It would be safe to assume that a health pandemic might have had a negative impact on the financial well-being of millions of Australians.
Still, against all expectations, the financial wellbeing of Australians has hit a record high, according to the latest Commonwealth Bank’s latest Australian Consumer Financial Wellbeing report.
The report analysed the data of over 5 million customers and considered 4 components to measure financial wellbeing:
- The capacity of meeting financial obligations;
- Financial freedom;
- Control of finances; and
- Financial security – now, and under possible adverse circumstances.
Melbourne Institute Professor John de New said that “this unexpected improvement in financial wellbeing could be explained by a number of factors including changes to consumer spending patterns amid lockdowns and economic uncertainty”.
If you are wondering how that was possible for many Australians, and would also like to change your status from ‘getting buy’ to ‘doing great’, start with these financial do’s:
1. Consider refinancing your home loan.
When was the last time you reviewed your mortgage rate? A recent survey by Rate City reported that 3 out of 4 borrowers who asked for a rate cut, got one.
2. Look for new ways to save.
We know that making our coffee at home is one way to save a few dollars, but what else can you do? A few bucks here and there can propel your journey towards your financial goal, whether it’s paying off debt or saving for a home deposit. Here are a few tips to get you started:
- Activate the round-up feature in your bank account
- Use apps to scan receipts in exchange for cash
- Look for discount codes before buying anything online
3. Find out what financial support is available to you
Some people have been affected more than others. There are a number of financial support packages available for people and businesses impacted by the pandemic. Look up what government support you are eligible for.
4. Build an emergency fund
If possible and if you don’t have one yet, starting set aside some money for an emergency fund.
The size of your emergency fund will depend on your lifestyle, essential expenses, income, and dependants, but the rule of thumb is to have enough to cover at least three to six months’ worth of expenses.
5. Check your insurance coverage
Enough with the eye-rolling! Insurance is a very important aspect of your financial wellbeing. Insurance coverage can help you recover financially from unexpected events and avoid additional financial stress.
Here are the five most common types of insurance that every individual needs to consider:
- Health Insurance.
- Car Insurance.
- Homeowners or Renters Insurance.
- Life Insurance.
- Disability Insurance.
At UFinancial, we’re passionate about financial wellbeing. Whether you need help finding the right home loan for your current needs or developing a financial plan to meet your life goals, we’re here for you. Start the conversation here.