As we age, we understand it’s important to look after our health and mental wellbeing, but it’s equally important to look after our financial wellbeing. What do we mean by financial wellbeing? The Money and Pensions Service explain it as ‘being financially resilient, confident and empowered’. Let’s take a look at those three criteria.
Someone who’s financially resilient feels they have enough money to support themselves, and their immediate family, both now and in the future. They will probably have a steady income, manageable debt, and a comfortable level of savings. They’re also likely to have taken precautions in case of adversity, for example by taking out insurance policies or making sure any investments are well spread.
Confidence comes from a feeling of security. Financially confident people feel secure and in control of how they handle their money. They don’t necessarily know everything there is to know about their finances, but they feel confident that they know where to get the answers. If you’re ever in doubt, just call your Murdoch adviser who’ll be able to help.
Being empowered allows you to feel confident about making decisions. Financially empowered people have educated themselves about their finances or taken advice when needed so that they can make the best decision in the circumstances. At Murdoch we run seminars on a regular basis about investment strategy and estate planning. Take a look at our website for details.
Why it’s important
There’s growing evidence of a correlation between financial wellbeing and mental wellbeing. Being under stress financially can affect your physical health and relationships, which in turn negatively impacts your mental health. Feeling financially secure means you have the money to enjoy yourself, support your family and look forward to retirement and later life. Being finally resilient will also help you cope with the practicalities of changes in your circumstances, such as bereavement, downsizing or moving in to care.
How to look after your financial wellbeing
You can look after your financial wellbeing by building financial resilience, financial confidence and becoming empowered with regards to your finances. You may already feel financially resilient if you have a regular income and savings or investments. But do you feel confident about the future and empowered to make decisions about what’s best for you and your family?
At Murdoch, your financial wellbeing is at the core of the services we provide. Taking a holistic view of your finances is crucial to planning for the future and maintain a sense of wellbeing. But it’s also not static. Reviewing your finances regularly will help ensure you take in to account changes in your circumstances and prepare you for the next financial milestone.
We recommend a review of your portfolio each time your circumstances change or an annual review if your situation hasn’t changed significantly.