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Don't let your finances stress you out any longer! Learn how to take care of your money with these 5 essential tips on financial self-care.
You may already be aware of how important self-care is to your mind and body, aren't you? A short break from work or a relaxing massage could take some of the physical strain off your mind and body, but have you considered incorporating financial self-care tips into your routine as well? Money is frequently the source of a great deal of stress and anxiety, so taking care of your finances can also have a positive impact on your overall well-being.
Just like your mind and body are interrelated, in the same way, your financial well-being is intricately related to your physical and emotional well-being. This is where financial self-care comes into the picture.
Financial self-care is the effort you give to make specific plans and goals to create a better financial future, discover strategies to support a healthy money mindset, and concentrate your time and attention on your financial condition, among others.
When you practice financial self-care now, you lay the groundwork for future financial stability. Continue reading to learn more about the five practical and convenient strategies to exercise financial self-care.
But before that…
What Exactly is Financial Self-Care?
You need to spend a day vacationing, relaxing in the spa, and hanging out with your friends to stay on top of your mental and physical health (self-care). In the same way, if money matters were an individual, it too would require certain practices to stay at the top of its game.
Now, instead of relaxing in the spa, or splashing water in the pool, restraint in expenses, long and short-term future planning, and keeping an eye on investments are this individual's cup of tea.
This is financial self-care; it is a form of self-care that focuses on improving financial matters—instead of emotional and physical ones—to ultimately get better physical and mental stability and health. Everything from paying their daily bills to saving for a future goal is tough and stressful for a financially unwell person.
Financial self-care targets a person's overall financial health to nullify and prevent any existing money-related stress. It can also be defined as properly managing one's financial life while keeping both short-term and long-term objectives in mind.
You can consider you are financially self-caring when:
- You have total control over your daily expenses.
- You've set up an emergency fund.
- You keep track of your spending.
- You are debt-free and you do not require credit to meet your necessities.
- Your savings and retirement goals are within your grasp.
5 Tips To Practice Financial Self-Care
Following are five tips for practicing financial self-care:
1. Make an emergency fund: Your financial self-care path should begin with an emergency fund. An emergency fund is a savings account in which you save money for a rainy day. Assume your employer fires you.
Alternatively, you may have exhausted your health insurance coverage but still, have a medical debt. An emergency fund should be able to bolster such blows that life may throw at you.
2. Create a realistic monthly budget: Setting up a monthly budget that you can use to regulate where your money goes might prove to be helpful. It may sound tedious, but honestly, it will help you feel less bothered about your finances and alongside, keep you from spending your money recklessly.
For instance, you can use a budgeting tool to organise and manage your spending, income, and expenses. Realign with your inner beliefs to ensure that you are spending your money on a life you genuinely require rather than one you believe you want.
3. Set specific financial objectives for the quarter or year - Make objectives as to what you wish to achieve with your finances, how much you want to save, etc. Consider and journal about how these objectives went.
Save money each month for a treat, vacation, or other special occasion and make any bill payments automatic so you don't have to worry about missing deadlines and ending up paying penalties.
4. Educate yourself - there are numerous free financial resources available, so determine what you want to know and what you don't know and enhance your financial intelligence. Listen to podcasts on finance, money, savings and wealth-gaining strategies.
5. Borrow only when you can afford to and pay as soon as possible: Many people will require a loan at some point in their lives. If you utilise the correct form of credit and can make monthly payments, it's not always a negative thing.
Bad debt occurs when we desire items that we cannot wait to save for. However, it is critical to examine the repercussions of borrowing money, which include a worse credit score, increased outgoings, and loan interest.
You might want to face debt head-on by increasing debt payments and paying them off as soon as possible—don't merely ignore them in the hope that they will go away.
6. Review your balances: Taking time each week or month to assess your money and status is part of financial self-care. Even if you don't do anything, taking a few minutes to reflect on your financial condition and behaviour might provide a fresh perspective.
What Exactly Should You do When Reviewing?
- Verify your bank balances, including any joint accounts.
- Don't forget about your loans, savings and investment accounts.
- Check EMIs and credit card payments.
- Examine your employer's benefits that your corporation offers.
- Understand where your money went.
- Are there any outstanding bills?
- Have you gotten payment for all of your invoices?
- Which memberships and subscriptions should you discontinue?
- Is there a new objective you should start planning for and saving for?
What Are The Advantages of Financial Self-Care
The benefits of financial self-care are as follows:
1. You may plan for the future with confidence that you will be able to achieve your objectives.
You may project your income and saving capacities by practicing proper financial management, constructing a budget, and developing a savings strategy. This allows you to motivate yourself to be more careful in your budgeting and money management.
2. You can lower your overall stress level
Financial stress is the most common type of stress among individuals in India. While money cannot buy pleasure, it can buy you a more peaceful sleep at night and lower stress levels during the day.
3. You can better assist people who are important to you
To avoid creating new constraints or gaps as a result of excessive charitable giving, you should always contribute money within your current financial limits. However, if you manage your own money effectively, you can derive a lot of satisfaction from being able to assist people in need.
Those donations may also help you save money on your state taxes. And once you have a better understanding of all these, you can prioritize spending for your emotional health and put the hard-earned money to the best use.
When your finances are in good shape, it opens up new opportunities that were previously unavailable. You can take advantage of the opportunity to examine new employment or career changes depending on what you're most enthusiastic about, rather than what pays the most.
Financial self-care enhances both physical and mental well-being. Financial self-care is not a destination to reach, but rather an ongoing journey. Achieve financial wellness by using the Jar app which helps you automate savings daily so that you can derive a significant return over some time.
Explore the Jar app today on Apple's App Store and Android Play stores.