Whether you’re just beginning your career or looking ahead to retirement, financial wellbeing impacts us all the same.
Here are some of your most common financial wellbeing questions, answered.
Your burning financial wellbeing questions, answered
ARTICLE
17 February 2022
4 min read
4 min read
Healthy financial wellbeing is paramount for success in all stages of life, and we’re here to show that it’s achievable. We collated some of your most pressing financial wellbeing questions and enlisted the aid of an AIA Financial Wellbeing Planner to help.
1. What does ‘financial wellbeing’ even mean?
That’s a great question. From a financial planner’s perspective, we often summarise ‘financial wellbeing’ as a gauge on having financial freedom to enjoy life.
This could mean different things to different people. For example, having a ‘rainy day fund’ for unforeseen events, or directing surplus cashflow to pay high-interest, non-deductible debt.
2. What are some ways I can improve my financial wellbeing?
With the general goal of achieving financial freedom, here are some simple ways you can quickly improve your financial wellbeing.
- Prepare for a variety of ‘what-if’ scenarios by reviewing your protection portfolio. Ensuring you have adequate insurance cover - for instance, private health cover or income protection - can help alleviate your worries moving into the future.
- Review and/or consolidate your superannuation funds to reduce unnecessary fees. This also helps ensure your funds are invested with the level of volatility matched to your risk tolerance.
- Consolidate any debt you have. This helps you manage your cash flow while reducing interest charges on multiple loans.
- Create a budget. This will help you better understand where your hard-earned money is going, and can help you tighten your monthly spending where necessary.
3. What are some top saving strategies I can implement?
A saving strategy is fairly simple to create. Firstly, you need to create a budget to help you understand how much of your pay you can afford to direct towards saving. Once you have an amount in mind, starting a regular savings plan in an investment fund can help you build wealth or save for retirement.
Alternatively, you can plan for retirement early by investing in your superannuation – this allows you to direct surplus cash flow in a tax-effective manner, which improves your overall financial position.
4. How much do I need to save for retirement?
Depending on the kind of lifestyle you aim to achieve in retirement, you may need anywhere from $48,266 per annum if you’re single, or $68,014 per annum.
5. What’s a good age for kids to learn about money?
It’s a good time for kids to start learning about money as soon as they start school. One way to do this is providing them a small allowance and showing them how saving their money can help them achieve something they really want.
6. What are some useful things to know about investing?
Investing in the stock market can be a great way to accumulate wealth over time. Start investing as early as possible – you can start from as little as $1,000 – and regularly add to your investment each month. This way, you’ll be dollar cost averaging your investment, which can lead to slow and steady growth.
7. Are credit cards a bad idea?
Short answer: no. If managed correctly (and paid off within the interest-free period), credit cards can be useful for quick access to cash and emergencies – plus the bonuses and perks they’re often bundled with.
On the flip side, if you don’t have the financial ability to pay off your credit cards quickly, you can often be exposed to high interest rates, which means your credit card will be more of a burden than a blessing.
Book a free consultation with an AIA Financial Wellbeing Planner
Still have questions that need answering? Book a free appointment with an AIA Financial Wellbeing Planner to receive tailored advice that helps lead you to a Healthier, Longer, Better Life.
Whether you’re looking to purchase your first house, sort your super or protect your future, our AIA Financial Wellbeing Planners consider every facet of your life, including your financial goals and objectives, and will provide you with bespoke advice that works in your best interest.
Visit AIA Financial Wellbeing for more information and book your complimentary consultation today.
Footnotes
¹ https://www.superannuation.asn.au/resources/retirement-standard
Staff Writer
Staff writers come from a range of backgrounds including health, wellbeing, music, tech, culture and the arts. They spend their time researching the latest data and trends in the health market to deliver up-to-date information, helping everyday Australians live healthier lives. This is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances. The information in this article is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances
Disclaimer:
This is general information only and is not intended as financial, medical, health, nutritional or other advice. You should obtain professional advice from a financial adviser, or medical or health practitioner in relation to your own personal circumstances.
This is general information only and is not intended as financial, medical, health, nutritional or other advice. You should obtain professional advice from a financial adviser, or medical or health practitioner in relation to your own personal circumstances.
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