to a grinding halt.
If illness or injury forced you to take an extended break from work, regular living costs would quickly eat their way through even a substantial pool of personal savings. However, you can protect yourself and your family against the financial hardship this can bring.
Income protection insurance keeps a regular flow of cash coming into your household if you can no longer work because of illness or injury. Even better, the premiums are normally tax deductible, which helps to reduce the cost.
The crazy thing is, only one-third of Australians have income protection insurance in place3. This is despite the fact that our ability to earn an income is likely to be the single biggest asset we will ever own. Yet 83% of us insure our car4 – and we don’t think twice about renewing cover each year!
The bottom line is, you don’t have to be weighed down by money worries. Talk to your local Mortgage Choice financial adviser about cash management coaching to help you make the most of your money. They can also explain how to back this up with income protection insurance so that you and your family can enjoy life free from concerns about how you’ll cope financially – no matter what happens.
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