Flex your financial muscle: what is financial wellness and why is it important
We know that the wellness, self-care and health & fitness industries are big business. But what exactly do we know about our own financial wellness?
According to Gallup Inc - an American analytics and advisory company established in 1935 - financial wellness is one of five essential elements of well-being and is defined as "effectively managing your economic life ” https://www.gallup.com/workplace/237020/five-essential-elements.aspx
Sounds simple enough.
In real terms, the concept of financial wellness encompasses quite a few factors. Including:
- Managing your spending; ensuring you spend within your means.
- Saving for a rainy day; building an emergency fund.
- Planning for your future; for future purchases, investments or retirement.
- Being informed; having the resources and advice you need to make responsible and educated financial decisions.
If we break this down even further, to have financial wellness is to avoid the feeling of financial stress.
“Money worries are one of the main sources of stress in Australia, and can lead to relationship problems, depression or anxiety” HealthDirect.gov.au, an Australian Government-funded service, providing quality, approved health information and advice.
Making the decision to work on your financial fitness, just as you would your physical fitness, is the first step towards "effectively managing your economic life” which will ultimately help you avoid money worries and confusion. Now and into the future.
Where to start? Here are just a few HUB Advisory Group suggestions:
- Speak honestly with your partner about any financial concerns you have. Also, focus on the positives, and goals you want to achieve in the future. It is also a good exercise to discuss why a goal is important to you, as this will help prioritise your goals.
- Create a realistic personal budget and do your very best to stick to it. We have a template on our website to get you started.
- Seek advice from a trusted, professional source. This may include subscribing to publications or undertaking a financial health check with an experienced Financial Advisor. A Financial Advisor can assist with planning for your future.
Now is the perfect time to start flexing your financial muscle – it could very well be the best decision you’ve made for both your bank balance and your physical well-being.