The Impact of Financial Planning on Mental Health: Why It Matters More Than Ever
In today's economic climate, financial uncertainty has become a source of stress for many Australians. Rising costs of living, coupled with increasing interest rates, have left two-thirds of Australians feeling some level of financial stress, according to the 2024 AMP Financial Wellness Report.
This stress affects more than just bank accounts—it significantly impacts mental well-being. At Thriving Wealth, we believe a clear financial plan is more than just a way to manage money; it can be a path to greater mental clarity and peace of mind.
How Financial Planning Improves Mental Well-Being
Having a well-structured financial plan is a crucial step toward reducing anxiety and bringing peace of mind. Financial stress can be overwhelming, but when clients have a plan in place, they gain a sense of control over their future. In fact, the AMP report highlights that only 14% of Australians facing moderate to severe financial stress feel able to manage it well. Financial planning gives people the tools and confidence to improve this statistic.
At Thriving Wealth, we’ve seen the impact of financial planning firsthand. Couples on the brink of divorce have realigned their priorities and strengthened their relationships, and individuals suffering from anxiety or depression have regained a sense of purpose and excitement for life. Our approach helps clients set clear, achievable milestones—‘joy moments’—that contribute to their overall happiness and help them build a more fulfilling life.
Breaking the Myth: Financial Advisers Are Not Just for the Wealthy
There’s a common belief that financial advice is only for the rich, but the truth is that those still building their wealth often need it the most. According to the AMP report, 32% of Australians earning between $15,000 and $50,000 are moderately to severely stressed about their finances. Millennials, in particular, face significant challenges, from rising childcare costs to managing household debt and navigating career progression.
At Thriving Wealth, we focus on empowering millennials through education and behavioural coaching, giving them the tools to manage their money and build wealth. Financial advice isn’t just about managing wealth—it’s about helping people create it. Our goal is to provide clients with the knowledge and strategies they need to navigate life’s complexities and achieve long-term financial success.
Pushing Through the Cost-of-Living Crisis
The cost-of-living crisis is affecting Australians across all income levels, with 50% of moderately and severely financially stressed individuals reporting that their personal finances have been significantly impacted. Many feel overwhelmed, and some are choosing to give up, burying their heads in the sand. However, those who take proactive steps are not only improving their financial situation but are also reporting a better overall quality of life.
At Thriving Wealth, we encourage our clients to push through these tough times by helping them create a clear financial plan. With the right guidance, they can reduce stress and anxiety, feel more in control, and move confidently toward a more secure future. Financial planning during these challenging periods can make the difference between feeling stuck and building a pathway to financial resilience.
Your Path to Financial and Personal Fulfilment
Financial planning is about much more than managing your money—it’s about helping you live a fulfilling life. By addressing both short-term financial concerns and long-term goals, we help our clients find peace of mind and a sense of purpose in their financial journey. Whether you’re navigating household debt, planning for retirement, or dealing with life’s unexpected expenses, Thriving Wealth is here to support you.
If you’re ready to take control of your financial future and improve your overall well-being, our team can help you build a roadmap to success. Together, we’ll create a plan that allows you to thrive both financially and personally.
About the Author
John Cachia is a seasoned financial adviser and dedicated parent of three boys. With a passion for financial literacy and wealth management, John has been in the industry since the young age of 14. His early start in finance has provided him with a wealth of experience and insight, which he now uses to guide families towards achieving their financial goals. As Australia's leading wealth adviser for young families, John is committed to helping parents become positive financial role models for their children, ensuring a secure and prosperous future for the next generation.