4 Financial Self-Care Strategies And Good Practices To Have

Discover three essential financial self-care strategies and good practices to strengthen your financial well-being and secure a brighter future.

Whether we like to acknowledge it or not, our finances impact our overall well-being. When our finances aren’t in order, we’re more prone to financial stress, which impacts our mental and physical health. According to the cognitive appraisal theory, we can perceive financial stress as a threat, which can trigger anxiety and negative emotions. Without acknowledgment and action, these feelings can lead to countless sleepless nights, increased irritability, and even physical symptoms such as digestive issues and hair loss.

Practicing self-care regularly will not only help our overall well-being but can positively influence our financial decision-making as well. Through self-care practices such as mindfulness, meditation, or journaling, we can approach financial decisions with clarity and rationality. If practiced consistently, the below techniques will also build financial resilience, creating long-term positive habits that we can teach to those around us, building up not only ourselves but also our families and community.

What Is Financial Self-Care?

Financial self-care is one of the 08 dimensions of self-care that focuses on ways you develop good financial habits for investing, saving, and managing your money. It recognizes that your financial status and well-being can affect your mental health and happiness. In financial self-care, you practice good financial habits such as setting goals, budgeting, using the 80/20 rule, and making informed financial decisions. Learning to take care of your finances can greatly reduce stress and make spending money not seem so daunting.

Financial Strategies To Practice Today

Avoid The Law

If you are trying to save money for the future then you are best avoiding any and all issues with the law. This can result in pretty hefty fines and lawyer fees if it goes that far. Consider what you need money for and how you are going to get it, if you turn to something like selling yourself for money then this is illegal in most states. If you get caught then you might need to splash the cash on a prostitution lawyer. This will have a huge impact on your financial well being and mental health.

Create a financial plan and budget

The first step in your financial wellness journey is to create a financial plan and a budget. Taking the time to reflect on your goals will help provide clarity and motivation on tough days. Goals can range in size and motive, from saving for a trip to the beach to getting out of debt, saving for a new home, or starting a business. Consider your aspirations and focus on the mid-long term. Nothing is set in stone forever – your plan will adapt as your life changes, but creating a plan will help you focus on what matters most to you. Set actional steps and start to put your money towards them.

Creating a budget is a necessary step in your financial journey. Without one, how will you know where your money is going? While budgets have a bad reputation, they’re simple to create and fun to manage once you start. Tracking your expenses and seeing your numbers improve is very motivating. If you haven’t created a budget yet, I’d highly recommend the 50/30/20 budget. 50% of your money is dedicated to needs, 30% to wants, and 20% to debt management and saving. Don’t be discouraged if you initially skew too much to one category; use these figures to find financial balance. I recommend putting as much as possible into debt management and saving, as this category will lead to the most financial success and, ultimately, retirement.

Review your financial plan and budget often to ensure you’re still on track. Adjust as needed, but focus efforts on meeting or exceeding your goals.

Pay off debt 

While it may not be possible to avoid debt at this stage of your life, do your best to avoid it like the plague, especially high-interest debt such as credit cards. Debt is a known trigger for many and can cause serious damage to your financial and emotional well-being. Take the time to assess your debt and prioritize them based on the interest rate. High-interest rates use compound interest against you, increasing the balance exponentially.

One avenue to explore is debt consolidation if you carry high-interest debt. Two examples are personal loans and balance transfer credit cards. Personal loans are a great way to access a lower interest rate and a standard monthly payment, especially if you carry a larger debt and need time to pay them off. If you plan on paying off your debt over the next 12-18 months, consider a balance transfer credit card. Many offer 0% promotional offers for 12-18 months, allowing you to use the card against existing debt. Make sure to read the fine print, as some have restrictions on the type of debt that can be paid and the amount. Also, these cards carry high-interest rates after the promotional period ends, so make sure you have a zero balance every month at that time.

