Prioritise Financial Wellness With These Expert Backed Tips

Financial wellness is a form of self care that is often misunderstood. It's not about the size of your bank balance or about earning as much money as you can. It’s about living a financially healthy and happy life that gives you the freedom and security you need to feel in control of your personal circumstances.

As the cost of living continues to rise in Guernsey, it’s understandable that money is a source of anxiety for many. But there are some things you can do to take a more proactive approach to managing your finances and safeguarding your future, which in turn could help you to reduce your stress levels. The team at Cherry Godfrey have shared some tips to help you feel more confident and secure in the financial decisions you make, today and for your future self.

1. Spend Mindfully.

It may sound obvious but before you make a purchase, consider whether you are spending your hard earned money on something that you really need. If you do, then it makes sense to buy it. But if it’s not a necessity, the next thing to consider is this - will it make you happy or will it add to your financial stress? Of course we all want to buy nice things, but from the simplest of indulgences like your daily coffee-to-go, to luxury or designer accessories, it all adds up.

So spend mindfully. Take a moment to think about what you’re about to buy, rather than making impulsive purchases. If you can afford it, enjoy it. But if you’re feeling the squeeze financially, take time to really think about it. If buying something will add to your financial stress, ask yourself, is it really worth it?

2. Invest In Yourself.

Spending money that improves your health, both physically and emotionally, is money well spent. By that, we mean investing in your wellbeing for the long term, not just spending for short term gratification. The Dalai Lama, when asked what surprised him most about humanity, spoke about people sacrificing their health in order to make money, then having to sacrifice that money - and more - to try to buy back their health. It just doesn’t add up.

So decide what you need to do now to invest in your health and wellbeing. Sign up for that yoga class, engage with a nutritionist, buy a gym membership - and use it! It’s only money well spent if you turn up. Investing in medical insurance can also make you feel more in control of your health, helping towards the cost of treatment plans and giving you access to quicker consultation and treatment options.

3. Invest In Your Family.

Starting a family is a lifestyle choice that many people make, and it’s an exciting time. But there’s no escaping the fact that it’s also an expensive business. Understanding this, and budgeting for your family’s needs is essential to feeling financially secure, both day to day and in the longer term. By planning for the one off purchases that come with a new baby and factoring in a time of maternity leave where your earnings may drop, you can adjust your spending and anticipate new expenses. Creating a budget that reflects your change of lifestyle can help to meet your growing family’s needs.

It’s crucial to think ahead too. Supporting your children through private or higher education can be an expensive business. The costs extend beyond the course fees, especially if your child is thinking about university study off island. There’s also accommodation, travel and living expenses. Financial support may be available through States funding for some courses, and there are also private student loan options that can support their further educational needs.

4. Travel Wisely.

We all need to unwind from the pressures of everyday life, and there’s no better way to do this than to escape on holiday. Prioritising a trip, whether it’s to Herm or Hawaii, is money well spent if it helps to reduce your stress and enables you to recharge. You can spend quality time with loved ones or enjoy new experiences on a solo trip, making memories that will last a lifetime.

Whether you’re planning a few days away or the holiday of a lifetime, you should always have travel insurance in place. From the additional expenses that can result from delayed departures or cancelled flights - something we’re all too familiar with, living on an island - to emergency medical expenses that we hope we’ll never face, the simple truth is you just don’t know what lies ahead of you. In the scheme of things, taking out a travel insurance policy, either for a single trip or for an extended period, is a relatively small price to pay for the financial security it offers.

5. Ensure Peace of Mind.

Have you considered how your family would cope financially if the worst happens and you are no longer around? It’s not something any of us really want to dwell on, but having life cover in place can offer a level of protection for your family financially in the event of your death. And when you think about it, we have cover in place to insure our cars and the contents of our homes - sometimes even our mobile phones. Surely life insurance should have a place on that list of priorities?

By preparing for the worst case scenario, with affordable premiums and the right level of cover for your circumstances, you and your loved ones can have peace of mind. You can structure it to meet your needs, with affordable premiums that can provide a lump sum, pay the mortgage or cover your family’s living expenses for a time.

6. Take Control.

At the end of the day, taking a proactive approach to your finances is just as important as taking a proactive approach to your physical and emotional health. It’s about being in control and making conscious decisions on the things that matter to you. And you don’t have to figure it all out on your own. If you’re looking for advice to help you keep track of your spending habits day to day, you’ll find lots of money management tips and advice online.

If you’re looking for expert guidance to help you cover all your insurance needs, or to plan financially for life’s big events, like weddings, home renovations or mortgages, speak to the experts at Cherry Godfrey and let them help you enjoy your best island life.