What is financial self-care?
Self-care is essentially any act done deliberately to take care of your overall wellbeing and mental, emotional, or physical health. For some, self-care looks like taking a walk, getting a good night of sleep, or reading a book. For others, it may look like journaling about your feelings and their goals. Regardless, practicing self-care is anything you do to alleviate stress in your life.
Financial self-care, more specifically, is focused on removing stressors on your financial situation. It can look like creating a weekly budget, making a plan to eliminate debt, regularly reviewing bank statements, and much more. Itโs no secret that your financial wellbeing has a huge effect on your sense of security and overall happiness. Hereโs how you can get started on incorporating finances into your self-care routine to support a healthy money mindset:
4 Ways to Practice Financial Self-Care
- Re-train your brain on your relationship with money
Evaluate your current spending and saving habits and take note of whatโs not working. Are you an over spender? Are you paying too much for services that just arenโt worth it? If youโre someone that pays for convenience, it may be time to take a step back and ask yourself if itโs really worth it. Start by changing small things to create new habits, like packing your lunch rather than buying or cutting back on some subscription services. After just a few months, youโre bound to be operating on a better budget and even have some set aside in savings.
- Set realistic and attainable financial goals
Once you find a budgeting plan that works for you, itโs time to focus on saving. Saving looks different for everyone, whether your goal is a new car, retirement, or an emergency fund. Whatever it is youโre saving for, make sure your budget reflects that. Saving automatically (yes, itโs possible) is that easiest way to do so. Work with your employer or your bank to set up automatic deposits to your savings account. This can be a specific amount every month or a percentage of your paycheck. Once that money is set aside, itโs less enticing to spend. Think โout of sight, out of mind.โ
- Take advantage of whatโs offered to you
Free money is a real thing, believe it or not. And if you havenโt taken advantage of it, well, what are you waiting for? Find out what your employer offers, like retirement matching or referral bonuses. If returning to school has been on your mind, ask your employer about tuition reimbursement. This is an excellent way to accomplish personal goals while not having to stress about the finances behind it. Some employers even offer reimbursement for things like gas or home office supplies. Donโt ignore employer perks because you donโt want to inquire about it โ youโll be leaving thousands of dollars on the table! Plus, who doesnโt want to get the most out of their job?
- Invest (in yourself)
Investing is frightening to most people. But, itโs one of simplest things you can do to set yourself up for success and financial security in the long run. For starters, open a Roth-IRA account and contribute to maximum allowed or what you can manage on a yearly basis. This is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. If you have an interest in the stock market, start by setting up a recurring investment in an index fund or exchange-traded fund (ETF).
Sometimes, investing in your future means investing in yourself now (and no, we donโt mean retail therapy). This can look like pursing another degree that will ultimately advance your career and higher your income. Or, it can look like purchasing a newer car that will have a longer life and be more reliable. Whatever it may be, be sure to weigh all the options and how they will affect your overall financial wellbeing now and in the future.
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