Financial Self-Care: How to Take Control of Your Money…
Picture this: A life where financial stress is a thing of the past. Sound impossible? It's not.
Are you feeling overwhelmed by managing your financial responsibilities? Take a deep breath because you’re not alone!
While money isn’t the sole focus of our lives, it undoubtedly plays an important role in providing comfort and security for the present and future.
If you are looking to level up your financial well-being and embrace a new sense of empowerment, you have arrived in the perfect place. Keep reading to discover the essential steps to boost your confidence and control over your finances.
Feeling uncomfortable…and wanting to get comfortable with managing your money, begins with having a good plan.
If you are single and handling finances solo, it can feel daunting, especially if finance isn’t your comfort zone. But fear not!
On the flip side, sharing finances with a spouse or partner can get complex, potentially leaving one feeling vulnerable. As we age and our relationship dynamics evolve, financial management becomes more critical than ever.
Stick with me - I’m going to guide you on a path to boost your confidence and comfort level so you can achieve financial self-care.
There are many ways to get started with managing your money. Your first step is to set aside 30 to 60 minutes monthly for your Money Meeting date. And yes, it’s non-negotiable! Place it on your calendar each month.
If you are solo - this is your special Money Meeting date! Make it FUN!
For couples, it's a joint effort! Both partners need to be present for the monthly Money Meeting Date.
Setting the scene: Make it fun by planning for your favorite food (pick up your favorite take-out meal), drinks, and light music playing in the background - create an ambiance that excites you! Create a meeting mood that leaves you anticipating your date, building your confidence, and control in your financial future.
If we compare money management to managing our health, relationships, and career skills, it becomes less daunting, right?
Ever heard of the ostrich effect? It's like burying our heads in the sand to avoid unpleasant truths, such as avoiding credit card statements or tax deadlines!
But here’s the deal - deciding to take control of your money is cause for celebration! Be sure to make your monthly Money Meeting date fun - a celebration of your financial journey, keeping your head high and out of the sand! 🤣
Feeling intimidated? Don’t be. Here are 3 easy steps you can take right now to jumpstart your financial journey:
Ready to dive into the pool and start building a financial plan for you and your future? Ready? Let’s go!
I’m a firm believer in the power of a solid financial plan - it truly instills a feeling of well-being. Here’s why:
It clarifies your current financial situation and helps prioritize your personal goals.
It identifies potential risks that might derail your financial stability.
It establishes a roadmap for both accumulating and safeguarding wealth.
So, are you ready to unlock the full potential of your financial future? Let's demystify these concepts and shine a spotlight on why crafting a financial plan is absolutely essential for your monthly Money Meeting!
Financial Goal Setting and Management:
A financial plan helps individuals or households review, monitor, and articulate their financial goals and dreams clearly. Whether it's eliminating debt, saving for retirement, purchasing a home, or starting a business, a well-designed financial plan allows individuals to prioritize their aspirations and allocate resources accordingly. It provides a roadmap for achieving short-term and long-term financial goals effectively.
Risk Assessment and Management:
Financial planning involves assessing and mitigating various risks that could potentially derail one's financial stability. These risks may include market volatility, unexpected medical expenses, job loss, disability, or premature death. By identifying potential risks and implementing appropriate risk management strategies such as insurance coverage and emergency funds, individuals can protect themselves and their families from financial setbacks.
This is a heavy section to think about, but it can’t be ignored if it is valuable to prepare for the unexpected risks for you and your family.
Wealth Accumulation and Preservation:
A sound financial plan is instrumental in wealth accumulation and preservation over time. It involves creating a structured approach to budgeting, saving, investing, and managing debt. Through routine saving and investment strategies tailored to your risk tolerance and scope of time, you will be able to accumulate wealth gradually and work towards financial well-being.
Roadmap for Monthly Money Meeting:
Let's dive into the nitty-gritty of your Monthly Money Meeting and set the stage for financial success:
Scrutinize Your Credit Card Statements:
Scan through your credit card statements with a critical eye. Do you spot any subscriptions that need canceling? Any charges you don't recognize? Take charge and investigate by calling your credit card company!
Keep an eye out for duplicate charges. If you spot any, don't hesitate to reach out to your credit card company for clarification.
Ask yourself: Are the purchases on your statement aligned with your values and needs? If not, it might be time to reconsider your spending habits.
Review your bank and debt account balances:
Review your progress by assessing your bank and debt account balances. Are you on track with your savings and investment goals?
Double-check your general account balances to ensure everything adds up. It's crucial to have a clear understanding of your financial standing.
Set and review your goals:
Let's get SMART about goal-setting! Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
If your goal is to simply save money, it doesn’t align with the SMART criteria and therefore, isn’t considered a proper goal.
If you set a goal such as, ‘I want to save $2,000 by December 31, 2024’ you have established a SMART goal.
Set up a new savings account at your bank for each specific goal you set so you can measure and track your savings progress monthly with ease.
Set goals in ranges from one month, 6 months, or a year. It can be as far out as 5 years if that doesn’t overwhelm you. Your goals need to be actionable, specific, and NOT overwhelming.
Celebrate your victories and adjust your plans as needed. Your goals should evolve with you as you progress on your financial journey.
Time for optimization:
Explore high-yield savings accounts and fee-free banking options to maximize your savings potential.
Embrace automation by setting up deposits and payments. It streamlines your financial management and frees up time for what matters most.
Celebrate your commitment to financial self-care! It's not always easy, but it's incredibly rewarding.
Overall, building a financial plan gives us clarity, confidence, and control over our financial future, enabling us to make informed decisions and achieve financial success.
Remember, managing money may feel overwhelming at times, but it’s a journey worth taking. The more you learn and grow, the more confident and comfortable you’ll become in navigating your financial future.
So let’s continue to embrace the discomfort and empower ourselves to achieve financial well-being! It’s too essential to the future to ignore, right?!
[Essential] Insights on financial self-care:
Financial self-care isn’t about restricting your happiness - it’s about aligning your spending with your values and well-being.
DO prioritize spending time with friends over coffee or tea if it enriches your life. Continue to explore activities that align with your soul!
DO assess your spending habits and eliminate what doesn't resonate with your values.
Don’t persist in purchasing items that fail to bring you joy. Evaluate subscriptions and general expenses to ensure they align with your priorities.
Congratulations! You've taken the first empowering step towards financial self-care by learning how to take control of your money.
Now, it's time to turn the knowledge into action steps.
Start by scheduling your monthly Money Meeting and setting SMART goals to pave the way for financial success.
Remember, your financial journey is a marathon, not a sprint. 🚶
Stay committed, stay focused, and keep that sense of self-care burning bright within you! You've got this!