Why Money Management Should Be A Key Part Of Your Self-Care Routine

Knowing where you stand financially can greatly improve your overall well-being.
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Managing your finances is self-care.

Taking time to care for your body and mind is crucial for your overall health. Whether it’s sipping a green smoothie, doing yoga or reading a drugstore paperback in the bathtub, a good self-care routine prevents illness and injuries and promotes a general sense of wellbeing.

But one area of self-care that you might be neglecting? Your finances. 

Especially now, amid a global pandemic that’s turned people’s financial lives upside down, it’s crucial to reclaim some control over your financial life.

“Focusing on your finances is a form of self-care,” said Jamila Souffrant, a Digital Federal Credit Union partner and budgeting expert. She explained that money can be an overwhelming part of people’s lives, especially when it feels like there’s more going out than coming in. Incorporating money management into an overall self-care routine can help restore a sense of order.

The Money-Mind Connection

Even though we engage with money daily, it’s a huge part of our overall well-being that is rarely discussed, according to Lindsay Bryan-Podvin, a financial therapist.

Our financial situation can have a major impact on our mental health and overall happiness. One survey by Bankrate found that 48% of U.S. adults lose sleep over money worries. The biggest culprit was everyday expenses, followed by saving enough for retirement and health care or insurance bills.

Studies have also found there’s a correlation between money and happiness, which has only grown stronger over the years.

“Anyone who says money doesn’t buy happiness is a person who hasn’t truly experienced the stress of not having money,” Bryan-Podvin said. “It’s really hard to focus on relaxing, self-care or restoration when a person is worried about paying their bills.”

But money doesn’t just affect your mind. There are real physical consequences of financial struggles, too. Not having enough money can mean being unable to afford important health procedures, medications or nutritious foods. Plus, stressing over money can cause high blood pressure, stomach issues, headaches and even increase the risk of stroke.

Ways To Practice Financial Self-Care

That doesn’t mean your money woes can be wiped away with a simple self-care routine. Just as drinking a green smoothie won’t reverse years of poor diet and exercise, spending a few minutes on your budget won’t catapult you out of poverty.

That said, money management is an essential part of self-care, and making small changes over time can help you get to a more comfortable place. “It’s not nearly as glamorous or fun as long bath sessions, but having your money in order can free up time and energy and help you avoid stress,” said Melanie Lockert, host of the Mental Health and Wealth show and founder of MentalHealthandWealth.com

When you’re mired in debt, she said, you’re anxious and stressed that part of your paycheck automatically belongs to someone else. “It can also make people feel stuck or limit their life choices because of money.” Being able to cover your bills and know you can put food on the table enhances feelings of security and safety.

So if you want to incorporate money management into your self-care routine, here’s how to start. 

Increase awareness.

Before you jump head-first into your finances, Souffrant said you should first take an inventory of your situation. Make a list of all your accounts and where they’re located. If you owe money, what’s the balance and interest rate? 

Putting together this inventory is the first step in getting a handle on things, according to Souffrant. But you don’t have to go big and overwhelm yourself.

“It doesn’t mean you’re going to sit down and do everything at once,” she said. “It can be as simple as getting the logins for your bank accounts and going from there.” 

Set aside time.

To incorporate money into your self-care, Lockert said you should set aside time and create a routine. For example, every Sunday, she spends 20 minutes reviewing her personal checking and savings accounts, business checking and savings accounts, credit card, PayPal account and expenses. Doing so, she said, gives her a sense of control and a snapshot of what’s going on with her money. 

Ditch your crappy bank.

Does your bank treat you more like a dollar sign than a person? If so, it could contribute to an overall sense of dread when dealing with money. 

“Financial institutions have a lot to do with how you manage your money,” Souffrant said. So if your current bank nickels and dimes you or fails to address your concerns, consider making the switch to a community bank or credit union. These smaller institutions are more invested in the local community and helping customers thrive, and are often known for fewer fees and better interest rates.

“Not only how you manage your money, but who you manage it with, is important,” Souffrant added.

Look for ways to improve cash flow.

During these tough times, you might be carrying more debt than usual. And that’s OK ― you don’t have to wipe out your debt overnight. As part of your financial self-care routine, look for ways to chip away at it instead.

For example, consider refinancing to a lower interest rate. If you have any bank accounts that charge monthly fees, switch to a fee-free version and apply the savings to your debt.

Automate as much as possible.

Managing money is much less stressful when you don’t have to think about it all the time. Automation can help with this. For example, Lockert suggested setting up Google calendar reminders to pay certain bills.

“When possible, I would also set up autopay to ensure I don’t forget a payment (and keep track of the balance so I don’t overdraft),” she added.

And to take away some of the pain of saving money, set up an automatic transfer from each paycheck to a savings account. It doesn’t have to be a lot ― even $20 at a time adds up. 

Reward yourself.

Finally, Podvin recommends giving yourself a regular allowance for rewards, such as a weekly latte or monthly massage. It’s about taking care of yourself, after all, not living a life of restriction. Make sure you budget for things that bring you joy.

