Five top tips for financial wellbeing

In Australia, we live in one of the richest economies on Earth, yet many of us are stressed about money. And surprisingly, it’s not just those who earn a little, but also those who earn a lot. Financial stress can have an enormous impact on the quality of our mental health, wellbeing and relationships.

It’s hard to know how to begin to tackle money issues, but the good news is that there is help and there is hope!

The Salvation Army Moneycare has a range of simple tips, resources, as well as free financial counselling available. During this Anti-Poverty Week (15-21 October), take the opportunity to empower your financial wellbeing with these valuable tips.

You can start on the path to financial wellbeing today!

Tip 1: Ponder and participate in positives

A good life is so much more than ‘things,’ and it is important to think about what you are good at or what brings you joy. For example, make a list titled, “What I value about myself.” Here are some examples, but of course, write a personal list to celebrate your uniqueness!

• Resilience
• Sense of humour
• Creativity
• Ability to ask for help
• Relationships
• Cooking skills

At the same time, remembering life is much more than ‘things,’ you could also make a list of fun and affordable things to do locally. A connected life is important to your mental and emotional wellbeing. Because community and connection count!

Ideas for budget-friendly and easy positive connection may include:

• Parkrun (run, walk or support as a volunteer)
• Activities at your local library
• Events at your local Salvos or other church
• Neighbourhood centre events
• Community garden, community shed, senior’s group, playgroup or other community activities
• A walk or bring-your-own food picnic with friends or family
• A movie night at home with family or friends
• Volunteer events

Tip 2: Discern decision drivers

Your past experiences with money and many other factors can affect how you manage your money today. Your ‘money story’ is made up of your mindsets and beliefs, personal values, personal experiences, learned skills and habits, family history, current circumstances, and more.

To get on top of your finances, it is vitally important to understand how your personal money story influences your decisions around such things as spending and saving.

For example, think about how your financial mindset was formed and how it affects your current decisions. A fixed mindset might say, “I’ve never been any good at saving money, so there’s no way I’ll be able to afford to travel to my friend’s wedding next year.”

But a growth mindset — an understanding and an attitude that all humans have the ability to change and that past mistakes help us grow — might say, “I haven’t saved well in the past, but today I’m going to set up a direct debit from my pay into a separate account, so that I can be there at my friend’s special day.”

Tip 3: Formulate a funds framework

A budget is a money plan to help track what money comes in and what goes out. It is key to understanding your financial resources and, while it takes time, the results are totally worthwhile.

Here are six reasons a good money plan is worth it!

A money plan:

• Shows where money is going
• Reduces stress levels
• Increases confidence with money
• Prepares you for emergencies
• Helps you focus on values and priorities
• Assists you to achieve your financial goals

Tip 4: See all saving as sensational!

Saving money takes patience, and it’s important to understand that slow and steady saving is still sensational!

In all honesty, saving doesn’t come naturally for many of us. But it is so important because saving is incredibly beneficial to all areas of life. It helps reduce stress, restores confidence, and helps you regain a sense of control.

Saving can also be a matter of rethinking your priorities, rather than earning more. For example, cancelling a gym subscription and saving that money but scheduling regular exercise outdoors with a friend.

Some golden rules for saving include:

• Make it automatic: With an automatic transfer into a dedicated savings account
• Keep it separate: Whatever system, find a way to restrict access to savings (unless really needed)
• Chart progress: Keep a record where it can be seen every day (maybe a mirror, fridge, car or computer screen)
• Allow rewards: Create rewards that can be enjoyed after reaching a savings goal and also some rewards along the way
• Set up for success: Limit any exposure to ads, emails, social media, shopping online and shopping centres

Tip 5: Deal with debt and don’t delay

If you are struggling with debt, please know you are not alone! So many Australians are struggling with debt, and credit schemes all too often work to attract and then entrap.

Sadly, shame and fear can stop us from tackling debt, but for your financial freedom and peace of mind, it is essential to start clearing debt (and being very careful not to take on more).

The reality is that debt can impact your relationships, health, feelings of self-worth, and stress levels. Debt repayment can feel overwhelming, but avoiding dealing with debt such as credit cards, personal loans, buy now pay later, utilities, fines, school fees, and unpaid taxes, only compounds problems and charges.

Clearing debts step-by-step

While debt may seem like an overwhelming problem, there are things you can do.

At Moneycare, we regularly see people who have been able to become debt-free following our tips. During this Anti-Poverty Week, take control of your financial future with the guidance of The Salvation Army Moneycare.

You can call us today to organise a free, confidential financial counselling session:
Call 1800 722 363

And the other great news is — you do have rights. There are laws to protect you when you sign for a loan or owe money.

It is important to let the organisations you owe money to know your situation if you’re having difficulty with repayments. Some will have a hardship team that can discuss the possibility of an affordable repayment program.

An independent ombudsman is also there to help — if the company is not helpful — usually the Australian Financial Complaints Authority (AFCA).