Why You Should Care About Financial Wellbeing

Financial wellbeing is a term that’s often misunderstood. It’s not about being incredibly wealthy or having unlimited resources. Instead, it’s about having a sense of control over your financial situation, understanding where you stand, and feeling secure enough to handle whatever life throws your way. Jase, Nick and Marty discussed this on a The Numbers Game podcast episode and we’ve taken that wisdom and shared it below because financial wellbeing is relevant to everyone. We’ve unpacked what financial wellbeing really means, why it’s important, and how you can work towards it.

What is Financial Wellbeing?

When we think of financial wellbeing, the first thing that often comes to mind is wealth. It’s important to understand that financial wellbeing is less about how much money you have and more about how you manage your finances. It’s about understanding your financial landscape, making informed decisions, and feeling comfortable with your situation—no matter what that looks like.

As Nick (Managing Director of Inovayt) pointed out, “Financial wellbeing isn’t necessarily linked to wealth. It’s about being okay with where your finances are at.” For some, this might mean having a safety net in case of an emergency or simply being on track for achieving a specific financial goal.

Jase added that the key to financial wellbeing is being comfortable with your financial decisions. “You’ve got to have an understanding of your finances, the ins and outs, and what factors are important,” he said. Feeling comfortable with your finances comes from having a clear understanding of your current situation and knowing how to make informed financial choices.

Why Financial Wellbeing is Crucial

The importance of financial wellbeing goes beyond just feeling comfortable—it also plays a significant role in reducing stress and improving mental health. Financial worries are one of the leading causes of anxiety and poor mental health for Australians. Not being able to meet basic financial obligations, such as paying bills or managing debt, can lead to significant stress and even strain relationships.

Nick emphasized that financial wellbeing helps you maintain control over your finances. It’s about having an awareness of what’s coming in, what’s going out, and being prepared for regular payments, like bills, insurance, or even unexpected expenses like car repairs. “Having control over your finances releases stress,” Nick explained. “It’s knowing when things are due, understanding your income flow, and ensuring you have enough set aside for essential expenses.”

Having this control over your finances not only removes daily stress but also provides a sense of security. If something unexpected happens—whether it’s a job loss, medical emergency, or family crisis—you’re in a better position to absorb that shock. This brings us to one of the key aspects of financial wellbeing: preparing for the unexpected.

Preparing for Financial Shocks

Life doesn’t always go according to plan, and financial shocks can happen at any time. A sudden illness, a job loss, or a family emergency can quickly derail your financial stability. However, as Marty (Director of Business at Inovayt) pointed out, being prepared can make all the difference in how you navigate these challenges.

“A good financial plan provides relief and security when the unexpected happens,” he explained. “It’s about knowing that if something goes wrong, you’re covered.” Having an emergency fund or a safety net can make it easier to handle these difficult situations without sinking into financial chaos.

The key is to recognise potential financial shocks in your own life—whether it’s an illness, a sudden drop in income, or an unexpected large expense—and to plan ahead. Setting aside savings or establishing insurance for these situations can help you manage them when they arise.

Budgeting and Avoiding Chaotic Spending

One of the biggest obstacles to financial wellbeing is chaotic spending. As Marty mentioned, many people struggle with budgeting, often living day-to-day without a clear financial plan. This lack of discipline leads to impulsive purchases and unnecessary debt, creating stress instead of relief.

Budgeting isn’t just about restricting spending; it’s about making smarter financial decisions. When you have a plan in place, you can make informed choices about where your money goes. For example, instead of mindlessly spending on takeaway food, you might choose to save that money for a special experience, like dining out at a favorite restaurant. 

The idea is to strike a balance. With a clear financial plan, you can enjoy your life while still making progress toward your goals. Rather than making purchases out of emotion or impulse, you can prioritise what truly matters and save for those things.

The Role of a Financial Advisor

A strong support system, such as a financial advisor and accountant, can help guide you on your journey to financial wellbeing. A financial advisor (like Nick or Marty) acts offers guidance on how to budget, invest, and plan for the future. They help you navigate the complexities of finance while providing reassurance that you’re on the right track.

“Having a financial advisor along for the journey makes a huge difference,” Marty said. “It’s a win-win situation for the whole family when everyone is involved in the plan.”

An advisor can also help you step back from impulsive decisions and keep your goals in sight. Whether it’s managing business finances, budgeting for personal expenses, or making long-term investments, having someone to provide objective advice can make it easier to make better choices.

Moving Towards Financial Freedom

Ultimately, the goal of financial wellbeing is financial freedom—the ability to make choices without the constant worry of money. Nick highlighted that when you have control over your finances and a solid plan, you can make purchases that bring you joy, without feeling guilty about the cost. Whether it’s a handbag, a car, or a luxury vacation, when you’re managing your finances well, these purchases no longer feel like spontaneous splurges.

Financial wellbeing isn’t just about having a lot of money. It’s about being in control of your financial situation, planning for the future, and making informed choices that reduce stress and enhance your quality of life. With the right strategies and mindset, anyone can work towards financial wellbeing and create a more secure, fulfilling future.

Financial Healthcheck

We’ve teamed up with Inovayt to provide the Future Fam with a quick and free financial wellbeing health check. Once you’ve answered these questions, you’ll get a call to discuss your needs. What are you waiting for?