…and what you can do to improve your financial and mental wellbeing
Research reveals the 4 little known benefits of working with a financial adviser
Research by ASIC has revealed over 40% of Australians intend on obtaining financial advice in the future. But for those who intend to obtain advice, many are asking: “Do I need a financial adviser?”
As the curtains are drawn on a year of financial instability and economic uncertainty, many Australians aren’t exactly doing cartwheels over their current financial situation. As we’re beginning to learn – worrying about money can lead to all sorts of domino effects, often causing unwanted stress in other aspects of your life such as personal relationships, work, or health.
Managing your finances, especially in such difficult circumstances, takes time, skill and plenty of research. Put simply, not every Australian has this extra time or expertise. Which is where working with a financial adviser in Newcastle can help to not only relive your financial stress, but also deliver much needed peace of mind.
The benefits are more than just the money
While seeking financial advice can lead to financial security, it is the non-monetary benefits that are often forgotten but can be just as important.
In fact, individuals who receive advice say that the emotional benefits of the advice relationship represent 45% of the total value1.
Philip Kewin, CEO of Association for Financial Advisers, says financial planners play a critical role in building wealth and supporting Australians emotionally.
“It’s interesting because 49 per cent of people don’t seek financial advice because they feel they can do it themselves. What they don’t know is the financial and emotional wellbeing they can achieve out of financial advice.” – Philip Kewin
And that’s exactly what we are going to explore as you read on: the often overlooked, intangible, emotional benefits that contribute to the true value of advice.
Here are 4 little know benefits financial advice can provide:
1. Improved physical and mental health
Financial wellbeing is vital to maintain good overall health and wellbeing.
An alarming 2019 report by Fidelity International revealed financial issues are the #1 cause of stress. According to Head to Health (an Australian government mental health resource), stress and anxiety often go hand in hand with physical symptoms such as having trouble sleeping or loss of appetite. Thinking and stressing about money can even lead to headaches!
So, it is understandable why financial advice actually improves both your mental and physical health:
- Half of Australians who receive financial advice say their mental health has benefitted
- 18% say their physical health has improved from receiving advice2
The ability to receive ongoing support and financial advice allows you to have peace of mind knowing your financial future is secure, and allows you to focus on doing things you enjoy that keep you mentally and physically healthy.
2. A better social life
As a race, we’ve never been more aware of the importance of maintaining great social connections.
Receiving financial advice can not only provide you with financial security to pursue more of the activities that you enjoy, but it can actually make you happier and more inclined to go out and socialise.
Financial stability enables you to go out and spend time and money with friends regularly as well as spend your money on leisure and entertainment activities – all of which support a more sociable, healthier and happier life.
3. Improved job satisfaction
Of those who receive financial advice, 30% say that there are benefits to their work and job satisfaction2. Job satisfaction is the level of contentment employees feel within their roles.
Australians struggling to manage their finances say that their work performance drops as they spend more time stressing about money. It’s easy to understand why financial security can lead to increased productivity and job satisfaction.
What’s more, this can have a knock-on effect. As you start to perform better at work, you are likely to make more money which can further eliminate any financial worries.
4. A quality family life
Relieving money issues can lead to improved relationships with your partner and family. Understandably, financial issues can lead to unwanted tensions in your personal relationships. This is amplified further in a family if you share finances and are carrying the burden of combined money problems.
Research shows that 37.8% of Australians receiving financial advice say their family life has improved as a result.
When financial issues are well managed, the benefits go far beyond purely the advantages of having more money. Seeking advice can lead to financial security, and deliver greater peace of mind and happiness.
A financial advice relationship may just be one of the best investments you’ll ever make.
If you’re ready to secure all of the benefits financial advice can provide for you, schedule a complimentary initial appointment with one of experienced Financial Advisers. We have offices located in Newcastle (NFPG), Erina (CCFPG) and Sydney CBD (SWA).
1 Vanguard Research. Assessing the value of advice, September 2019. https://personal.vanguard.com/pdf/assessing-value-advice.pdf>
2Fidelity International. The value of advice: Helping Australians navigate towards a better financial future. https://www.fidelity.com.au/insights/investment-articles/the-value-of-advice/
3 CPA Australia. The Value of Advice: Research Report. https://www.cpaaustralia.com.au/-/media/corporate/allfiles/document/professional-resources/public-practice/the-value-of-advice-research-report.pdf?la=en&rev=2e5c346bc3b644608601df3da532d2a8
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.