04 Jul Let’s Talk Money + Wellness
So for this week’s blog post, I thought I’d talk about something rarely discussed in the wellness space – PERSONAL FINANCES!
That’s right, money, dinero, moolah…. whatever you want to call it – it plays a major role in your overall wellness.
In fact, for many Americans, their financial situation causes them a great deal of stress. And you know what stress leads to, anxiety, depression, cardiovascular disease, obesity, sexual dysfunction, gastrointestinal problems, do I need to go on?!
This, along with many other reasons, is why it’s so important to establish good financial health.
This year, I’ve been working on my own financial wellness plan. The follow through isn’t going quite as expected, but I’m making moves in the right direction. Slow progress is still progress right?!
The first step in creating my financial wellness plan was to create a list of my financial goals. Some of my goals included: increasing my credit score and paying down my credit card debt, saving for 3-6 months of expenses in an emergency fund, having a dedicated portion of my income to saving for my long-term goals like retirement, establishing a separate savings account for my short-term goals, working toward insurance and estate planning, and mastering my budget.
It sounds like a lot however I’ve been breaking down my financial plan into small sections, tackling one thing at a time and slowly building.
I’ve started my journey working toward mastering my cash flow first.
The very first thing I did in order to gain a better understanding of my current financial situation was to sign up for Mint. Mint gave me insight on how I spent my money, the amount I spent each month in each category, and expenses that could be eliminated, . It also helped me view my overall financial situation by supplying me with my credit score, tips to improve my credit score, and an estimated net worth.
Use the 50/20/30 rule.
By understanding my cash flow situation, I was able to create a budget using the 50/20/30 rule. The 50/20/30 rule states that fifty percent of my income should go to bills and expenses, twenty percent should go to personal expenses and thirty percent should go to my financial goals.
Using my budget, I was able to separate my personal spending and bills into two accounts allowing me to easily see what I have available to spend. I was also able to sign up for apps like Digits and Acorns which help me save easily and effortlessly by rounding up the change in my account into a fund (Acorns is an investment fund and Digits is a savings fund).
I changed my money mindset.
If you read my post on Jen Sincero, I’ve been working on changing my money mindset and exploring my relationship with money. I know that I am fully capable and worthy of making more money and I should be making more money. I am now in the process of doing the work to make more money, however, I’ve realized that I have some money relationship issues to overcome.
For some reason, I’ve found that I feel dirty asking for MY money. You heard me right. I feel weird asking for my own money. I’ve been exploring this emotion lately, but I know until I overcome it – I won’t be able to make the money I feel I deserve.
I leave the credit cards behind.
I honestly only have one credit card now. I’ve cut up the rest. The temptation was too much for me and I’ve found that every time I misplace a card I’ve been able to pay it off. Since I know that works for me, I’ve resorted to extreme measures to help me get to where I want to go.
Having one credit card still gives me the benefit of having the money when I need it (thank you universe) while allowing myself to get rid of the bad debt.
I stopped allowing myself to become a victim of a “good sale”.
I used to buy things just because they were on sale, however, lately I’ve been mindful of the purchases that I make. I now ask myself questions like: Do I need this?, How long will this last? What are the reviews like? Do I really like what I’m buying or am I just buying it because it’s on sale?
Being mindful while shopping will helps to save me TONS of money. While it’s okay to treat yourself every now and then, I am aware that going overboard with the treats can add up.
I said no to FOMO.
Like many millennials, I’m often a victim of FOMO (fear of missing out). However, FOMO will leave your pockets empty and I am NOT about that life.
I’ve been working to overcome my FOMO by becoming clear on my values, goals, and expectations. By setting clear expectations and goals for myself, I am able to distinguish between the things that are worth my time and the things that aren’t. This also allows me to better understand the things I should be spending my money on as well.
Eventually, I’ll look at creating an investment portfolio and gaining more assets, but as of now eliminating the bad debt and focusing on saving are the main two steps I can take toward my financial freedom. Let me know if you have any other tips and advice for establishing good financial health.
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