Financial Wellness

To have a strong sense of wellness all aspects of the Wellness Wheel must be balanced.

Another area where imbalance is a regular occurrence is the Financial Wellness segment.

Financial Wellness is an intricate balance of spiritual, mental and physical aspects of money.

How would you feel if you woke up one morning and discovered you had two million dollars (AUD) invested and two hundred thousand dollars (AUD) in your general bank account, your investment is returning five percent per year ($100,000 AUD) and you have no debt you have your home, car, boat and a few other toys you have acquired over the years.

How do you feel?

I would say as an average person living in today’s society, you would feel quite at ease.  Financial Wellness has been achieved or has it.  You decide to upgrade your boat and home.  You spend your $200,000 immediately doing this.  You withdraw another couple of hundred thousand dollars from your investment account, there is plenty left for investing, you purchase a holiday unit in a luxurious resort.  Whoops need another three hundred thousand, no problems.   Newsflash states another global financial crisis has occurred even worse than the last one.  Your recent purchases have significantly decreased in value and your investment took a pounding and is down to three hundred thousand dollars.

How did this happen???

How are you feeling know?

Once again Financial Wellness is a balance of mental, spiritual and physical aspect of money.  Money is a pawn and unless it is played correctly it will never be anymore than a misplayed piece on a chess board.
To achieve Financial Wellness these are the rules I have learnt over the years.

  1. Firstly you need to become accountable for your financial position so your need to write down on a piece of paper in two columns.  Income and debts.  Write down on the left all your debts, what type of debt – credit card, store card, bank loan etc and then write down your gross income in the right column.  Keep this piece of paper.
  2. We all pay some form of tax to the government from our income.  We never miss it as we never see it unless in the form of a refund at the end of the financial year.  Well there is now a new tax but instead of tax it is called wellness and it is a compulsory wellness that needs to be paid.  It is called your Personal Wellness. This Personal Wellness is ten percent of your gross income, (income before government tax), it is put into an account that you can only access online – no card attached so you can forget about it.
  3. Do a budget.  I have made the budget I use through excel just leave a comment & I will forward you the template.  A budget is essential so please enter everything you pay onto the spreadsheet.
  4. From your piece of paper write down all your debts, time frame, percentage charged and amount owed.  Arrange them in order from highest interest to lowest interest.  Make payments weekly if possible; if not definitely fortnightly and with the debt at number one pay the minimum plus extra, (the best extra amount to pay if possible is the amount of interest you were charged last month). The most common highest interest debts are credit cards and unsecured loans so aim for these first. Keep chipping away and as you pay a debt start on the next one on the list with the same strategy of an extra payment plus the minimum amount you were paying for the paid debt.   It takes a lot of self discipline; once you start you will be surprised how quickly you can gain control over your debt.  By the time you have paid out your first debt your motivation will just propel you forward as you are starting to see the light at the end of the tunnel.  This is your Financial Wellness being balanced.
  5. Finally treat yourself, set a goal and include an amount to be put away for this treat in your budget.   It may be a well deserved body massage, a weekend away make it something special so that only good feelings are associated with it and time it to coincide with your first debt being paid out.  This is like a celebration and instead of focusing on the debt you are paying, think only of the treat that awaits you.  It is just a matter of changing the way you look at things.  Look for good and greatness and there will be good and greatness.

This is an introduction to Financial Wellness and will get you started.  There is so much more to learn to achieve Financial Wellness; investing, having a will, having a SMSF and having a plan for retirement to provide you with a lifestyle that will add years to your life as well as life to your years.

So please join our forum and share your experiences and learn from other how to achieve overall Wellness with a life of abundance and fulfillment

“Your Are Your Thoughts”

Kaz