It’s easy to think that spending money is tantamount to self-care. Somebody has to pay for all those fitness classes, face masks, and massages, after all. And you might happily pay these costs. These splurges and healthcare expenses help revitalize you when the going gets tough, so you have the energy and poise to handle more stressful tasks in your life.
For many people, balancing the budget is one of their most stressful chores. Spending your hard-earned money on expensive acts of self-care can exacerbate these anxieties, negating the comforting benefits of these purchases.
5 Financial Self Care Acts to Perform for Better Budget
If you really want to boost your mental wellness, targeting your finances is your best bet. Performing the following financial self-care acts will help you feel better about your budget.
1. Reviewing Your Budget Regularly
Having a budget isn’t enough. You need to carve out time every month to review your budget. This way, you can make sure everything is still going according to your plan. It’s also a good reminder to update your budget as your income and expenses change. During your monthly reviews, look for trends in your expenses — both purposeful and accidental. Do you see any spending spikes that could have been avoided with better planning? Now’s the time to hit the books.
2. Saving for the Unexpected
A well-balanced budget always accounts for emergency savings. These savings have a nominal cost each month—most people save less than 20% of their take-home pay — but they add up over time. Eventually, you’ll have enough to take on big expenses that you wouldn’t normally be able to handle out of pocket.
Until you manage to save money as an emergency fund, you may rely on online installment loans for backup. A website like MoneyKey makes it easy to research these online loans, giving you an opportunity to understand how these loans fit into your financial plan. If it’s something you can afford, you can apply during an emergency to hear if you qualify relatively soon. If approved, you can use an installment loan in lieu of your savings to get things done.
3. Strategizing Debt
You probably have more outstanding loans than just one online installment loan. Most people juggle mortgages, auto financing, lines of credit, and student loans — each one taking a share of the budget. Treating every account with equal priority can keep you in debt longer and make it harder to stay motivated.
That’s why most financial advisors recommend choosing between the snowball and avalanche debt repayment methods. They help you focus on one account while paying the minimums on everything else. These concentrated repayment styles can help you double down on early payments and potentially reduce the interest you earn on balances.
4. Revisiting Your Insurances
Auto, health, homeowners, and life insurances provide the ultimate financial safety nets when your emergency fund and an online installment loan fall short of big accidents.
While they’re an important financial tool, they can take up a big chunk of your budget each month in premiums. To make sure you aren’t paying more than you need, revisit your policies every year and compare them to competitors. You might find another company offering better coverage for the same costs or less.
5. Reviewing Your Financial Statements
Your last act of financial self-care shared today is simple. Just check in with your credit card statements once a month. Keeping an eye on these statements will help you understand your spending better, and you’ll spot any suspicious activity earlier.
These financial self-care tips may not be as enjoyable as a bubble bath or sweet treat, but they are vital to your mental well-being.