Financial wellbeing sounds dreamy – but really shouldn't

Financial wellbeing is the sense of security and ease that comes with knowing you can pay your bills today, deal with the unexpected and that you’re on track for a healthy financial future. Sounds dreamy, no?

- TALIA LODERICK

Financial wellbeing matters because it’s hard to think clearly and make decisions that serve you when you’re living under a cloud of money worries.

I don’t need to tell you that these are uncertain times – globally, politically, economically. If you’re overwhelmed and living with money worries, it’s understandable.

Money is emotional

Money is emotional. Our emotions, such as fear, despair, guilt, shame, sadness and anger, influence how we behave with money.

Managing your money in uncertain times is about understanding your relationship with money and managing your behaviour accordingly.

While it’s not helpful to act out of fear and panic, it’s also not helpful to procrastinate and not make a decision at all.

Start by checking in with yourself. How are you feeling about your financial situation? What does financial security look like for you now, in the next six months, in a year?

Financial review

Then, review where you are now. Your income, your outgoings, your savings, your investments.

Once you know where you are, you can make an informed decision about what, if anything, needs to change to increase your financial security and give you peace of mind.

Set financial goals. Get clear on what you want to achieve, and why, and take action.

Focus on what’s within your control. Shopping around for the best interest rates on savings and mortgages? Within your control. Setting interest rates? Not so much.

Managing behaviour