5 Tips for Financial Self Care
Today is world Mental Health Day, which means self-care is on everyone’s minds. Mental health is more than just physical and emotional well-being, as it is directly impacted by your financial situation and spending habits. And self-care is more than eating a salad and taking a bubble bath, it’s determining your needs and goals and making them happen, because you know you are worth it! This might lead you to wonder, how can I start saving, how should I invest, and how do I stick to a budget? Well, lucky for you we have 5 quick tips for how you can start securing your financial future!
1. Fill Your Emergency Savings Bucket First
This will reduce your overall amount of stress related to money. Banking enough to cover 3-4 months of your normal expenses means you have a safety net in case of job loss. You can also dig into this fund for unexpected accidents or emergencies – which while never fun – is better to be prepared for so they don’t bring you into debt.
2. It’s Not About What You Make, it’s About What You Keep
There is always more you can buy. Millions of products and services are begging for you to choose them, so it’s no wonder an increase in income is often followed by an increase in expenses through seeking a higher quality of life. But research shows that your savings account is a greater source of happiness than your spending.
3. Prioritize Long Term Goals Over Short Term Gratification
What you are spending your hard-earned money on affects your overall satisfaction. You have a unique value system compared to everyone else, but data suggests that some expenses are likely to be more fulfilling than others. Spending on experiences rather than material goods shows higher satisfaction, as well as saving for future big goals.
4. Give Back and Take Care of Others
It feels good to know you can be there for those who depend on you. Being financially secure gives you the resources to help those who need it, be it your family, friends, or a cause you believe in. Find a percentage of your income that you’re comfortable consistently using on others, and you will see how it can transform your sense of worth and feeling of positively contributing to society. Plus, oftentimes donations can be subject to tax write-offs.
5. Excess Cash Loses Value Over Time
Beyond your emergency savings – which should always be keep in its most liquid and accessible form – uninvested cash is actually losing value due to inflation. Spending power per dollar is slowly dwindling away the longer it sits. If you invest in a diversified way and take time to understand what you’re putting your money into and why, you can grow your money and start to make it work for you, not the other way around.
If you feel inspired to start prioritizing your financial mental health, make an appointment with one of our advisors to help keep you on track with your unique financial goals!