Taking Care of Yourself Means Taking Care of Your Finances
Minute Read
Self-care is all the rage these days, as it should be! While many associate self-care with getting enough rest, a balanced diet and physical well-being, it is essential to recognize that caring for yourself extends to your financial health, as well.
We created an acronym to help you remember to invest in yourself, literally, when you carve out time for self-care.
S – aving: The future is unpredictable and having money set aside can give you peace of mind. Separate from emergencies, there are going to be high-cost needs and wants that require advanced planning.
E – xploring debt repayment tools: Having debt can put a strain on your relationship with money. Looking into debt repayment tools can help ease that burden on your mind and help you create a plan for successfully paying off that debt.
L – ong-term goals: There are certain milestones in life like buying a home, purchasing a car or paying for higher education that will require serious goal setting and planning. Establishing clear goals not only directs your focus but also holds you accountable. Drafting a detailed plan that includes specific dates and costs gives you a timeline and an idea of how much money to set aside each step of the way.
F – inancial education: Taking the necessary steps to understand your finances is crucial. We have a vast library of information to answer almost any question you might have. Thanks to our partners at GreenPath, that catalog of resources is even larger.
C – reating a budget: Having a budget can help with most of the things on this list! Not only can you improve your relationship with money, but you can also plan for something you know will cost more than normal. Creating a budget is an important part of knowing and adjusting your typical monthly spending.
A – ccount audits: Balancing a physical checkbook is rare these days, but that doesn’t mean you shouldn’t periodically “balance” or check in on your accounts. Go through your statements, line by line, to verify each incoming and outgoing transaction.
R – etirement: Planning for the future as early as possible is key. Contribute to a retirement savings plan each month and see if your employer might also make contributions. Most employers usually match a certain percent depending on how much you contribute. There are pre-tax and post-tax options so do your research to see what is best for you.
E – mergency fund: This should be separate from your regular savings account. Our experts recommend having three to six months' worth of expenses saved for major unexpected events. This could include hospital visits, a job loss or a major home repair, among other possibilities.
We are here to help! Members 1st partners with a financial literacy platform, GreenPath, to provide individualized counseling, guidance and educational services to all members free of charge.
