Want to feel better about money? Find your financial community

No worries? Not exactly. As Mental Health Awareness Week 2024 begins, a significant number of New Zealanders are aware we have a problem with our wellbeing, and it’s because we’re strung out about money.  

Here's what you might not realise, though: with a little help from our friends, a bit more information and a few key actions, we could be living better on what we’re earning now.  

Break your money-worry cycle

Te Ara Ahunga Ora Retirement Commission surveys 3000 Kiwis a year about money matters, and the latest findings paint a relatable picture. Fifty-six percent of us describe our financial position as uncomfortable, with 64% of women feeling financial stress, along with 82% of people aged 18–35. Financial discomfort has increased among those who have a mortgage (56%) but remains highest for renters (67%).

So, you’re not alone – which isn’t the only good news! Despite (or perhaps because of) all this, compared to previous years, more people are setting long-term financial goals (59% compared to 54% in 2022), plus there’s growing interest in information about planning for retirement (34% compared to 29%).  

Are you one of those who’re keen to learn more and feel better for it? The theme of this year’s Mental Health Awareness Week, ‘Community is… what we create together’, is on the money: creating your own community from which to gain the information you need can play a priceless part in both your financial and your overall wellbeing.

Build your financial community

Worrying about money affects our emotions, which then impacts our spending. Who hasn’t made impulsive decisions when stressed or fallen into the trap of comfort buying? We might feel too ashamed about our finances to do anything about them, experience anxiety, miss out on social activities, not seek the healthcare we need, make unhealthy food choices, feel unmotivated to exercise, and be less productive or even skip work.

One proven antidote won’t cost you a cent – opening up to others about it. It sounds so simple but can be transformative, and it’s catching on. It’s cooler than ever to kōrero about cash, with an uptick in New Zealanders choosing friends and whānau as their preferred source of financial advice.

Open communication is a hallmark of healthy connections, and real talk about money will improve your relationship with it while deepening your bonds with your besties. As well as essential information that can improve your financial position and peace of mind, you’ll gain a sense of trust in yourself and others, plus everyone stands to benefit from sharing not only their successes but also their struggles. It’s a win-win-win-win-win.

Broaden your community by:

• Including colleagues you feel safe with
• Enlisting the help of a free financial mentor
• Following reputable social media finfluencers (financial influencers). See who we’re following at @live_sorted and build up your network from there  
• Asking us questions any time.

Money terminology 101

It can be difficult know what to ask when you don’t know the first thing about this stuff. Dip into our glossary to decode unfamiliar terms, then put the ball in your friends’ and family members’ court with fundamental questions like: What do you do that helps you save? How do you manage debt? Do you invest?

What works for others might not as well work for you, but little by little, you’ll suss out what money beliefs or behaviours you might have inherited and new hacks you can adopt. From dealing with emotional reactions to what to do if your partner doesn’t want to discuss money, you’ll find top takeaways on how to have good chats here and here.

Actions you can take now

If step one is asking for help, step two is helping ourselves. Small changes can lead to big gains in the long term, so put your money where your mouth is and turn what you learn from your community into action by getting your own systems (like virtual buckets) in place.  

Small wins count. Often, simply knowing where you stand and keeping track creates a sense of control. Work out where you’re at, then identify some moves to make; Sorted’s 6 steps can get you started.  

You don’t need to learn do everything at once, either. Instead, go gently and set yourself realistic deadlines. Nobody’s perfect, so build some fun into your budget and you’ll be able to relax a little more. Soon enough, new behaviours will become no-brainers.  

A problem shared is a problem halved

Our emotional and financial wellbeing are interconnected – you virtually can’t have one without the other. If mental health is wealth, you can give yourself the gift of both by kicking off conversations with your chosen community.  

Take a non-judgmental approach: no one started out knowing everything and no one can guarantee how their choices will play out. What we do know is that normalising talking about money can help us make good choices and get ahead. Although you might wish you got going 10 years ago, your future you will be happy you did so today – you can bank on that.