How to improve your financial wellness

When we think of wellbeing, we think of health and fitness, or perhaps our state of mind, but our finances often don’t get a look in. Nevertheless, our financial wellbeing is an important part of our overall wellness, because our sense of security, our state of mind and our ability to plan for the future can all be impacted by our finances.

Disclaimer: The information contained in this article is of a general nature only and should not be taken as financial or legal advice on any of the topics discussed. Always consult a financial adviser before making any investment decisions.

So how can you improve your financial wellness? We’ve put together some tips to help you get started. 

Get real about your finances

Putting our head in the sand when it comes to finances can be tempting, especially if we prefer to swipe and hope for the best! But getting real about where we’re at - the good, the bad and the ugly - is truly the first step on the financial wellness journey. 

Set motivating goals

One of the best hacks for staying on track is to set goals that really motivate you. Pro tip - don’t mistake the means for the goal itself. A goal should excite you and be something you really want in life. For example, “Pay off my credit card” vs “Pay off my credit card so I can start saving for a home deposit”.  

Do an income vs spending review

This can be an eye-opening step to take, but before we can make positive changes, we need to know what our income is and how much of it we’re spending on what. Go through your last three months’ account statements and identify all your incoming vs outgoing transactions. Are you living within your means? 

Create a budget that works for you

Break your budget into three categories - money coming in, money going out on mandatory expenses (like rent, mortgage, utilities) and what’s left over for other spending - like savings, entertainment, eating out or buying clothes. Starting to get an idea of where you could cut back on spending?

Look for spending leaks

Spending leaks are those ‘invisible’, often smaller amounts that we spend without realising just how much they amount to. Think Netflix and Spotify subscriptions, coffees, Uber eats or unused gym memberships. Could you do without some of these if it meant achieving a life goal? 

Get the best deal 

Do your homework and start saving! In a competitive marketplace you can literally save hundreds of dollars or more by shopping around for the best deal on things like utilities, internet, insurance and more. 

Start a savings habit

Once you’ve identified ways to cut back on spending, it’s time to kick-start a regular savings habit by putting aside a set amount of money each week or month. Set up an automatic transfer from the account your salary is paid into to a higher interest savings account. At a minimum, you should aim to build around $4000 in savings as a buffer for financial emergencies like sick pets or car repairs.

Get smart with debt 

There are some simple things we can all do to manage debt better, like paying down credit cards and reducing credit limits to a minimum. Make sure you only buy what you can afford to pay for upfront or look at consolidating your debt by rolling it into a lower interest loan. 

Seek out professional advice

Don’t be afraid to seek professional advice on your journey to financial wellness. In the same way we see a doctor or personal trainer if we want to improve our health, it makes sense to consult a financial professional if we’re looking to boost our financial wellness.

How can we help?

Teachers Mutual Bank can help you earn bonus interest on savings, consolidate debt or take out a great, low interest home loan that’s designed for you. 

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