Financial Wellness

Financial Wellness

We are regularly reminded of the need to mind our physical and mental wellbeing. Employers are encouraged to help us be more aware of our health and state of mind. But what about our financial wellbeing. Clearly this can become a great stress in our lives as we are pushed to consume more and get on the property ladder etc. So how do we mind our financial wellbeing?

First of all, money is clearly not a source of happiness. It is what money can do and how we use it that can lead to a sense of security and lower stress.

Most people report 5 main sources of financial stress.

1.)    Being unable to control our daily finances.

2.)    No clear plan to reach their desired goals and objectives.

3.)    Not being prepared for financial shocks.

4.)    Not having the choices, we would like due to limited finances.

5.)    Not being able to provide security for those we love.

If we turn the list above over, we can start to see a path to financial wellness.

1.)    Being in control of daily finances.

2.)    Identify our desired goals and objectives and devise a plan to achieve them.

3.)    Have a contingency fund or cover to deal with financial shocks.

4.)    Work on our personal finances so that we do have choices.

5.)    Be clear about our wishes and have them discussed and written down.

Most financial advice is centred around financial products. How do I make my money work harder for me, what is the best investment now, should I get more life cover? These are meaningless conversations if you are feeling stressed due to the lack of clarity on any of the 5 points above.

It is also interesting to note that people generally only seek financial advice when they feel they need a financial product like a mortgage, life policy or savings product. Hence most financial advice is geared to delivering a financial product. If you are not an obvious candidate for one of these solutions, it doesn’t mean that you do not require financial advice. You could still have financial concerns or need to make difficult financial decisions. It is then often the case that advice is then sought from someone you trust but who may not be knowledgeable or trained to help.

I believe that financial advice should be about helping you avoid financial stressors. It needs to be holistic and cover your current income and expenditure, your current debts and any assets you may hold. It needs to have goals and objectives with associated time horizons. It needs to be realistic. Most of all it must be a plan that you can believe in. If not, you are unlikely to make the changes required, if change is required, to remove the financial issues that cause you stress.

A Financial Planner is a professional who is committed to putting your needs first. They will listen to your financial stressors. They will analyse carefully your current financial position. They will listen to your goals and objectives. They will then deliver a written plan clearly explaining what courses of action you should consider. Then with the planner’s guidance you can make the financial choices that suit you.

Just think if you can address your financial concerns what a difference it could make to your overall feeling of wellbeing.

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To be clear the comprehensive financial plan we will provide for you is clear and practical financial advice that will develop your vision of the future and help you design a strategy to guide you to your goals. It is not prepared with a sale in mind. You will be free to transact our recommendations with another provider if you decide not to use Foundation Stone Financial Planning Limited for other services. If you choose us to implement portions of the plan, we will offset the cost of your plan production by any fees or commissions paid to the us by an investment or insurance provider.

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