Personal Finance Self-Care: A Step Towards Reducing Stress
Whether it involves a brisk run, a therapeutic session, or sipping on a green juice, we all incorporate self-care routines into our lives to alleviate stress. While initially, integrating these practices into our daily routines might feel uncomfortable, over time, activities like exercising, discussing our emotions, or even acquiring a taste for kale can significantly contribute to our overall well-being.
This concept extends to managing your personal finances. If the thought of tasks like reviewing your bank account balances or settling your monthly credit card bill triggers a sense of discomfort, rest assured that you are not alone. According to a study conducted among over 19,000 adults in the United States, 60 percent reported experiencing anxiety when contemplating their personal finances, and 50 percent expressed stress when discussing this topic.
What’s the secret to alleviating the stress associated with handling your finances? According to Monell, the key lies in establishing a daily financial health routine, similar to other self-care practices. She asserts, “Since reducing financial stress is pivotal to achieving long-term well-being, we should begin incorporating sound financial health practices into our daily lives. This practice helps instill confidence in our ability to surmount financial challenges, make informed decisions, and optimize our financial well-being to lead fulfilling lives.”
Below, you’ll find seven manageable financial tasks that can assist in reducing your money-related stress. Attempting to tackle all seven tasks at once may seem overwhelming, so consider starting with one productive financial task and gradually expanding from there.
One simple and effective initial step is to download a financial app. Whether it’s a dedicated personal finance app such as Nav.it or the free app provided by your bank or credit card company, it represents a positive stride in the right direction. Access to your financial information at your fingertips can provide a sense of empowerment. Depending on your financial institution, you might also have the option to receive notifications such as credit line increases and fraud alerts.
Outline Your Financial Goals
Are you looking to purchase a new home, establish college savings accounts for your children, or contribute to a retirement fund? Monell advises writing down these financial goals and subsequently creating a strategy for each of them. “Start by delineating both short-term and long-term financial objectives, and then chart a monthly, weekly, and daily routine to progress toward achieving those goals,” she suggests. Having a well-defined timeline for your objectives can offer you a clearer perspective of your progress and alleviate the stress associated with uncertainty.
Address Account Issues Promptly
Have you recently received a fraud alert notification from your bank? Suspect that you’ve been double-charged for a single purchase? Encountered a declined payment for a mere $5 coffee? Such situations can occur to anyone, irrespective of their bank account balance.
Even if you regularly monitor your account balances and transactions, it’s essential to address any issues immediately. It could be a minor concern, such as a technical glitch or a false alarm, but it’s crucial to act promptly. After all, while checking your accounts during inconvenient times, like during work or a social gathering, can be stressful, dealing with a problem in its early stages is much simpler than unraveling the complexities of identity theft after your account is drained or spending extended periods on hold with customer service.
Regularly Monitor Your Account Balances
“Justine Carino, a therapist, emphasizes the importance of regularly monitoring your bank accounts to manage financial stress. Ignoring your financial situation and avoiding budget planning can exacerbate stress because it leads to a lack of awareness and a sense of financial helplessness,” she explains. “Avoidance, although a common coping mechanism for anxiety and stress, is the least helpful. Developing a habit of checking your bank accounts on a weekly basis can help you reach your financial goals and reduce stress.”
Therefore, create a schedule and add it to your calendar. For instance, set a reminder to check your bank account balance every Wednesday at noon and review your credit card statements every Sunday at 6 p.m. The more consistently you do this, the less daunting it becomes.
Establish a Monthly Budget
Budgeting may not be the most enjoyable task, but it proves beneficial in the long run. It helps you save money, enhances your financial awareness, and provides greater control over your finances. Whether you choose to use a budgeting app, create a spreadsheet, or stick to traditional pen-and-paper methods, opt for the approach that best suits your needs.
Empower Yourself with Financial Knowledge
Are you seeking to demystify money matters or educate yourself on effective methods to optimize your finances? Consider borrowing a book on financial wellness from your local library or exploring affordable titles available online. Dedicate yourself to reading a few chapters each week or tailor the pace to your preferences, and you’ll soon find yourself more confident and informed about personal finance.
Prefer listening to reading? Simply hit the subscribe button for one of the numerous free podcasts dedicated to money management and investment. Search for personal finance on your preferred podcast platform and look for a host and content that resonates with you.
Consulting with a Financial Expert
Managing your finances single-handedly can be daunting and anxiety-inducing. So, why not consider seeking professional guidance? Financial planners and coaches possess the expertise required to optimize your financial resources, reduce interest costs, and maximize investment returns. “Engaging in a conversation with a seasoned financial advisor through organizations such as the Foundation for Financial Planning can be a great start. Alternatively, you can begin your financial education by exploring resources like The Financial Diet, I Will Teach You To Be Rich, or All the Colors,” advises Yáñez.