WANT TIPS AND TRICKS TO HELP YOU MAKE THE MOST OF YOUR MONEY? SEARCH ONLINE FOR ANZ FINANCIAL WELLBEING.
They say money makes the world go around, but it can also make it feel like it is coming down on top of you.
Especially during times of managing debt, reduced income or a change in circumstances.
It can become especially stressful and it’s imperative to focus on your financial wellbeing, just like you would your physical and mental wellbeing.
But what is ‘financial wellbeing’?
Well, it is the extent to which a person is able to meet current commitments comfortably and have the financial resilience to maintain this into the future.
It recognises that our behaviour, attitude to money, resilience to change and sense of security are all impacted by our financial literacy (ANZ Financial Wellbeing Indicator, Elain Kempson).
So I thought I would share with you some simple and easy tips that I use to keep on top of my finances and reduce my anxiety about money.
Here’s what works for me:
Don’t be afraid to talk about money
This is key!
Being unsure about what your actual financial situation looks like is a sure-fire way to bring about even more anxiety.
Talking about it with your partner or a professional is a great start. As well as wrapping your head around your incomings and outgoings.
At home we regularly schedule some time to sit down and sift through our earnings and spending.
A great way to get a quick and easy overview of your Financial Wellbeing is by following the Financial Wellbeing Program with ANZ.
ANZ’s successful flagship financial education program, with six self-guided, self-paced steps that are aimed towards helping you improve your financial behaviours.
Available via their website, and completely free. It starts with a 12 question quiz to give you your current Financial Wellbeing score.
Become better educated about money
My granddad always taught me that we always have more to learn. And with the ever-changing nature of products, rates and offerings, it pays to keep up to date on the latest,
From debt, savings, investing and everything in between. I think it’s important to make sure no stone is unturned so I can make informed decisions for the future.
Speak with your providers and institutions about your situation and seek professional guidance on what is best for you.
Know your spending triggers
How often are you buying things because of what is happening around you? I know when I was younger I used to buy things to cheer me up. If I had a bad day, I would take myself shopping and buy a new outfit.
Or if I got paid I would “treat myself” with something. Almost like a little ‘high’ for working hard?!
There are lots of psychological triggers for people around their spending. You might be a sucker for a ‘sale’ or the sense of urgency some retailers put on promotions.
It is really good to work out what yours might be so you can fight the impulses. Allow yourself the ability to assess if you really need that purchase.
Automate Your Money
This is a big part of how I manage my money.
Once you’ve worked out your essential spends are and what your savings potential is? You can then set up your money to automatically go where it needs to be.
A great example of this method can be found in the ANZ Financial Wellbeing Program which helps you Organise Your Accounts. It will give you a simple formula for Needs, Wants & Goals.
By automating this process, you allocate your money before you spend it so you know what you have left to spend. I find doing this means I don’t see it and am less likely to waste that money.
We have always used our mortgage offset as our ‘goals’ bucket. Which is reducing the amount of interest we pay on our home. As well as acting as a long terms savings account.
I also have direct transfers set up for bills both weekly & fortnightly. I pay a small amount I have calculated from previous bills.
This means no bill shock when my utilities roll around and I’m not taking big sums of money from my savings.
I have them set up from my end so I have control over them, not the provider.
Don’t be afraid to ask for help
If you do get into financial hardship in any way, shape or form, it is always best to be upfront and tackle it before it becomes a bigger issue.
In Australia, we have a National Debt Helpline, which can provide you with free financial counselling.
Speak with all your creditors, utility providers and lenders, and find out what you can do with regards to managing and reducing debt.
They often have specific departments that deal with these situations and can find a solution to suit you.
It is also good to know your rights in these situations and make informed decisions.
During a time of national crisis, there are also a lot of different measures and assistance packages available.
The best thing to do is seek some professional advice, and again speak to your providers on the options available to you in this time.