3 tips for financial peace of mind

Life can sometimes throw us curveballs and test our resilience and the last few years have really brought this home for New Zealanders with the challenges that Covid 19 has brought along with global and economic instability. In New Zealand alone, 69% of us are concerned about money, with this figure rising to 82% in young people aged 18-34. Many of us are worried about our finances, including the cost of living, inflation, and somewhat shaky investment markets and this rising tide of negativity can be hard to cope with. So, how can New Zealanders navigate economic uncertainty? And on a personal level, what can each of us do to support our personal financial wellbeing? In this article we explore three areas which may contribute to your financial peace of mind.

As adults, we are faced with multiple financial decisions throughout life. The older we get the more financial decisions we seem to need to make! Many of these decisions involve seemingly complicated financial products such as mortgages, insurance, Wills and investment products. Often this leaves us focusing on what we might think are the ‘must dos’ today like insuring the car or re-structuring the mortgage, and we can tend to put other financial decisions like creating a Will or investing in the ‘tomorrow’s problem’ basket. If you find yourself thinking this way, then ask yourself ‘how would I feel if I knew that some of ‘tomorrow’s problems’ were sorted?’ There can be real strength gained from feeling in control of your finances and knowing where your finances are heading. Let’s explore three things that might be in the ‘tomorrow’s problem’ basket which we think may provide you with personal financial peace of mind today.

Tip one: creating a Will

Do you have a Will? If you do, you have made the decision to protect what you have (your assets) and ensure that you have the final say about what happens to your assets when you pass away. You have the peace of mind that any financial or material wealth you are creating will be passed on in the way you intend, and that you can have a positive impact on those around you when you pass on.

If you are yet to create a Will, think about the peace of mind that having a Will may provide you. Life is uncertain, and the last few years have demonstrated this for us in a rather spectacular way. Having a Will can provide you with certainty, knowing that your loved ones will be cared for and that your wishes will be followed as you would like.

Tip two: Investing regularly

Do you have a savings plan in place to build your wealth for yourself and your family? Many New Zealanders are now familiar with KiwiSaver as a way of generating wealth for retirement, but may feel they lack the appropriate level of knowledge to grow their wealth in other ways. Consider the impact that regular saving may have on your financial wellbeing and peace of mind. There are many ways of saving such as investing in managed funds, shares or a regular term deposit. How you choose to save is up to you, but knowing that you are regularly contributing to ‘future you’ may provide you with financial peace of mind as you navigate life’s uncertainties. Investing regularly may provide a sense of purpose – you are controlling what you can control in your financial world.

Tip three: Talking to your family about your finances

Have you opened up to your family about your finances? Many of us may feel that our financial matters live in a black box which should never be opened in public! This may be for a variety of reasons including shame, not wanting others to feel disappointed in us, or we may just be naturally reticent to share personal information with others. However, consider the role that talking to your family openly about your financial plans may have on your personal financial wellbeing. We’d encourage you to be open with your family about your financial plans, and share with them your honest self. Make sure that the family members you talk to are ones you can trust who will have your best interests at heart. Explaining your plans, and talking financial decisions through with family, may be a helpful way of validating how we think or feel about the decisions we are making. It also means that we can have confidence that the others around us know what we are setting out to do and can support us in our financial wellbeing journey.

Bonus tip: Investigate personal insurances

We’d also encourage you to investigate personal insurances if you’re wanting financial peace of mind. Personal insurance comes in many different shapes and sizes, and it can be helpful to have the ‘personal insurance conversation’ with a professional such as an insurance advisor.

About the authors

Flint and Footprint are DIY platforms focused on empowering New Zealanders to take control of their financial wellbeing. Footprint offers an online Will service, along with employee benefit programmes for employers. Flint Wealth is an online investment platform specialising in managed funds for investors. Footprint customers are eligible to receive special offers from Flint Wealth through the Footprint platform. Together, Footprint and Flint are collaborating to move the dial on financial wellbeing.

References:

https://retirement.govt.nz/news/latest-news/financial-stress-impacts-mental-wellbeing/

Author: Jono O’Grady