Before You Go

10 Ways To Save Money That Take An Hour Or Less
Roll Over Your Old 401(k)(01 of10)
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“Employees should consider rolling over an old 401(k) or 403(b) retirement plan into an IRA, which typically takes a matter of minutes. Though the money in the old plan will continue to grow tax-deferred, investors can end up paying much higher fees in an employer-sponsored retirement plan such as a 401(k) due to expensive fund options and plan administration costs. Those fees eat directly into an individual’s potential return. The savings can be significant if you switch to an IRA — even close to 1 percent in some cases. Over time, that can really add up.” ― Kristin McFarland, a wealth advisor and certified financial planner at Darrow Wealth Management in Boston. (credit:JGI/Jamie Grill via Getty Images)
Switch Banks(02 of10)
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“If you aren’t earning at least 1 percent on your savings, you’re leaving money on the table. By simply switching from a traditional brick-and-mortar bank to a high-yield savings account, you can make your money work harder for you and earn on your savings effortlessly. It takes just a few seconds to compare interest rates between financial institutions to find the best option for you; opening a high-yield online savings account can be done in a matter of minutes.” ― Andrea Woroch, consumer savings expert (credit:MajaMitrovic via Getty Images)
Negotiate With Your Internet Provider(03 of10)
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“Call your internet provider and negotiate your bill. Let them know your budget has changed and you are shopping around. Providers usually have some sort of special promotion going on that they’ll offer you. For example, my provider once offered a huge discount for college students and gave us our internet for half price during the school year. Spending 10 minutes on the phone saved us around $300-$400.” ― Jaime Gibbs, a faith and finance blogger at Like a Bubbling Brook (credit:recep-bg via Getty Images)
Complete A Health Assessment(04 of10)
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“Many people don’t realize that their health insurance provider offers the option to complete a health assessment, which means they miss out on hundreds of dollars each year. Ours has typically been a simple online survey that takes about 20 minutes to complete. In exchange (no matter what the results), we get $150 in gift cards for every insured person over 18.” ― Val Breit, owner of personal finance blog The Common Cents Club (credit:krisanapong detraphiphat via Getty Images)
Sign Up For Auto-Pay(05 of10)
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“If you follow a reasonable budget, setting your bills to auto-pay is a great way to save time and money. Start by looking at your monthly mandatory expenses and find a company that incentivizes customers to sign up for automatic billing. Usually, they’ll offer a reduced interest rate or discounts on future transactions, depending on what type of bill it is. If you’re going to have to pay a bill eventually, why not get a discount for doing it automatically? Common places to find discounts can include student loans, car loans or utilities such as your electric bill. And the biggest perk? You don’t have to worry about remembering to pay the bill in full each month ― it’s all taken care of.” ― Ben Huber, owner of Dollar Sprout (credit:Petar Chernaev via Getty Images)
Rethink Your Health Insurance(06 of10)
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“Re-evaluate your health insurance options at work since now is enrollment time. What did you sign up for in the past that you now don’t need? For example, I knew someone who had health insurance and cancer insurance. The cancer insurance, which she did not need, was $100 a month. She removed it for instant savings.” ― Ja’Net Adams, speaker, author and creator of Debt Sucks University (credit:Manop Phimsit / EyeEm via Getty Images)
Skim Your Bank Statements(07 of10)
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“Spend 30 to 60 minutes one evening and review your past two to three months of bank statements. You might find your bank is charging you monthly maintenance fees that can be avoided and save you a couple hundred dollars a year. One way to avoid monthly fees is to enroll in direct deposit or, if you can, keep at least $1,000 in your checking account.” ― Jason Reposa, CEO and co-founder of MyBankTracker (credit:Image Source via Getty Images)
Listen To A Personal Finance Podcast(08 of10)
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“There are many out there, which can be from a few minutes long to almost an hour. These types of podcasts will greatly impact your knowledge and help you to learn how to save money at no cost to you. And you also aren’t spending hours to learn, either. It’s something I do each week and has helped me make smarter money choices.” ― Todd Kunsman, founder of Invested Wallet (credit:MStudioImages via Getty Images)
Switch To A Prepaid Cellphone Plan(09 of10)
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“Call your cellphone provider and ask about their prepaid pricing plans. With a few minutes on the phone, you can save $15 or more per month ($180+ per year), plus increase your data limit. After switching to prepaid, we saved $15 a month and increased our data from 3GB shared to 10GB each (20GB total).” ― Evan and Nikayla, the bloggers behind Budgeting Couple (credit:Bronek Kaminski via Getty Images)
Set It And Forget It(10 of10)
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“Using an app like Acorns can take less than 10 minutes to set up and will continuously save (and actually invest) money every time you make a purchase. Acorns works by rounding up each transaction to the nearest dollar and investing the difference for you automatically. It’s a simple and quick way to get a method of saving and investing money every single day in place.” ― Dustyn Ferguson, blogger at Dime Will Tell (credit:LeoPatrizi via Getty Images)

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