Self care should be a cornerstone of your weekly routine. Your cup needs to be full before you can pour the most for others. And a big part of filling your own cup is practicing financial self-care.
Financial self-care also works wonders for your mental and physical health! When your wallet is fit and healthy, there’s way less “drag” in other areas of your life.
At its core, self-care is looking out for yourself, so that you’re able to show up as your best version, and be the best person for others. With money being one of the biggest stress factors in people’s lives, practicing financial self-care can make you a stronger person today, and a more generous person later.
How to Practice Financial Self-care
It’s not always easy practicing financial self-care. But the small sacrifices you make will lead to huge freedom and rewards in everyday life. We’re not talking about grinding yourself into oblivion, or overworking to retire early. In fact, practicing financial self-care and mindfulness when it comes to your money can help you to spend more time and cash on the things you truly care about.
Through financial self-care, you can find a balance between life and money that leaves you emotionally fulfilled and financially sound. Here are some ways to start practicing financial self-care in your everyday life!
1. Find your “craft beer equivalent”
On our podcast, Matt and Joel like to enjoy a craft beer while recording each episode. Even though these beers may be overpriced and considered a “luxury”, they do because they enjoy it, but also to remind everyone it’s OK to spend money on the things you love while also saving and preparing for the future.
Treating yourself (in moderation) is a good thing and can help sustain your ability to make wise financial choices over time. So, one of the best ways to practice financial self-care is to find your “craft beer equivalent!”
Try this: Think of something that you really value, and feel is worth spending money on (even though others might not understand). That’s your craft beer equivalent!
Treating yourself to this luxury while also pursuing your biggest money goals helps you enjoy the journey more. You’ll feel more motivated, rewarded, and happy enjoying the fruits of your labor, knowing that you’re also building wealth over time.
So, ask yourself – what are some things you care about that you can include in your budget without disrupting your saving and retirement investing? Is it travel? Good coffee? Concerts?
Pinpoint those things that get you excited about getting out of bed in the morning and intentionally spend more on those.
2. Set exciting (and realistic) goals for the future
While good financial habits can carry you far, setting specific money goals that get you excited is a great way to attack your finances in a more focused way.
It’s tough to come up with a plan for the future when you’re constantly rushing around. And it’s no surprise that without a plan, many people don’t accomplish the things that they dream of.
So do yourself a favor and carve out some time to come up with a few money goals. They should be specific, realistic, and FUN!
A good place to start is by journaling to find your “why” behind money. This process helps you create goals that you truly value. Here are a few questions you can ask yourself to better understand your relationship with money:
- What things do I value in life? What do I not value?
- What does the perfect day look like for me?
- Where do I see myself in 5 years? In 10? In 30?
- What beliefs about money do you feel are holding you back?
- What is one goal that you could realistically accomplish within a 1 year time frame that would get you closer to your biggest money goals?
Asking yourself these personal questions can spark some truly exciting conversations and goals. And all that motivation and encouragement plays a big part in financial self-care.
3. Negotiate your bills
First off, if you haven’t set all your monthly bills to auto-pay, do it now. Putting your financial life on auto-pilot saves you time, mental energy, and protects against late fees and interest.
Next, set aside an afternoon to call up your insurance, phone, cable, and internet companies and ask them if they have any new customer promotions you can take advantage of. This single afternoon of phone calls can save you hundreds, maybe even thousands of dollars each year. It might not seem like it, but all bills are negotiable.
By the way, if the representative on the phone rejects your first request, be sure to ask for the customer retention department. They may have extra authorization to give incentives and can work wonders.
If you’re unable to get bills lowered, don’t sweat it. It’s always worth trying and asking for. Bill negotiation is a form of advocating for yourself, which is really empowering. This practice bleeds into other areas of your financial life, boosting your confidence and self worth.
Plus, you’re freeing up money for pursuits you care about even more.
Oh, and don’t ever feel bad about negotiating lower prices. It’s your money! Protecting where you spend those precious dollars is a form of financial self-care.
4. Save just 1% more
If you practice a new skill and get just 1% better every day, by the end of the year you’ll be 37 times better than when you started!
