Money is good; having it gives you lots of freedom with your time and energy. It frees you to enjoy the things that truly give you joy. It opens doors to multiple options for living.
This is why I feel it’s such an essential part of self-care; it deserves its own place. Money is a tool to be used anyhow we want, and we must realize how much power we have over it and channel it appropriately, Lest we run the risk of letting it become the saddest and most destructive tools ever.
While most people tend to think of self-care as activities like meditation, exercise, and healthy eating, it’s important to note that financial management is also a crucial aspect of self-care.
Managing your finances can be challenging, especially if you’re not used to it. However, taking care of your finances can significantly impact your life, both in the short term and long term.
In this post, we’ll explore why financial management is a form of self-care and how you can take care of your finances to improve your overall well-being.
Let’s discuss making informed decisions about spending and saving money.
Where your money goes shows you so much about what you value in life.
“Why should I bother, I don’t have much.”
Some reasons why you should bother are here below:
1. It reduces stress and anxiety: Financial stress can be overwhelming and can lead to anxiety and depression. By taking care of your finances, you can reduce the stress and anxiety that comes with financial uncertainty.
2. It improves your overall health: Financial stress can also lead to physical health problems, such as high blood pressure and heart disease, autoimmune disorders, and neurological and gastrointestinal conditions. You can plan better for medical cover and emergencies. Save yourself the medical expenses, look at your transaction history today.
3. It helps you achieve your goals: Whether it’s buying a home, starting a business, or travelling the world, managing your finances can help you achieve your goals and live the life you want. Who doesn’t want to live the life of their dreams? Taking care of your finances ensures that you have an eye on your big picture at all times.
4. It gives you peace of mind: You stop playing catch up with your bills and living in the fear of bounced cheques or transactions. When you know that your finances are in order, you can have peace of mind knowing that you’re prepared for whatever life throws your way, well most of it.
Getting ahead of things, here are some tips that you may find useful.
Be sincere with yourself, grab a drink and some snacks and open your bank apps, open a fresh page on your documents or good old A4 paper, and make a log of where your money went in the last 3 months or 6 is even better.
Classify into categories.
Here is a financial roadmap to help with your financial planning.
1. Create a budget: A budget is a plan for how you will spend your money each month. Creating a budget can help you stay on track and avoid overspending. Now you know what your pattern of spending is, ensure you make provisions for the important things, then if there is extra, put in some enjoyment stipend for yourself
2. Keep tracking your expenses: Keeping track of your expenses can help you identify areas where you can cut back and save money.
3. Save for emergencies: Emergencies can happen at any time, so it’s important to have an emergency fund to cover unexpected expenses. My advice is to have an accessible saving account for this so it can serve its purpose. Most financial advisors will say the equivalent of 1000 dollars is adequate, but I say if you can have half your income as an emergency fund. It can be saved over time, so put a standing order on your account to go to this emergency fund.
4. Pay off debt: Debt can be a major source of financial stress. Paying off your debts can help you reduce stress and improve your overall financial situation. Have you heard about the debt snowball? Or debt avalanche? These are two popular methods for paying off debt.
5. Invest in your future: Investing in your future, such as saving for retirement or investing in stocks, can help you achieve your long-term financial goals. This only makes sense of you have no debt clawing at your shoes and you have a full belly and a roof over your head.
Look closely at how you feel about this process; what does money represent for you? Safety, self-esteem, security, class etc. Take note. See what falsehoods may be leading you down the wrong path financially. Are you spending more to keep up, or are you genuinely spending on things that give you joy?
Be sincere and open with yourself(grab a stronger drink if you must) hahahahaha.
Finance gurus advise splitting your monthly income into
- Bills/expenses/debt
- Saving
- Investment
Depending on what is comfortable for you, allocate your income to these 3 sections.
See how you do and adjust as you go along.
Discussing finances is an important aspect of relationships; know where your partner is with their finances, and maybe you both can learn together.
One of the biggest influences on our finances is our relationships with partners, family and friends.
Be mindful that you are not being abused, and know exactly what is going on with your money. No one that truly loves you will be offended that you ask about the money you have entrusted them with.
31.9% of women complain that they have been financially abused and coerced into leaving their money with their partners.
By managing your finances, you can reduce stress and anxiety, improve your overall health, achieve your goals, live the life of your dreams, and have peace of mind.
Remember to create a budget, track your expenses, save for emergencies, pay off debt, and invest in your future.
See you at the top of wholehearted living.
Stay wholesome
Stay authentic
Be yourself and keep getting better at it.
Live wholeheartedly,
Amaka
