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MONEY M AT T E R S
with TANYA HOWE
F R O M B A R R Y H O C K E Y A C C O U N TA N T S
WHAT IS FINANCIAL WELLNESS AND HOW CAN YOU ACHIEVE IT?
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he beginning of the year is often the time when people reassess their overall wellness and set new goals to improve their physical and mental health, but there’s a third component of our overall wellness that is often overlooked: Financial Wellness. Financial wellness can dramatically improve your life and means that you have the ability to reach your goals, take advantage of opportunities and gives you flexibility to pursue your dreams. Not to mention, sleeping soundly at night. The best way to achieve financial wellness is through financial literacy. Being financially literate means understanding the importance of setting short and long term goals (like home ownership and retirement). It means understanding the difference between good and bad debt and avoiding high interest credit cards. It also means that no matter what stage of life you’re at, or what your income is, you know how to live within your means, stick to a budget and plan for your future. Remember it’s not how much you earn that counts, it’s how much you spend! With rising inflation and the continuing 124 COFFS COAST
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COVID pandemic, many people are feeling financially stressed which can lead to poor health, relationship breakdowns and depression. Many financial stresses can be avoided with some basic knowledge. Here’s a few tips to help improve your financial wellness: CREATE A BUDGET A simple budget helps you control your spending, track your expenses and save more money. It’s the first vital step in taking control of your finances and it’s easier than you think. Download a free template such as https:// moneysmart.gov.au/budgeting/budget-planner and get started today. Be honest with the numbers, remember no one else has to see it, and that’s the only way your budget will work for you. SET FINANCIAL GOALS What are your financial goals? It could be short term goals like saving up for a holiday, long term goals such as purchasing property or paying off your mortgage, creating an investment portfolio, or even early retirement. KNOWLEDGE Once you set your goals, you can acquire the knowledge and resources to help you achieve them. Don’t be afraid to ask questions. Talk to
your accountant, financial planner or your bank manager who can work with you to help you reach your financial goals. Read everything, ‘Knowledge is Power’. There are also many great podcasts available for free, take a look some of these for inspiration: • Money Magazine’s ‘Friends with Money’ • ‘She’s on the money’ by Victoria Devine • ‘The Broke Generation’ by Emma Edwards KEEP YOUR TAX & FINANCIAL RECORDS UP TO DATE Keeping accurate and up-to-date tax and financial records is vital to the success of your financial goals. Good records help you manage your cash flow more efficiently, keep up to date with tax lodgements and make applying for bank finance easier. Using a registered tax agent ensures greater accuracy and less chance of audit, and their fees are tax deductible. At Barry Hockey Accountants, we have a dedicated team to assist you. We not only specialise in taxation, but we have extensive background skills in finance and banking. Our firm is big enough to get the job done and small enough to care.
