Sure, you’ve heard of buzzwords like work-life balance, self-care Sundays, and positive affirmations, but have you heard of “financial wellness?” Take a pause from your face masks and meditation pillows: There’s another form of self-care, and it just might change your life. A Bank of America survey found that over half of all companies now offer financial wellness programs. Major universities like UCLA also offer financial wellness programs. Even though corporations and major businesses are instilling financial wellness programs for their employees, it isn’t just corporate America lingo or a buzzword reserved for Wall Street employees and bankers. Many people neglect financial wellness, which is a critical part of self-care as well as physical health. This important aspect of self-care is essential and you can learn how to practice it.
What is financial wellbeing?
Simply put, financial wellness means having healthy finances. You feel prepared to handle any financial crisis, are in control of paying off debt, know what’s coming in and going out, and don’t feel stressed over your financial situation (no matter what income you make). But financial well-being does not end at having “enough” money and knowing what to do with it. Financial literacy and financial wellbeing are two different things. Financial wellness recognizes money is not the end goal (i.e. the end goal isn’t just to make a lot of it); instead, money is a tool we use to live our happiest, healthiest, best lives possible.
Money is a trading system. You’re exchanging your life’s energy for whatever you want to make your life happier, healthier, and better. Think about it: Money is simply an exchange for the most of your time, energy and passion. How you manage, invest, and spend your money not only dictates your future finances, but it’s also subconsciously sending a message to yourself about what your life’s energy is worth.
Why is financial wellness so important?
If you view your bubble baths and superfood lattes entirely separate from tax season and your IRA, it’s time you start looking at the big picture. Your well-being is like a pie chart. We all know the nutrition and fitness pie slices, as well as the stress-relief pie slices. You may even be aware that strong relationships are essential pieces of the pie. But finance is also a slice of your well-being pie, as it’s such a huge part of our lives.
Finance is one of the biggest stressors. As many of you know, chronic stress can adversely affect your health and well being. Financial anxiety can affect your spending habits and bank accounts, as well as other areas of your life (stress over large purchases, avoidance of necessary healthcare due to fear of the bill, relationships, etc.).
Beyond stress that comes with poor financial wellness, good financial wellness is a tool to help our lives be better; it’s knowing how to use the money we have for our well-being (and grow that money for more well-being). Think: achieving whatever makes us happy, whether it’s creating a home, taking care of a family, or having amazing experiences, as well as spending money on our health, whether it’s necessary healthcare, a gym membership, or regular acupuncture sessions.
The end goal isn’t actually to have a lot of money. The goal is to Spend a lot of money (and know how to spend it) throughout your life so you’re as healthy and happy as possible. I don’t mean you can spend all of your paycheck on Postmates and shoes. I mean that at the end of your life, you’ll be able to look back on many decades of experience, memories, and happiness that you achieved partly because of how you spent your money. Financial wellness does not include investing, saving or 401ks. It considers money a common stressor and also sees it as a tool that can help us be happier and healthier. The good news? You can add it to your self-care routine no matter what your income is or what financial situation you’re in. Here’s how:
Tips to improve your financial health
Budget based upon what brings you joy
Be thoughtful about how you want to spend your life’s energy. Does it work? It is really bring you joy to grab drinks with that friend you don’t have fun with or to buy the top you’ll never end up wearing? Managing your money based on what does and doesn’t bring you joy will reduce stress that comes with spending money on the vacations, items, and experiences that you truly love.
Educate yourself
None of my educations has led me to believe that a personal finance class was something I should take. Unskilledness can cause a lot of financial stress. What the heck are all these types of accounts, how do I pay off debt, and what can I actually “afford?” Simply educating yourself might take away a lot of stress, help you grow your money, and find out what you deserve. Talk to your university or employer to find out if they offer financial literacy programs. Take our Finance 101 online class or look at Ellevest which is dedicated to helping women manage money.
Invest in yourself
We’ve been talking about spending money, but money can also be invested. You can also invest your money in other things, such as a gym membership, buying an online course, or shopping for organic groceries. Another tip for financial wellness: The more money that you invest in something, the more likely it is that you will keep it as a habit. You can decide what your ideal habits are and then invest your money accordingly.
Make tracking your money a routine part of your life
PSA: If you’re not checking your credit card statements, checking account, and any other accounts or cards on a regular basis, you need to be. Make a finance review part of your weekly schedule. Set financial goals for the week by setting up a coffee date. Or, put on a mask and review your bank statements on Sunday evening. Not only can this reduce added stress by identifying credit card fraud ASAP or knowing if you’re close to your credit limit, but you’ll also be more aware of how your money is being spent and feel more in control of your finances.
Automated savings
Pay your past self first (debt), and then pay your future self (savings). If you’re having trouble saving money or want to start saving for those big life purchases that will make you happy, try to automate so you don’t have to think about it. Even if it’s just $5, set up an automatic deposit or transfer into a separate account from every paycheck. It’s kind of like setting short, easily attainable goals so you feel like you’re getting closer to what you want most in life, and it also brings clarity to know how much money you can spend on your day-to-day expenses and purchases to still enjoy the moment. It’s important to save as much as you can, but also to be able to spend it eventually. Don’t forget to actually spend on the things you really want.
Spend money to make your life better
Even if you don’t think you have any money to spend, is there any way to rearrange your budget for the things that will really make you happy? A facial can make you feel relaxed for days. If you find that a service like Instacart, Blue Apron, or other similar services, you should look into where you can get the money. It could be as simple as buying a Keurig rather than the $3.50 Starbucks, making your own lunch, or using your clothing budget.
Source: The Every Girl
