Getting Started on the Path to Financial Wellness

Eating healthy, regular exercise and getting enough sleep are key to maintaining physical and mental health. And whether you’re just starting out in your career or raising a young family, staying healthy, in body and mind, is a personal commitment. No amount of cajoling or persuasion by friends or family will be enough motivation in the long run, if you don’t want it for yourself.

And so it is the same when managing your personal finances. Financial wellness is just as important as other aspects of health. But you’ve got to know why you want it and then take responsibility.

Because no matter how well you eat or how frequently you exercise, stressing over money can undermine the real, positive benefits of these activities. In fact, financial stress may even have an impact on your physical well-being and health. 

On the flipside, the more control you have over your finances, the more you can achieve wellness and peace of mind. When you learn to make healthy financial choices, providing for your family’s needs, as well as your own, comes naturally.

What is financial wellness?

Financial wellness is about having a healthy relationship with your money, so that your choices and actions add to your total well-being. It’s about being involved with daily money management, and taking healthy steps to reach optimal financial health.

We can define “financial wellness”¹ as a state of being where you:

•      Have control over your daily and monthly expenses
•      Can absorb financial emergencies
•      Are on track to meeting financial goals
•      Have the financial freedom to enjoy life comfortably

In other words, financial wellness is about taking care of your money as well as other aspects of your well-being.

How to start practicing financial wellness  

Practicing financial wellness is simple and always begins with the first step. All it requires are habits and routines that support a healthy relationship with money.  Some tips on how to incorporate financial wellness into your daily life include:

Stop comparing: Stop benchmarking your financial situation to others, especially when neighbours and friends seem better off. Constant judgment and comparison will only create more stress and feelings of inadequacy.

Start talking about money: Whether it’s with a financial professional, your spouse, or a trusted friend, have an honest conversation about your finances. These conversations make money less of a taboo topic, which helps to keep an open mindset about spending and saving habits.

Set goals and make changes: After talking it out, take action. Set detailed short and long-term financial goals, and indicate a dollar amount and end date. Your goals will guide your money decisions and keep you motivated to stay on track.

Simplify money management: When it comes to managing your money, less is more. It’s easier to monitor daily expenses and keep track of financial goals with everything in one place.

One such account is the HSBC Advance, which makes it easy to integrate and maintain financial wellness into your daily routine. This all-in-one bank account has everyday features that keep your banking simple:

Up to 6.95% p.a. bonus interest on SGD savings

The HSBC Advance account keeps you motivated about building up your savings.

At 6.95% p.a., HSBC Advance has one of the highest bonus interest rates among bundled accounts in Singapore. All you need to do to qualify every month is:

•      Save: Top up between S$1 - S$2,000,000 to your HSBC Advance account each month
•      Spend: Charge $800/month on HSBC All-in-One Debit Card for 3 consecutive months
•      Remit: Remit minimum of S$500 online involving foreign exchange
•      Insure: Insure with eligible HSBC plan

Here’s a quick summary table:

Access to HSBC Advance Wealth Managers

HSBC Advance isn’t just a bank account -- it’s your gateway to long-term financial health. Along with mobile banking, you get access to a dedicated Wealth Manager who’ll help you grow your savings.

Together, you will develop a sustainable plan towards achieving key financial milestones. Whether it’s saving for your wedding, a home’s down payment or planning your children’s education, your Wealth Manager can guide and support you every step of your life.

HSBC Advance credit card

Save on day-to-day expenses with the HSBC Advance credit card. Besides keeping track of all your spending in one place, the HSBC Advance credit card gives you cashback on anything you spend on.

Unlike most cashback cards, there’s no minimum spend required. You get 2.5% cashback on any amount under $2,000, and 3.5% cashback when you spend over $2,000 a month.

HSBC Personal loan

For life’s planned and unplanned moments, the HSBC Personal Loan allows you to borrow up to 8 times your monthly income, with promotional interest rate from 3.7% p.a. (EIR 7% p.a.) — one of the lowest rates in town. Whether it’s to be used for home renovation or a medical emergency, having this personal loan facility available will set your mind at ease.

Start your journey to financial wellness

Financial wellness is an ongoing practice. Just as a crash diet or a one-time visit to the gym won’t achieve a sustainable level of fitness, achieving long-term financial health requires patient commitment and discipline.

The good news is that it gets easier over time. When you put thought into every purchase and consider the big picture before making financial decisions, making the right choice becomes second nature.

With a bank account like HSBC Advance, staying on top of your expenses and savings is easier than ever. As you become more financially dependable and responsible, you spend less time managing and growing your money and more time doing things with the people you love -- family.

Source:

1. “Financial well-being: The goal of financial education”, by Consumer Financial Protection Bureau, 2015

This article was developed in collaboration with HSBC.

By Rohith Murthy

Rohith leads SingSaver, a financial comparison site aimed at helping consumers in Singapore save money and time by finding the right financial products.