We all know how to practice self-care. Drink lots of water, break a sweat, wash your face, and maybe light a candle if you’re feeling bougie.
These practices are meant to bring about increased self-confidence, foster our sense of self-love, keep us grounded – overall, ease our minds and destress our days.
But you know what the self-help blogs have never mentioned?
I can be moisturized, in shape, and hydrated beyond recognition and still constantly worried about paying next month’s gym membership fee. Or wondering if I’ll be able to afford a midnight visit to the vet the next time my dog eats an entire bottle of melatonin.
This is where financial self-care comes in.
Taking control of your financial situation supports a healthy mindset towards money.
While prioritizing money above all else isn’t healthy (nor does it sound very pleasant), everything in moderation – understanding your finances and taking steps to improve them will significantly reduce your daily stress intake.
In fact, setting a budget and creating a plan for a secure financial future actually DECREASES the amount of time a person spends thinking about money.
And, less financial insecurity = less stress!
Here are some financial self-care strategies you can implement today.
1. Ditch the Fear
The first and most beneficial thing you can do to change your relationship with money is stop being afraid of losing it.
I’m going to let you in on a little secret: You will.
Whether through investing and trading, because of indulgent spending, or due to an unexpected expense – you’re going to lose money over and over again for the rest of your life. BUT, you will also always have opportunities to make more.
Being afraid of risking money or always worried about not having enough directly impacts your ability and willingness to grab on to opportunities to increase your wealth.
So, take a breath and remember that today’s loss on a trade or tomorrow’s lunch out with friends is not going to define your financial future.
2. Speak Up
A 2018 study found that 70% of people are too ashamed or embarrassed to talk about their financial situation. This means 7 out of 10 people are so worried about sounding uneducated, irresponsible, or ignorant on the topic of money they simply ignore their questions and concerns.
Acknowledging what you don’t know – or addressing a bad situation you may currently be in – is the ONLY WAY to learn and improve for the future.
So, bring it up (even if it feels uncomfortable). Ask what the difference is between a traditional and a Roth IRA, tell your best friend you’re struggling to get out of credit card debt – chances are you’ll either a) get an answer or b) find out the other person feels the exact same way.
And, if you aren’t sure where to start – ask us. The Tiger-Wolf team is more than happy to help you navigate the financial world.
3. Don’t Think of it as Money, Think of it as Freedom
Freedom to go on that trip, or buy those shoes, or give your mom the gift that’s been on her Christmas list for six years running.
When you start preparing your budget, the best motivator will be the goals you have in mind. Are you hoping to retire early? Do you want to be able to buy all organic groceries? Do you want to pop expensive champagne on your next birthday?
Don’t just write up a budget and expect to stop frivolous spending overnight because the calculator said you should. Take the time to sit down and really lay out what you want for yourself and why you want to be financially secure. Having concrete, realistic goals will be the foundation for following through, long-term, on creating your ideal situation.
4. Get Started
You can’t make progress until you make the first move.
Write down your goals (short and long term!), break down your spending habits, estimate your overall income – and come up with a plan.
Take note of where you can cut back on spending and do the math to figure out exactly how much you would save by doing so.
START INVESTING. While it may seem counterintuitive to start putting money away when you still need money right now, think of it this way; say you put $10 a week into a Roth IRA. Historically, Roth IRAs have seen between 7% and 10% annual returns. In ten years, your account would be worth (at a 7% rate of return) over $6,600 – and you would have invested into it only $4,800. I need to stop using Uber Eats.
If you need a place to start, click below to download our (free) trade log, budget calculator, and investment management spreadsheet!
Budget Calculator Spreadsheet
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