A higher cost of living has increased financial hardship for many Australians.
Since 2020, interest rates, mortgages and inflation have risen fast, but real wages have gone down [1]. Despite low unemployment, higher living costs are affecting our living standards.
This challenging economic climate has seen more people experience financial stress.
And increased financial stress can impact both our physical and mental health.
What is financial wellbeing?
According to a 2017 study by the University of New South Wales [2], there is a strong connection between physical and mental health, and financial wellbeing.
People are in a state of financial wellbeing when:
- they can meet expenses and have some money left over
- they feel in control of their finances, and
- they feel financially secure, now and in the future.
How financial wellbeing is connected to overall health
Research from Heartward Strategic, in collaboration with Beyond Blue and the Australian Securities and Investment Commission (ASIC), shows that people experiencing financial challenges are at least twice as likely to encounter mental health issues than those who aren’t, and vice versa.[3]
So, improving your financial wellbeing could have a positive impact on your physical and mental health.
Ways to improve your financial wellbeing
- Recognise financial ‘red flags’
These may include getting behind on your mortgage repayments and paying bills late or not paying them. - Build your financial capability
There are many free websites providing financial education to help empower you to make more informed financial decisions and to live within your means. Have a look at the government’s MoneySmart website as a first step. - Plan and budget
A clear budget and financial plan can help you restructure spending, manage debt, and change spending habits. Check how much you’re spending and work out where your money is going with ASIC’s MoneySmart Budget Planner. - Get sound advice
Getting some professional financial advice tailored to your situation can help lay the foundation for a more secure financial future. HESTA members have access to dedicated experts that can give them a super health check at no extra cost, in person or over the phone.
Need help now?
When you’re struggling to pay the bills, super is probably the last thing on your mind.
But super fund HESTA can connect you to help beyond retirement planning.
HESTA has partnered with Infoxchange to deliver Ask Izzy*: a free directory that helps Australians find and access local support services anonymously online — wherever you are in Australia.
You can search for over 430,000 services close to you, including financial assistance, meals and accommodation. You can also find mental health counselling, family violence support, medical help, and much more. Check out Ask Izzy today.
*Ask Izzy is owned and operated by Infoxchange ABN 74 457 506 140.
Third-party services are provided by parties other than H.E.S.T. Australia Ltd and under the terms and conditions of those parties. H.E.S.T. Australia Ltd does not recommend, endorse or accept any responsibility for the products and services offered by third parties or any liability for loss or damage incurred as a result of services provided by third parties. You should exercise your own judgment about the products and services being offered.
Issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL 235249, the Trustee of HESTA ABN 64 971 749 321. This information is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. The target market determination for HESTA products can be found at hesta.com.au/TMD Before making a decision about HESTA products you should read the relevant Product Disclosure Statement (call 1800 813 327 or visit hesta.com.au/pds for a copy), and consider any relevant risks (visit hesta.com.au/understandingrisk).
[1] The Australia Institute: Real Wages Fell 4.5% in 2022; Largest Fall on Record as Rate Rises Risk Recession, February 2023
[2] University of New South Wales: Exploring financial wellbeing in the Australian context, 2017
[3] Heartward Strategic: Money and Mental Health Social Research Report, August 2022
