May 01, 2014
When you think of being unwell it’s usually related to a medical issue.
But losing a sense of financial wellbeing can be drastic. Whether it’s through abuse of credit or an unforeseen financial crisis, such as a job loss or medical emergency, the result is similar. You will feel you will never recover.
The first step to inoculating yourself against financial disasters is to understand that financial wellbeing is simply not having lots of money.
Financial wellbeing is a holistic approach to controlling your money instead of allowing your money to control you.
It requires you to make educated and informed decisions about how to use credit wisely and investigate ways to save and invest money to plan for your future and retirement.
A major component is having appropriate back up strategies in place to safeguard yourself against uncertain and unexpected financial events outside of your control.
When these actions are taken you will achieve financial wellbeing and can pay your bills without stress or anxiety, even when an unexpected expense occurs.
Stressing about money affects more than just your financial wellbeing. It will negatively impact on you social, emotional and occupational wellbeing.
It’s important to learn how to maintain you financial wellbeing as well as all other areas of your life.
Take stock : Review your current finances and forgive yourself for any past mistakes. Before you can move forward, you need to know what you have to work with.
Create and live within a budget: Living to a budget doesn’t mean you are denying yourself things, it’s the opposite. It allows you to aim for what you really want instead of spending on impulse. Budgeting helps you save money to reach your financial goals.
Financial management : Ensure you become knowledgeable about different investment strategies across superannuation, investing in property and or shares. Seek advice from a suitably qualified firm and don’t just rely on what is available at a local bank. Ask for clients’ testimonials and check for authenticity and reliability.
Aquiring your home loan: Well over 43% of all new home loans in Australia are sourced by a broker. A broker is a trained consultant who is committed to industry best practise. Their service is free and a Mortgage Choice broker such as Julie Browne is paid the same commission regardless of the lender you choose. This means our service is unbiased and your home loan aligns to your needs and goals.
Have a backup plan : Keep emergency money on hand for an unexpected financial event. Emergency money coupled with appropriate insurances will ensure your financial wellbeing is sound and you are not left vulnerable. If a back up plan is not in place events such as losing your job, suffering a serious illness or experiencing an untimely death of a working loved one can have a dramatic negative effect on you and cherished family.
Maintaining financial wellbeing is a worthwhile goal that will give you peace of mind in all areas of your life.
Call Julie Browne for more tips and advise on 0421 206 543