Financial wellbeing. It’s a bit of a buzzword at the moment – people seem to be talking about it everywhere. Even the banks.
At Tribeca, we’ve been talking about it since we started ten years ago. For us it’s not just a throw away term or catchy headline. It sits at the heart of what we’ve always been about as a company, and what we have always striven to achieve for our clients and our Tribeca Tribe. It’s that important to us.
So at an uncertain and challenging time that we’re all facing now and into the foreseeable future, what does financial wellbeing look like and how can we see our way through trying to obtain it?
What is financial wellbeing?
To us, financial wellbeing is simply having a healthy relationship with your finances by understanding how you can mindfully spend and save your money. In other words, control over your finances and in turn your choices. This results in two very strong emotional responses:
– A sense of security
– A feeling of freedom
By having financial security, you enjoy genuine freedom to make choices you love. We’ve developed a matrix which illustrates what financial wellbeing can mean now and for the future:
How can you achieve financial wellbeing?
Having a healthy relationship with your finances is not easy. We get that, especially in the current climate. Based on our matrix above, here’s how we can help you realise financial wellbeing:
Control over your finances: We’ll help you form healthy money habits so you’re very clear on where your money goes each month and, more importantly, what is realistic for your cashflow and spending if your income is impacted.
Capacity to absorb a financial shock. This is a big one. Obviously, we’re already in unstable economic waters. Now more than ever is a good time to review insurances, estate planning and emergency funds so that you’re financially prepared for the unexpected – whatever that might look like.
Financial freedom to make choices to enjoy life – We will come through this present crisis. So it’s important that we don’t lose sight of looking positively to the future. We can help you set, or reset, your goals based on what’s important to you. We’ll then map out what this looks like in ten years, three years and now – and work out a plan to get you there. Together.
On track to meet your goals: The year so far has shown us in stark reality that not everything in life goes according to plan. We’re here for you every step of the way, whether that’s simply checking in with you to keep your financial roadmap on track, or pivoting with you if circumstances change.
What is the Wheel of Life tool?
Glad you asked. This is one of the key tools we use to identify what we can do when life is out of balance – and to steer towards achieving that sense of financial wellbeing and wellness. Here’s what a completed wheel may look like:
The purpose of the wheel of life exercise is to make sure your wheel, the whole of your life, is balanced with all aspects or needs fulfilled in the right way. It’s a great tool for us to understand what is truly important to you, and how your finances can enhance – not hinder – your goals and aspirations.
Why is financial wellbeing important?
A sense of financial security and freedom in our choices is incredibly important to our mental health. According to studies, 46% of workers spend at least three work hours each week thinking about their finances. And poor financial wellness costs Australian businesses $33 billion per annum.
And this is before COVID-19.
We understand that over the coming months the global workforce will confront pressures unlike any before. It’s not going to be easy to achieve, maintain or even think about our financial wellbeing in this environment. But we all can’t avoid these challenges, so we believe it’s better to take positive action over our present and future rather than take no action at all. Out of adversity always comes hope.
We’re here to help you. Please talk to your adviser or any of our Tribeca Tribe if you have a question or need you wish to discuss.