Building Financial Confidence To Achieve Financial Well-Being
- Nov 30, 2022
- 5 min read
Updated: Oct 3, 2023
Written by: Tracey Sofra, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Most of us are aware of what it takes to maintain a healthy lifestyle. We do all of the things that we know are good for us, like eating a balanced diet, getting plenty of exercise, and sleeping for at least eight hours. But have you ever thought about what it takes to achieve financial well-being? What exactly is it and what financial well-being tips should you apply to improve your financial health?
Well, financial well-being is the measure of how financially fit and healthy you are, and it’s different for everyone. There’s no set number that, once you reach it, means you’ve become financially “well.” Instead, it means something different for everyone. Do you have enough money to meet your needs? Do you have the freedom to make the choices you want in order to enjoy your life? These are the kinds of things that measure a person’s well-being when it comes to their finances.
So, let’s dive further into some simple financial well-being tips you can start using today. But first, we'll go over what it is!
What is financial well-being?
Financial well-being focuses on how you feel about money and the impact that personal finances have on your overall well-being. More than just earning an income, financial well-being is about having financial security and the freedom to make choices. When you reach financial well-being, it means you have a certain level of security and enough money to meet your needs.
Feeling confident and empowered about your money is summed up as:
Having the ability to meet your expenses and have money left over.
Feeling and acting in control of your finances.
Being financially secure and not needing to worry about money all the time.
During the course of your lifetime, your financial well-being will vary as you encounter major life events such as moving out of home, getting married, having a baby, changing jobs, or retiring. Unexpected financial events can also have a big impact on your financial well-being.
Why is financial well-being so important?
Before we dive into our amazing list of financial well-being tips, let's talk about why achieving a sense of well-being with your finances is important. Just like your mental and physical health are important to living your life to the fullest, so is achieving well-being with your finances.
Some of the key benefits of being financially well and healthy include:
1. The ability to pursue your dreams
Financial well-being allows you to live life to the fullest and go after your dreams and goals. With a safety net, it’s easier to go after what you truly want in life. Knowing that you have something to fall back on if you fail will allow you to pursue opportunities you might otherwise have passed up.
2. It helps lower your stress levels
Financial well-being lets you live a life with lower levels of stress. In an employee survey by PWC, they found that stress due to financial matters was the top cause of stress for their employees and a major distraction at work. While this was just one company, it is a snapshot of how many people in this country feel about their finances: stress-inducing. When your financial well-being is high, however, these money worries and stress levels go way down.
3. It gives you the means to deal with emergencies
Lastly, financial well-being gives you the ability to tackle any financial problems or emergencies that come your way. This, in turn, can both reduce your stress levels and keep you on track to reaching your financial goals, so it’s a win all around.
How can I improve my finances?
Developing good financial habits will help you improve your financial health over time. That includes:
Having a budget or spending plan.
Making regular cash savings.
Building an emergency fund of at least six months of living expenses.
Paying down debt and maintaining a good credit rating.
Having adequate insurance.
Building up enough superannuation to retire comfortably.
Much like your physical and mental health, your financial health needs regular check-ups to stay in good condition. It’s really easy to conduct your own, or you can find a financial planning professional to help you.
How can a financial planner help?
A financial planner is able to support your changing needs at every stage of life. Having the right financial planner on your team can help you navigate life’s ups and downs. For example, in your twenties and thirties, a financial planner can help you save, invest and plan for a family. They can help you consolidate and protect your wealth into your forties and prepare for retirement in your 50s, 60s, and 70s.
When you go to see financial planning professional, they’ll look at your overall financial well-being and develop a plan tailored to your circumstances. Financial planning should be an ongoing relationship, not just a one-off meeting. So, look for someone that you feel comfortable with and can work with long-term.
There is really no wrong or right time to seek advice from a financial planner. The earlier you get started, the more time you have to benefit from their advice.
Taking the time to focus on your overall financial health and well-being has a range of positive flow-on effects. Feeling financially secure brings peace of mind, allows you to enjoy your leisure time and fun activities, and improves your overall quality of life. Financial well-being is one aspect of your health that should never be overlooked. It’s worth it to put the time into figuring out what it means to you. That way, you can live a life with less stress and more freedom to do whatever you dream of doing, no matter what comes your way.
Remember to keep expanding your knowledge of personal finance and inquire about financial well-being programs. Following these simple tips will help you improve and maintain your well-being. I'm Tracey Sofra and I believe women should take control of their money and create the financial independence they deserve to live a life of choice. If you are ready to take the next step in your journey to living a life of choice, take the Financial Confidence Quiz and find out how you score to move forward in your financial life.
Tracey Sofra is Australia’s leading Financial Advisor specialising in Women’s Financial Confidence. As a Business Leader, Mentor, Financial Advisor, Author, Speaker, and Mum, for over three decades Tracey has shared her proven method for shifting mindsets and the limits to financial success for thousands of women. Her passion around financial freedom is infectious leaving you inspired to challenge the status quo, build confidence and create change. To enquire about her working with you or your organisation please contact us at info@wowwomen.com.au
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Tracey Sofra, Executive Contributor Brainz Magazine
Tracey Sofra, is Australia’s leading Financial Advisor specialising in Women’s Financial Confidence. As a Business Leader, Mentor, Financial Advisor, Author, Speaker and Mum, for over three decades Tracey has shared her proven method for shifting mindsets and the limits to financial success for thousands of women. Her passion around financial freedom is infectious leaving you inspired to challenge the status quo, build confidence and create change. Tracey is dedicated to Investing in Women's Empowerment across the globe as part of a greater social impact across the UN Sustainability Goals.
