Financial wellbeing is seen as having a healthy relationship with your finances. This healthy relationship is made up of four elements that give you financial security and freedom of choice, in both the present and your future.
The four elements of financial wellbeing consists of:
- Control over your finances
- Capacity to absorb a financial shock
- The financial freedom to make choices to enjoy life
- Being on track towards meeting your goals
Once all four of these elements have been achieved, a person is considered to have reached financial wellbeing. The great thing about financial wellbeing is that it has nothing to do with the amount of money you have – it’s about how you use it. This means that someone earning $80k/year can have a higher level of financial wellness compared to someone on $400k/year.
Unfortunately, many financial plans focus solely on increasing your financial security (rather than your overall financial wellbeing), leaving out the elements that give you freedom of choice.
A good plan incorporates all elements of financial wellbeing
Every decision should be made with your goals in mind. The table below shows how each part of financial wellbeing is achieved through one of our tailored financial roadmaps.
Control over your finances
We help our clients understand where their money goes each month and, more importantly, the reasons behind why they spend the way they do. Our clients are given one-on-one cashflow coaching, where we help them form healthy money habits – such as conscious spending – which allows them to take back control of their finances.
Capacity to absorb a financial shock
We set our clients up with insurances that will keep them covered in case of emergency. Our estate planning services offer our clients both financial security and peace of mind, with the knowledge that their family is financially secure should something happen to one of them.
On top of this, we assist our clients in setting up access to emergency funds, meaning that they’re financially prepared for the unexpected – whatever that might look like.
Financial freedom to make choices to enjoy life
At Tribeca, we call this your Good Life.
During our clients’ first appointment with us, we’ll help them identify what their Good Lifelooks like, by getting to know who they are and what’s important to them. To help clients understand what their goals are, we go over their ‘Four L’s’ – Life, Love, Learn and Legacy – which helps us identify what they deem important in life.
Once we have a clear idea of their Good Life, we’ll map out a 10-3-Now. This shows our clients where they want to be in ten years’ time, then works backwards to show them what life will look like in three years’ time and finally, the changes they’ll have to make now to get there.
All of this is created with your goals in mind. Our plans are designed to help you reach the goals you have for your future, whilst still giving you the financial freedom to enjoy your Good Life today.
On track to meet your goals
We understand that not everything in life goes according to plan.
To ensure that our clients stay on the right path, we keep in contact with them regularly. This means that if a client deviates from the financial roadmap we’ve created for them or if their circumstances change, we can adjust their plan to help them get back on track.
Along with this, we help our clients reassess their goals. So, if what they want from life changes, our financial roadmaps are ready to change with them.
The bottom line
Your Advisor should understand that freedom of choice in life is just as important as financial security. A good Advisor should be helping you live your Good Life – whilst still providing you with the expertise to ensure that you’re in a financial position to continue doing so.
So, if your current financial plan isn’t helping you address all four elements of financial wellbeing, it’s time to get a second opinion.
If you’d like a complimentary assessment of your current financial plan to see if it’s really made with your needs in mind, feel free to contact us today.