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The term “self-care” may conjure up thoughts of relaxing baths or massage parlors. But true self-care includes your finances, too.
“Self-care is taking care of yourself so that you look better, feel better and prepare for the future,” says Stacy Miller, certified financial planner and founder of BayView Financial Planning in Tampa, Florida. “Financial self-care is part of that. You’re giving your bank accounts face-to-face.”
Financial experts say that taking care of yourself financially starts with looking at your current financial habits, then moving on to creating a solid plan for the future. And like any skincare routine, everyone’s routine looks a little different.
Think about your past
Taking some time to think about your “money story,” or how you grew up thinking about money, can be a good place to start, says Lindsey Konchar, a Minnesota financial expert. “Were your parents comfortable with this? Have you been taught anything about money?” he suggests you ask yourself.
From there, you can try to change the way you talk to yourself about money, such as from thinking “I have bad money” to “I’m learning about money and I’m happy to be in this situation.” financial innovation. journey of care,” Konchar adds.
Mykail James, a financial educator in Washington, DC, known to his social media followers as “Boujie Budgeter,” says cultivating a sense of gratitude can also be beneficial. “Affirmations can help overcome negative thinking,” he says. He suggests things like, “I deserve the money I get for work” or “I deserve financial security.”
(Kimberly Palmer shares how he practices financial self-care)
Let your goals inform your habits
James likes to choose specific goals that he can focus on at any given time, and then discuss how to achieve them. For example, you like to look at listings of million dollar homes posted online and calculate how much you will need to find them to be able to afford them. He says: “That kind of test helps me to set goals for myself.”
Taking tangible steps toward your goals helps reduce stress and anxiety, says Robert Stromberg, CFP and founder of Mountain River Financial in Abington, Pennsylvania. Since goals vary greatly from person to person, the steps also vary, but usually begin with a close examination of your overall financial picture, including recent spending and saving behavior.
Look at spending
Financial instruments can help with that type of financial analysis, says Maggie Klokkenga, CFP and financial planner at Abundo Wealth in Morton, Illinois. “The first step is to track your expenses. It’s like stepping on a scale. No one wants to look at it, but now you can know your numbers,” he says.
“Funding” in that way can encourage other changes in your spending to better align with your goals, he adds. Using apps that organize your spending into different categories and flag deposits or unusually large amounts can also help.
“When people realize their numbers and start taking action with purpose, they feel in control,” Klokkenga says.
Increase savings
Stromberg notes that “most of the clients I work with don’t save a lot of money.” He suggests prioritizing an emergency fund, which can ideally cover three to six months’ worth of expenses, as well as saving for any big known expenses, such as a new car.
Being aggressive about saving “gives people a lot of comfort,” he says, because you know you’re prepared for different situations. Saving money in a high-yield savings account insured by the Federal Deposit Insurance Corp. allowing it to continue to grow until you need it.
Save what you can, even if it’s less than the recommended amount, James recommends. “A little savings is better than no savings, so start wherever you are and you can grow it over time,” he says.
Setting up your own savings account so that a certain amount is transferred to your checking account or paid into your high-yield savings account each month can reduce stress, Konchar says. . Anything you can do to reduce the mental burden of managing your money allows you to use that mental energy for other things, he says.
Use employee benefits
Contributing money to an employer-sponsored retirement plan like a 401(k); providing financing through approved financial instruments for health care and child care expenses; and signing up for any employee benefits such as disability and life insurance can also contribute to your overall financial well-being, says Kevin Keller, CEO CFP Board, a financial planning organization.
He says: “Customers can enjoy life today and feel comfortable, knowing that they are on the way to achieving their life goals.
Any good self-care routine also includes small daily pleasures, too, which is why James recommends giving yourself some kind of reward, such as a leisurely walk or ice cream, after ‘to work with your finances. He says: “A good presentation makes people continue to do something good.
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Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.
The article 5 Ways to Practice Financial Mindfulness originally appeared on NerdWallet.
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