Easing your financial worries and increasing your wellbeing

In the hustle and bustle of daily life, financial matters often lurk in the background, causing stress and anxiety for many New Zealanders. Recent studies show that 70% of Kiwis now frequently worry about their finances – the highest levels since 2020.  Whether it's managing bills, grappling with debt, or worrying about the future, financial challenges can take a significant toll on our overall wellbeing. However, by taking proactive steps to understand and manage our finances, we can alleviate these burdens and pave the way towards greater peace of mind and security. 

Understanding the impact

Financial stress is more than just a nuisance – it can have profound effects on our mental and physical health. Studies have shown that 57% of those surveyed believe the increase in the cost of living had a negative impact on their mental health. Additionally, 46% of Kiwis said financial stress is also impacting their physical health, while 34% said it impacted their work productivity. These are worrying statistics that can potentially lead to any number of issues, including sleepless nights, strained relationships, and may even contribute to conditions like depression and anxiety. In New Zealand, where the cost of living continues to rise, many individuals and families may find themselves grappling with financial uncertainty, exacerbating these stressors. 

Taking control through budgeting

One of the most powerful tools for managing finances is budgeting. By creating a budget, you gain a clear understanding of your income and expenses, allowing you to make informed decisions about where your money goes. Budgeting helps you prioritise spending, identify areas where you can save, and ultimately, regain control over your financial situation. If you don’t have a budget and you’re not sure where to start, visit the sorted website, where the Government has provided guidance and templates that you can use.  

Navigating debt

Debt can be a major source of stress, but it doesn’t have to be insurmountable. Understanding your debt – its terms, interest rates and repayment options – is the first step towards tackling it. From there, you can explore strategies such as debt consolidation or refinancing to make repayments more manageable. Seeking help from your lenders or debt counsellors can provide valuable insights and guidance on navigating this journey. The sorted website also provides a guide to tackling debt which may be of assistance.  

Setting financial goals

Setting clear financial goals gives you something to work towards and helps you stay motivated on your journey to financial wellbeing. Whether it's saving for a home, paying down the mortgage or getting out of debt, having specific objectives can guide your financial decisions and keep you focused on the bigger picture. Put simply, make your goals SMART – specific, measurable, achievable, relevant and timely.  

Protecting your future

Life is unpredictable with unexpected events – from illness to natural disasters – that can derail even the best-laid financial plans. That's why it's important to consider personal insurance to protect yourself and your loved ones. Whether it's health insurance, life insurance, or income protection, having the right coverage in place can provide a safety net during challenging times.

The role of financial advice

Seeking advice from financial professionals can be a game-changer when it comes to achieving financial wellbeing. Research has shown that receiving advice is correlated with improved overall wellbeing, as it helps individuals make informed decisions, navigate complex financial situations, and plan for the future with confidence.  Further, this research demonstrates the ‘better behaviours’ advised versus non-advised customers exhibit.  

For example,
-    64% of Kiwis who are advised have a documented budget, versus 43% who are unadvised
-    70% of Kiwis who are advised reviewed their KiwiSaver annually, versus 49% who are unadvised
-    61% of Kiwis who are advised understand risk and reward drivers, diversification and ongoing reviews and have investments beyond property and KiwiSaver, versus 35% who are unadvised.

Financial advisers can provide personalised guidance, tailored to your unique circumstances, helping you identify opportunities, mitigate risks and optimise your financial strategy. By partnering with an adviser, you can offload the burden of financial worries, gain greater control, and set yourself on the path towards a brighter financial future.

Taking proactive steps

Ultimately, achieving financial wellbeing requires a proactive approach. By taking the time to understand your financial situation, educate yourself on money management principles, and seeking professional advice when needed, you can ease the burden of financial worries and build a foundation for long-term security and prosperity.

While financial challenges may seem daunting, they may not need to be. By taking control of your finances, setting clear goals, protecting yourself and your family, and seeking guidance when needed, you can alleviate stress, regain confidence and achieve greater peace of mind on your financial journey. Remember, the key is to take proactive steps today for a brighter tomorrow.