A debt-free home makes you feel more secure, while renting and having no savings aren’t good for your ‘financial wellbeing’, according to a recent survey.
The ANZ Financial Wellbeing survey found that 23% of us have no real financial concerns, while 40% of us are doing “okay”. But 24% of Kiwis are just getting by and the final 13% are really struggling and had no confidence in their finances. The study’s authors had three main tips for improving your financial wellbeing:
- Step 1: Start saving money for unexpected expenses. Apparently “real comfort” comes from having $100,000 in savings, but just $1,000 in savings will boost your sense of financial wellbeing.
- Step 2: Don’t borrow for everyday expenses – it makes you “miserable” to be living on debt.
- Step 3: Own your own home. This is unsurprisingly comforting. And pay off the mortgage as quickly as you can.
One other factor was having a steady income, which contributes to a feeling of financial security.