How To Practice Financial Self-Care In 5 Steps
This post is about the best way to improve yourself financially.
What's good, my dolls? I want to keep it all the way real with you for a minute, financial self-care is very important!
When it comes to financial health, it's all about staying on top of your money game. As a millennial woman trying to make moves on a budget, you know that managing your finances can be straight-up stressful. But don't trip, because financial self-care is here to help you take control of your money, build up that credit score, and secure that bag for the long haul. So get ready to level up your money habits and step up your financial game, because I'm about to drop some major knowledge on how to take care of your money and your mental and physical health at the same time.
Financial self-care means treating your money like you treat your body and mind. You gotta be aware of your spending habits, set some money goals, and map out a plan to make it happen. Trust me, taking care of your finances in this way will help you say goodbye to financial stress, and hello to building some serious financial security. Plus, with a healthy money mindset, you'll be well on your way to achieving greater financial success.
Let’s get into it…
Step One- Set Money Goals
When it comes to financial self-care, the first step is to set some money goals. It can be as easy as putting away a little something-something each month, or even smashing that pesky credit card balance. By setting goals, you'll be able to keep your eyes on the prize, stay motivated, and have a clear-cut plan for getting where you want to go financially.
Examples of setting money goals could look something like this:
Save 10% of each paycheck
Pay off $3,000 worth of credit card debt within the next 6 months
Build an emergency fund with a minimum of three months' worth of living expenses
Contribute to a retirement account, such as a 401(k) or IRA
Save up $10,000 for a down payment on a home or a car
Create a budget and stick to it to reduce unnecessary spending
Increase income through side hustles or seek out higher-paying job opportunities
Pay off student loans or other types of debt
These goals can provide direction and motivation for someone who wants to improve their financial situation and achieve greater financial health. Setting specific goals makes it easier to track progress and celebrate small victories along the way.
Recommended Read: Breaking Free: Money-Saving Challenges for Millennial Moms
Step 2- Create a Budget & Keep Track of Your Spending
Aight, now that you've got your money goals locked down, it's time to get real about your cash flow. Creating a budget and keeping track of your spending is the name of the game. You gotta know where your paper is going if you want to make it rain in the right places. You can use a spreadsheet or a budgeting app to stay on top of your expenses or check out your bank account balances and credit card statements on the reg. No biggie, just stay woke.
I suggest a zero-based budget to make things easier. It looks a little something like this:
Income:
Salary: $4,166 per month ($50,000 per year)
Expenses:
Rent: $1,200
Utilities: $150
Phone and internet: $100
Car payment: $300
Car insurance: $100
Gas and maintenance: $150
Groceries: $300
Dining out and entertainment: $100
Personal care and clothing: $100
Student loan payment: $250
Credit card payment: $200
Emergency fund savings: $100
Retirement savings: $400
Total expenses: $3,350
Remaining income: $816
With this zero-based budget, there is $816 remaining each month that can be put towards contributing to a retirement plan and paying off debt more aggressively while also building up emergency savings. Give each dollar a name until the remaining amount is $0. By tracking expenses and sticking to a budget, it's possible to reduce unnecessary spending and achieve financial goals. Remember, every small step counts!
Recommended Read: 30 Creative Ways To Save Money in 2023
Step 3- Create an Emergency Fund
Hold on, there's more to consider. You need to have an emergency fund at your disposal. Unexpected expenses can arise at any moment and cause financial havoc. To avoid this, start saving a portion of your income each month and aim to build up at least three months' worth of living expenses. This will bring you peace of mind and help your bank account stay healthy.
Step 4- Educate Yourself
Last but not least, improving your financial literacy is crucial to achieving financial wellness. Understanding financial products such as savings accounts, retirement accounts, and insurance products can put you ahead of the game. Don't worry, you don't need to be a financial expert to start learning. There are plenty of online resources to explore, such as the Consumer Financial Protection Bureau or third-party websites. You can also seek the advice of a certified financial planner or financial advisor to gain insight.
Step 5-Mindset Shift
In addition to the practical steps mentioned earlier, cultivating a healthy money mindset is essential to achieving financial self-care. A positive money mindset involves focusing on the benefits of good financial habits rather than dwelling on financial worries or anxieties. Surround yourself with supportive friends and family members who encourage your financial goals, and limit your exposure to negative influences, such as social media or conversations about money problems.
Taking care of your finances can be a form of self-care that has a positive impact on your mental and physical well-being. Just like traditional self-care activities such as taking bubble baths or doing a face mask, prioritizing your finances can reduce financial anxiety and give you a greater sense of control over your financial situation.
Incorporating financial self-care into your daily routine can be simple and enjoyable. For example, setting aside a regular "money date" to review your finances or creating a vision board or to-do list for your money goals can be great ways to keep yourself on track. Celebrating small victories along the way can also help you stay motivated and positive. Remember that even small steps can lead to significant results in the long run.
Recommended Read: 6 Real-Life Money Lessons You Should Know As An Adult
Money Takeaway
Are you ready to take control of your financial future? Prioritizing financial self-care can make a huge difference in your overall well-being. It's never too early or too late to start, and every little bit counts. By making financial self-care a priority, you can achieve greater financial health, reduce financial stress, and build a more secure financial future.
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