When we talk about financial wellbeing, it’s easy to assume we’re talking about how much money you have.
For me, it’s much broader than that.
Financial wellbeing is about understanding where you stand, feeling that your money is supporting the life you want to live, and having enough of a plan in place to deal with both the things you expect – and some of the things you don’t.
And that will look different for every woman.
For one woman, it might mean finally getting on top of debt. For another, it could be building an emergency fund, contributing more to super, investing with greater confidence or simply feeling less anxious every time a financial decision needs to be made.
The important thing to remember is that financial wellbeing isn’t something you suddenly achieve. It’s usually built through a series of small, thoughtful decisions over time.
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Know where you stand
You don’t need the perfect spreadsheet or an elaborate financial system.
But you do need a reasonable understanding of what you have, what you owe, where your money is going and what you’re building for the future.
That means knowing your cash flow, savings, debts, super and investments.
Clarity is powerful. Once you know where you stand, it becomes much easier to decide what deserves your attention next.
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Give yourself some breathing room
Life has an annoying habit of not always following the plan.
A job can change. A relationship can end. Parents may suddenly need care. Your health or the health of someone you love can change.
Recent Vanguard research is a timely reminder of this. Women represented more than two-thirds of people in its study who retired earlier than they had expected.
That doesn’t mean we need to live expecting the worst. But it does highlight why having some financial breathing room matters.
Building an emergency fund, managing debt and keeping some flexibility in your finances can give you more choices when life changes direction.
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Give your future some attention
Your future self deserves a seat at the table too.
For many women, particularly in their 40s and 50s, retirement can go from feeling very distant to suddenly feeling much closer.
Your super is likely to become one of the largest financial assets you build, so understand your balance, contributions, investment strategy and whether you’re making the most of the opportunities available to you.
You don’t need to know exactly what retirement will look like yet. You simply need to start thinking about the lifestyle you want and whether your finances are moving you towards it.
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Protect what you’ve built
Financial wellbeing isn’t only about accumulating wealth. It’s also about protecting yourself along the way.
Review your insurance. Check your super beneficiaries. Make sure your Will and important documents are current and accessible.
These are easy things to keep putting into the “I really should look at that” pile – until suddenly they matter.
A little organisation now can make a difficult time considerably easier later.
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Make your money support your life
This is perhaps the part I care about most.
Financial wellbeing shouldn’t mean constantly saying no, depriving yourself or obsessing over every dollar.
Your money is there to help you live your life.
What do you value? What gives you freedom? What would you like the next five, ten or twenty years to look like?
Once you understand that, the financial decisions become more purposeful. You’re not simply saving more, investing more or paying down debt for the sake of it. You’re using your money to help create the life you want.
Financial wellbeing starts with one step
You don’t need to overhaul everything this weekend.
Choose one area of your finances that has been sitting in your “I really should look at that” pile and give it some attention.
Small improvements can create a surprising amount of confidence over time.
And if you’re wondering where to begin, I’ve created A Guide to Financial Wellbeing for Women to help you understand some of the practical steps you can take to feel more informed, organised and in control.
Start where you are. Take one step. Then build from there.