Save for the future

One of your financial priorities should be saving for the future, as we have no idea what is coming around the corner. Start by creating an emergency fund, usually recommended at 3-6 months of living expenses, to handle anything unexpected that may happen. This includes everything from a flat tire, or broken air conditioner, to a hospital visit. Automate your savings to pay yourself monthly without thinking about it. If your employer offers a retirement plan contribution match, take advantage of this free money to save for your retirement. Your future self will thank you.

If you’re struggling with not enjoying your money now, think about it as saving for future self-care. You can set yourself up for a lot tomorrow by putting off a little today. Remember your financial goals – sacrificing today to fund that dream vacation in two years will be well worth it.

The above practices should reduce stress and cultivate a sense of accomplishment and empowerment.

Self-care practices for financial well-being

#1: Carefully monitor your stress levels

Financial stress can be overwhelming, affecting our mental and physical health. Prioritize self-care and focus on stress-reducing activities in your weekly routine. A few techniques include time outdoors, yoga, meditation, and deep breathing exercises. Focus on what brings you joy, such as reading or listening to music. Regular exercise is critical to reducing stress.

When it comes to exercise, there are many free (or cheap) ways to get your sweat on. If you live in a nice climate, get outside and walk or run in your local area. Do body workouts such as pushups. There isn’t any need to spend $100 per month for a gym membership, but if that’s the only way to get motivated to work out, it may be worth it. Strike a balance between your overall health and financial wellness. If you decide to spend on a gym, consider more affordable gym clothes and ditching the after-workout smoothie (or at least make it at home).

#2: Take time to self-reflect and set goals

Self-reflection and goal setting may be the most important self-care practices. Being mindful of our needs, wants, and motivations helps provide clarity and purpose to our lives and enhances financial wellness. While practicing self-reflection, reflect on your financial habits, beliefs, and behaviors. Why do you make certain purchases? What motivates you in your career? What do you see for your future?

Are there purchases that you know you need to make that you haven’t gotten around to yet? If so, identify them and start looking into the best course of action. For example, if life insurance is something you don’t yet have, you should research various companies, checking out reviews of PHP Agency and others like it to get the best deal. Once you’ve done this, that’s one goal ticked off your list.

As you create your financial vision, set realistic and achievable goals. We may lose out on the journey when we are focused strictly on the end goal. Each milestone is important, and taking the time to celebrate each one is critical. Revisit your goals often to ensure they align with your core values and vision for the future. If needed, adjust them. I would give it an honest try. For example, once you choose a budget strategy, stick with it for a few months before trying a new one. Financial wellness takes time and can be uncomfortable at the start.

#3: Prioritize work-life balance 

Creating space between your work and personal life is essential for your financial and personal well-being. Easier said than done, right? This can be especially hard if you’re working multiple jobs or are balancing multiple priorities, such as running a family. My wife and I both work and are newer to parenthood – I had no idea how much time and effort it took to raise a toddler! From doctor’s visits to school events, parents are constantly double or triple-booked throughout the day. Not to mention the mental load it takes to keep up with everything for everyone, another reason to do everything that you can maintain a healthy work-life balance is so when there is downtime, you can stop and enjoy it.

Establish a dedicated time for self-care activities and with loved ones when possible. If you have a hobby, take some time to continue pursuing it. This will help cultivate a fulfilling and balanced life, positively influencing your financial decisions. If possible, consider pursuing a work-from-home job. Working remotely has reduced time spent preparing for work, such as commuting, packing lunches, and ironing clothes. This extra time has allowed me more time to spend with my wife and daughter, along with helping other parents better understand their finances and create generational wealth.

A final thought

Taking care of yourself is an investment – not only physically or mentally, but financially. You will positively impact your overall well-being with a dedicated focus on the above financial strategies and self-care practices. You will also build financial resilience and a healthier relationship with money. Give yourself grace on minor slipups, celebrate the daily wins, and focus on the future.