As a Wellbeing Coach and Retirement Consultant, I often talk with people about their Financial Wellbeing. Simply put, financial Wellbeing means effectively managing your economic life.
Over the years, I have found that many of us simply do not have a good money-mindset. Instead of treating money as a powerful tool, we infuse our purchasing decisions with emotions. Learning to manage money wisely empowers us to build financial freedom.
If we take time to think critically before making a decision about money, we’ll have a stronger financial stance. This is what I call financial self-care, and here’s seven simple ways to start incorporating this habit into your life:
1) Set money goals. This keeps you working toward a brighter future and thinking from a financial standpoint. Make sure short-term goals support long-term goals!
2) Take it slow. Avoid buyers remorse by giving yourself time to consider whether your purchase is compromising your financial goals. When in doubt, seek help from an expert!
3) Communicate with your family. Financial stress can warp your relationships. Make sure your household budget meets everyone’s needs – have a discussion about how things are working, and what it will be like when your goals are met.
4) Minimize monthly expenses. The lower your cost of living, the easier it is to meet your financial goals. Stress will be minimized, too, because you’ll know your monthly bills are paid AND you’ll be able to build your emergency fund, in case your income changes.
5) When possible, use cash. A budget is (usually) a HUGE part of maintaining financial wellbeing. Most financial coaching clients seek help with establishing and sticking to their budget. The top way to keep stress low and stay on target with your budget is by using cash for everyday purchases.
6) Automate! Establish a default system for making non-cash payments. Knowing that all of your payments are scheduled regularly lessens daily money worries and minimizes the chance of paying any late fees.
7) Remember: We don’t get bored with fond memories like we do with tangible objects. Material items lose their novelty, but when we purchase meaningful experiences, it buys us memories that continue to grow. This means we get more out of every dollar we spend.
Using these 7 tips can help us develop and stick to a financial self-care plan. While there are bound to be slip-ups and set-backs, working on building these habits helps bring more awareness to our spending, and keeps us focused on what’s really important.
Have your own financial self-care strategy? Share it with us below!!
If we take time to think critically before making a decision about money, we’ll have a stronger financial stance. This is what I call financial self-care, and here’s seven simple ways to start incorporating this habit into your life: