Knowing where to start and how to improve your financial health can be challenging but following these steps can set you on your way to financial wellness.
Your credit score is a mirror of your financial position. Getting money smart may not only help your credit score but also set-up good money habits that can last a lifetime.
Like most habits, the secret is to keep it simple and do it often. Below are some Wisr tips that can go a long way to helping kick-start your financial wellness.
1. Spend less than you earn
It sounds pretty simple, but it can be easy to spend more than you earn. Create a budget that lays out what your in-comings and outgoings are. It will allow you to see exactly where your cash is going each month. Don’t worry if you’re not a whiz with a spreadsheet though – there’s plenty of apps available to download that will guide you through the whole process.
2. Reduce high interest debt
According to a Wisr survey, one in four Australians are financially stressed. The biggest contributor being high interest credit card debt. A wise first step is to look at all the debt you are paying and prioritise paying off the highest interest first. If you can’t pay off outstanding balances across multiple cards and loans every month, a debt consolidation loan is one option to get back control.
If you do have a credit card, make sure its suitable for your needs and provides you good value. For example, it may not be worth the extra rewards points if you’re paying interest rates at 20%.
3. Build up your nest egg
While retirement can seem like more than a lifetime away (particularly at 8:30am on a Monday) it’s still something you need to prepare for. Australians are living longer and healthier lives, which means you may need more money put aside for when the time finally arrives.
You could be making non-concessional contributions to superannuation or putting a little bit of your salary in the bank each pay day to improve your financial position. This not only gives you the chance to reach your lifestyle goals later in life, but also build good financial habits today.
4. Know what you’re worth
Financial wellness is about making sure you get a smarter, fairer deal. Understanding your credit score is the first step in achieving this.
It means youʼll be well informed about your creditworthiness before you apply for a loan or credit card. And more importantly, now that you understand your credit score can change over time, you’re able to perform that financial health check more regularly.
So make sure you get Wisr and get your credit scores today – it’s free and the most comprehensive tool of its kind in Australia.
Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Finance Pty Ltd does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.