A 1% difference can have a huge impact on your finances as well. For example, choosing to pay off a $400,000 mortgage by paying just 1% more than the minimum payment each month, you’ll save nearly $14,936 in interest over the life of the loan!
And, the power of investing just 1% more into your retirement can be tremendous. For example, investing 15% of a $70,000 salary will yield you $1,232,482 after 30 years.
However, if you were to up that contribution to 16% (just ~$13.46 more each week), you’ll have $1,313,178 after 30 years. That’s over a $100k difference!
So whether you’re saving for a short term goal like a vacation, or trying to catch up on retirement contributions with your 401k, bump it up by just 1%. You’ll reach your goals faster, and it can make a real impact in the comfortability of your retirement. Chances are, you won’t even feel it in your monthly budget!
5. Pick up a frugal hobby
Practicing financial self-care is all about striving for a happy and fulfilled life. Sometimes that means spending money on yourself, and other times it’s not about money at all. It’s about staying active. As it turns out, meaningful hobbies you enjoy are tied to your happiness and wellbeing!
Wes Moss, author of “What the Happiest Retirees Know,” reports that on average, the happiest retirees have an average of 3.6 “core pursuits”. These are essentially hobbies that retirees are super into.
But you don’t need to wait until you clock out on your last day at 65 to start enjoying the many mental and social health benefits of hobbies! In fact, we’d encourage you to start pursuing hobbies now, so that you have something to retire to.
Hobbies don’t have to be expensive either. In fact, some of the best hobbies (like outdoor sports) are cheap or even free! Hiking, gardening, reading, or these other 12 cheap hobbies can keep you entertained and feeling good without breaking the bank.
6. Try positive money affirmations
So much of managing your money is about mindset. It’s hard to make a positive impact on your finances if you truly believe that you suck at money. Or any other totally false beliefs for that matter.
One prominent false belief is “I’ll never get out of debt” or “I’ll never have enough money to retire.” A big part of financial self-care is working towards changing those negative money beliefs into more constructive ones!
One good way to start this mindset shift is to practice saying or writing down positive money affirmations. I know, it sounds cheesy, but when you repeat positive affirmations it will interrupt any negative thinking cycles and train yourself to notice negative self talk.
Repeating the same statements over and over subconsciously boosts your self confidence over time. And this majorly helps when making financial decisions and pursuing your bigger money goals in life.
Here are a few positive money affirmations you can start with!
- My finances are within my control.
- I have the power to change my financial situation.
- I work hard and deserve the money I earn.
- All my hard work is growing wealth for the future.
- I am responsible and make good financial decisions.
- The money choices I make are in line with my life goals.
- I can make the money I need to live a comfortable life.
Pro tip: Go to the library and borrow the book “Secrets of the Millionaire Mind”, by T. Harv Eker. Change your mindset = change your life.
7. Create an emergency fund
If you’re living paycheck to paycheck and could sink into debt any moment, no doubt you feel a little uneasy about money all the time. So the next step to healthy financial self-care is to create a buffer of cash in your savings account. This is called an emergency fund.
As much as we try to plan for expenses, sometimes unexpected costs pop up and sweep the rug out from underneath us. Car break-downs, job loss or even minor illnesses can take us by surprise and screw up our money plans.
But with an emergency fund set aside, those rainy days are short lived. Paying cash for emergencies upfront means the hard times don’t “linger” or disrupt any of your other financial progress.
E-funds also give you peace of mind! It’s like sleeping next to a German Shepherd that’s trained to protect you. You’re pretty safe!
How much should you keep in your emergency fund? Ideally, you should try and save up 3-6 months worth of living expenses. But if you’re starting from scratch, work towards building a basic emergency fund of around ~$2,500. Economists have found that this will help the average person weather the most common financial emergencies.
Pro tip: Keep your e-fund in a high yield savings account! It’ll earn you interest 🙂
8. Create sinking funds
Another type of fund that reduces stress and helps with financial self-care is sinking funds! While having an emergency fund is a great way to plan for unknown expenses, sinking funds are a way to plan for irregular known expenses.
