The definition of ‘financial wellbeing’ is different for everyone. Of course, there are things that can be measured, such as your income or your superannuation balance, but what’s just as important is how you feel about your finances.

 

For me, financial wellbeing being means having peace of mind when it comes to my money – both now and in the future. It means I have a plan in place, so I don’t worry day to day, and I sleep easy at night. In the long term, it means I can be excited about the future and the time I’ll have to spend with friends and loved ones.

 

It's important to recognise that your financial wellbeing can also have a massive impact on your mental and physical wellbeing. When we’re not stressed or losing sleep over money troubles, we can have better relationships and we're more likely to make good decisions, such as eating right and exercising regularly. It’s so much more than money.

2023 has already been a challenging year for many Australians, with things like inflation, the rental crisis and rising interest rates affecting the cost of living across the country. But the most fundamental rule of finance – don’t spend more than you earn – remains the same, regardless of the economic climate. 

 

This may seem difficult at times, but it is possible, if you take the time to truly understand your cash flow. If you haven’t set your limits accurately from the start, you can easily underestimate how much money you're going to need for those ‘extra’ things that always pop up – and that’s when you’ll end up overspending.

 

‘Budgeting’ is often seen as a dirty word, but a budget isn't about what you can't do, it's about what you can do. Once you've got a budget in place and you've set aside a certain amount each week or each month, that frees you up to spend money on the things you enjoy.

Financial planning experts may offer many different tips, but we all agree if you get the following seven things done, you’re well on the way to having a strong financial position.

 

Have an intimate understanding of what you spend money on, so you can make sure you spend less than you earn. Once you’ve established how much surplus income you have the really important decision you have is how to split this between enjoying life today but also putting money towards building wealth to take care of future you.

 

For most people, their superannuation will be their biggest asset outside the home, and in many cases the biggest asset that is able to generate an income. Make sure you are with a strong performing fund, not paying unnecessary fees and invested in a way you feel comfortable with.

 

No one likes paying tax, but there may be ways you can reduce the amount you pay. Speak to a financial planner about how you might save on tax, while also building your wealth.

 

As we get older, we learn that life isn’t always fair. Having a protection plan in place will not only provide daily peace of mind, but also help you to manage if something unforeseen does occur.

 

Your future self will thank you for having a solid financial plan in place, but it can be hard to overhaul your finances in one go. Start with small adjustments to your spending and saving, find out what works for you, then work your way up.

 

Call it rainy day savings, an emergency fund – whatever you like. Setting aside some money that you can only access when you really need to will not only help you out in a pickle, it also provides you with an emotional safety net.      

 

Life doesn’t always follow a script, and we need to be prepared. Regular updates to your financial plan are key to making sure your financial wellbeing is still solid as your goals and life circumstances change – especially in this economy.

You can benefit from financial advice at any time in life – but the earlier you can set yourself up to start building wealth, the better. You can start today with something small, but the most important thing is taking the first step.

 

Our financial position changes all the time due to the twists and turns of life, so it’s critical to have regular financial ‘health checks’ to make sure you remain on track.

Your first meeting with an AIA Financial Planner is an obligation-free discussion, so we can learn all about what’s important to you. Like all types of goal setting and planning, it’s best to start with your ‘why’. Then, you’ll be able to see what you need to do to protect your (and your family’s) physical, mental and financial wellbeing.

 

Moving forward, your Planner can help you with strategies and products like superannuation, insurance and investments to help you achieve your goals and meet your needs. They are experts – backed by more experts – so they will do the research, and of course take care of all the paperwork, to ensure everything is implemented exactly as intended. 

 

What makes AIA different from other financial advisers is that we understand the close relationship that financial wellbeing has with your mental and physical wellbeing. And with your financial wellbeing in good shape, you’ll be much better equipped to tackle other areas of your life. What are you waiting for? Find out how easy it is to get advice - How it works | AIA Australia