Sinking funds are basically buckets of money you save up for upcoming once off expenses. Things like holiday gifts each year, new tires every few years, or home maintenance projects. Instead of tackling massive bills when they arrive, you save up for them in advance by putting away a small amount monthly.
Here are some example sinking fund categories you could look at creating. Your future self will thank you when it comes time to pay those bigger bills down the line!
9. Take a PTO Day (or a few!)
Being a hard worker is good. But working too much without breaks will hurt you in the long run. Overworking can have detrimental effects on your physical and emotional health. Burnout is very real – and it not only hurts you, it hurts your employer!
You don’t need to go on vacation or catch the flu to stay home from work. In fact, taking regular single-day breaks can help you to return to work more focused and ready to take on challenges.
Sadly, many Americans don’t take advantage of all their PTO days – 46% of them to be exact. Time off is a huge part of one’s compensation package, so everyone should make sure they are taking all that paid time they’re allotted. If you don’t use vacation days, you’re essentially working more than agreed for free.
So, if you’ve been feeling disenchanted lately, take a PTO day and rest up. You deserve it!
10. Learn to say ‘no’ more.
It’s amazing the lengths we will go to sometimes to please others. Even if it means hurting ourselves and our wallets.
But if you say “yes” too often to what everyone else wants, it can leave very little for what you want.
Saying “no” more is an awesome form of financial self-care. And when you show others that you value your time, money and priorities, they actually respect you more for it!
Setting better boundaries works in all areas of life. At work when you’re asked to “take one for the team” and do something that’s way outside your job description that stresses you out… Say no! In your social life when your sister-in-law invites you to her 37th birthday celebration that will cost $400 in travel expenses that you really don’t have… Say no!
Remember, saying no isn’t selfish. Creating a space for self-care and prioritizing your own well-being is more important than pleasing others all the time.
11. Practice mindful spending
I know I can’t be the only one who has splurged on a ton of Amazon finds, only for them to end up just taking up room at the back of my closet a few weeks later… 😅 Luckily, practicing mindful spending can significantly reduce the amount of crap you buy, and minimize feelings of regret afterwards.
Mindful spending is the practice of spending intentionally in ways that actually reflect your values and bring you joy. It’s all about cutting out the expenses that don’t matter to you. In turn, this leaves more room to spend on the things that do!
Here are a couple of tricks you can try to be more mindful…
- Make a 24-hour waitlist. Before making any unplanned purchase, sleep on it. Add items to your cart but wait 24 hours before finalizing orders.
- Unsubscribe from mailing lists. This will help you ignore sales and promotions for thighs you don’t really need. Sometimes the best discount is 100% off (if you catch my drift).
- Ask yourself who you’re buying this for. Are you spending money just to impress others? Or are you buying for YOU?
- Organize what you have. You might already own the item you’re looking to buy!
- Think of prices in terms of work hours. Is that takeout really worth 3 hours of work? Is that dress worth 3 days of work?!
- Consider the secondary costs. Everything costs more than you think! Maintenance, accessories, storage space, mental energy, etc.
Pretty soon, after scrutinizing the way you spend money, mindful spending will become second nature. You’ll be much more in tune with your life values, and much happier financially!
12. Make an extra debt payment
Financial self-care dually benefits both present you and future you. And that’s why activities like making an extra debt payment once in a while perfectly achieve both.
Each payment towards debt balance helps save money on interest, pay your loans off more quickly, and gives you that extra peace of mind.
Don’t underestimate the power of just a single extra payment here and there.
For example, if you pay your mortgage biweekly (instead of monthly), and schedule each payment to be half of your monthly loan payment, by the end of the year you will have made the equivalent of 13 monthly loan payments.
If you were to use this strategy on a $500,000 mortgage at 6.5%, you could shave 5 years and 11 months off of your mortgage loan!
Making an extra debt payment on your student loans could also have a similar impact. If you were to make the equivalent of 13 monthly payments on a $40,000 balance, you could pay your loans off in 9 years instead of 10!
Related- Ways to Pay Off Your Mortgage Early
13. Kick subscriptions to the curb
Now we’re not the kinds of folks that believe you shouldn’t have a Netflix account until you’re a millionaire. Subscription services can provide hours of cheap, delightful entertainment.
But, unfortunately many people are spending way more money on subscriptions than they might think. On average, consumers spend $924 each year on subscriptions!
But that’s not really even the problem… The real issue with most subscription services is paying for them but not actually using them! It’s literally money down the drain.
Try this: On the 1st of next month, perform a “subscription audit”. This is when you tally up all the subscription services you are paying for and evaluate whether or not you are getting enough value from them to justify the expense. After reviewing everything, cancel the ones you don’t need and keep the ones you love.
One way you can challenge yourself is to start cycling through subscription services. Try to only hold one streaming service at a time, and switch them out when there’s content you want to watch elsewhere.
14. Set up regular money dates
An easy way to incorporate financial self care into your regular life is to schedule a monthly money date with yourself (or your partner if you have joint finances). During these dates, you can focus on any important upcoming financial decisions, reflect on setbacks, and check in on the progress you’ve been making toward your goals.
Don’t worry, money dates aren’t boring and all about numbers. They can be FUN and centered around what you are trying to get out of life. Grab some of your favorite beverages, takeout from your favorite restaurant, or grab some fun face masks and toss on your favorite movie.
Talking money while hiking can work too! It’s like a real date – except you’re also crushing money tasks.
Here are some things to reflect on during money dates… What could you have done better this last month? What area of your finances did you totally crush? Do your money goals still align with your current values?
It can also be a good idea to look ahead at what you have planned in the coming month to set your budget up for success. Oftentimes, we break our budgets when we forget to plan for something we knew we had coming up.
A quick look at the calendar can save you from having to frantically redo your budget halfway through the month when you realize you need to buy a wedding gift.
Related: How to fix a failing budget
15. Give some money away
You probably think I’m crazy. But hear me out.
Most people think the definition of a “rich life” is having lots of money and fancy things. But in reality, financial security is only one piece of the puzzle. Good health, nurturing relationships, and making an impact in this world play a much bigger part in living a fulfilling and “rich” life.
Now, we’re not saying you should give all your money away and join the peace corps. But being charitable and generous with your money can enrich your life in ways you can’t even imagine.
Even tiny acts of kindness are really rewarding. Next time you go out, give an extra big tip to someone who serves you. Buy an unexpected gift for a coworker who needs a pick-me-up. Give away some items for free online in your local Buy Nothing Group. You’ll feel great afterwards, I promise!
16. Keep learning & getting smarter
Lastly, one of the best ways to practice financial self-care is to feed your curiosity and continue to learn new things.
Ever heard of the 100-hour rule? It’s basically a concept that if you commit to learning something for 100 hours over the course of a year, you will become a master in that subject. And do you know the best part?… 100 hours in a year broken down is only 17 minutes per day!
Can you commit 17 minutes per day to learn something new about finances? Want to learn about investing? How to buy a rental property, or retire early? Increasing your knowledge is easy with the tools we have available these days.
Here are just a few ways to nourish your intellectual side:
- Podcasts! Turn your commute into fun learning sessions. Start with the top 10 listened episodes of our How To Money podcast!
- Coursera offers free certification classes from accredited colleges and universities!
- Head to the library or download the Libby app for endless free books and audiobooks
- Want to learn how to change your oil? To code in Python? To play “Flight of the Bumblebee” on violin? YouTube has got you covered.
- Ask to shadow people from other departments at work!
- Listen to career related podcast topics that interest you.
- Attend seminars and in-person classes if you can. Networking events are great learning opportunities too. College campuses often have high quality lectures from experts open to the public!
The average American spends $3,639 a year eating out and only $200 on personal development. Committing a small amount of time each week to learn something new will change the way you think and feel. It can also help increase your earning potential, and form you into a more well-rounded person.
The Bottom Line:
Nobody is born with the perfect balance of work, life, money and happiness. So it’s up to you to practice financial self-care regularly and find the right activities that stabilize your money journey.
Financial self-care is all about making sure your money routine is in tune with your values. While not all these self-care activities are fun, doing a mix of the joy-filled and hard things will ultimately lead you to living a happier and more fulfilled life.
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