Your self-care routine may currently look like curling up on the couch, after a long day of work, with a soothing scented candle on the side, a hearty cup of tea in one hand and a hilarious self-help book in the other. It could also involve a checklist of good habits you’re trying to incorporate into your daily routine, like not checking your phone right after you wake up or focusing on the rich flavours of the food you’re eating. What we tend to overlook when it comes to wellness is financial self-care – although we are well-aware of the stress and anxiety that stems from our finances.
Wellness focuses on our overall health and wellbeing, and that definitely includes our financial health. Having a financial self-care routine will not only benefit our finances, but it will also contribute to our happiness and overall wellbeing. After all, real self-care helps us reframe the situations we’re in to get to the root of our problems. It goes beyond feeling comfortable and digs deeper into healing in order to feel better afterwards.
It can be intimidating, and even embarrassing to confront our own finances, but by adding these good money habits to your self-care routines and checklists, you’ll be able to develop a better understanding of your finances and a healthier money mindset:
- Confront your feelings about money
Write down the first few things that come to mind when you think about your finances. Ask yourself why you feel the way you do – it could come from a childhood experience, having student loan debt or recently seeing others lose their jobs. These fears can prevent us from taking control of our finances, so once you’re able to understand your limiting beliefs – you’ll know how to move forward and start organizing your finances.
- Check your bank accounts
Make it a habit to check your bank accounts often. Not being aware of where your money goes can cause a lot of frustration. By physically seeing your bank balance, and keeping track of your transactions, you’ll be able to make more informed decisions when it comes to spending. This habit will also allow you to catch any unusual transactions or unauthorized purchases before it’s too late.
- Set and review your financial goals
We all have financial goals. What do you aim to do with your money? You could want to repair one of your devices, pay off credit card debt, or save for a car. Note down these goals and break them into smaller steps that can be achieved daily or weekly – i.e. saving RM50 a week for 6 months. By constantly reviewing your progress, you’ll be able to ensure that you’re on the right track and be aware of any obstacles that could set you back.
- Practice mindful spending
Set boundaries when it comes to your money. With shopping being just an app away, it’s become much easier to spend money – ‘retail therapy’ now consists of browsing when we’re sad or happy. Either delete the apps or add the items to your wishlist (instead of your cart) and sleep on it. As with any impulse, see if you still want it badly the next day or in the following days.
- Reward yourself
We’re not saying you shouldn’t spend any money at all, you should always treat yourself – responsibly that is. Reward yourself for reaching your financial goals, but make sure you’ve made space in your budget for treats. This can motivate you to save more. Remember, wellness is all about balance – don’t feel bad about tending to your differing needs.
- Educate yourself
Unfortunately, since we didn’t learn financial literacy in school, it is our responsibility to educate ourselves. Most of us are actually clueless about money, not even receiving honest advice from our parents because it is a taboo topic. Make the effort to read, join free courses, and listen to podcasts – no, not to ‘get rich’, but to get a better understanding of how to manage your finances.
The longer we ignore our limiting money mindset and beliefs, the harder it’ll be for us to become financially stable, secure or free. You can avoid further stress and anxiety by finally stepping up and taking control of your finances.
We’ve connected with HeyAlfred to get the 411 on finance!
You know that feeling, when it’s almost the end of the month, but payday still seems so far away – you start mentally calculating how much you’ve spent and begin regretting that Friday night out or the time you #treatedyourself a bit too much during an online shopping spree. Some may even find it hard to sleep because their bills keep piling up, but believe it or not – for most of our adulthood, our anxiety surrounds our finances.
This is where budgeting helps.
Does the word ‘budget’ make you clench your teeth like that Chrissy Teigen GIF? You’re not alone. It does seem quite restrictive and requires too much commitment, like, “I’m just not looking for a relationship right now”.
But when you budget the right way, and customise it to your own personal choices, a budget can actually give you the freedom to spend without guilt – you won’t have to constantly worry about how the money you splurge on iced coffee could have gone to your credit card loans instead.
It’s a simple guideline for where your money goes every month, so you can enjoy your life even more. Woo!
What is a budget?
A budget is essentially a spending plan for your money – for whatever goal you have (saving for a holiday, paying off debt, early retirement etc), a budget can help you achieve it.
Having a plan will ensure that you have enough money to cover the things that you need, and are important to you.
Note: never think you don’t have enough money for a budget! If you start budgeting the second you get your first pay check, you’ll be able to build a habit that will last your entire career.
How do I create a budget?
One of the most popular ways to budget is the 50/30/20 method:
- 50% of after-tax income on needs (groceries, transportation, housing, utilities, insurance)
- 30% of after-tax income on wants (eating out, hobbies, shopping)
- 20% of after-tax income on savings and investments
However, personal finance should always be personal – like skincare, the most common method may not work for you as an individual. So, if you can’t currently save 20% of your income, try starting with 10% or 5% and grow it from there.
The best thing to do when developing your budget is to test out different ways and then tweak them to suit your own lifestyle and goals.
How do I implement my budget?
First, start by tracking all of your expenses for the previous month – write down everything you’ve spent on or use an app like HeyAlfred to help with the tracking.
This will provide you with a better understanding of your spending patterns and habits: are you spending too much on something you don’t need? Are you putting aside money for savings every month? Don’t be afraid to look at your own spending – the more aware you are, the faster you’ll be able to make better decisions for your future.
Next, set an amount for each category of spending (food, transport, bills, rent, gifts, subscriptions, entertainment) and from there, pinpoint the expenses you can do without.
Try out your new budget and don’t stress if it doesn’t work out the first few times! Maybe you find yourself constantly overspending on groceries (we, too, get carried away in the snack aisle) – is there anywhere else you can cut down on so your grocery budget can be increased? Adjust it accordingly.
How do I stick to my budget?
Consistency is key. Don’t set a budget that is too strict – start small and be kind to yourself. If you’re used to spending RM500 on eating out every month, it would be unrealistic to cut it down to RM0. While it’s good to challenge yourself, don’t set yourself up for failure either.
To be consistent, you also have to enjoy the process, so put aside a budget for the things you like too!
Tip: Automate things like paying your bills – you can also automate your weekly savings via the HeyAlfred app.
How can HeyAlfred help?
HeyAlfred is a personalised financial tracking app that helps you save, budget and track your spendings.
It automatically tracks all of your spendings (across different bank accounts) and displays it on the dashboard – allowing you to see what you spend on by category. From viewing all your spending categories in one chart, you’ll be able to identify your habits and notice when you over spend.
HeyAlfred also dishes out budgeting and saving tips to help you stay on track of your financial wellness journey. From the data based on your personal spending, the chatbot Alfie will let you know when you’re close to going a little over budget.
The latest version of the app lets you automate your savings (via their partner Pod), so you can easily save for any goal you have – there’s nothing like a well-planned savings goal for your next big adventure (or purchase) to reward yourself with.
Payday reminds us that it was worth it – waking up early, dealing with clients, rushing to meet deadlines, getting stuck in rush hour traffic. It has us wanting to celebrate our hard work with an extravagant night out or escape the stress with a relaxing getaway.
There’s nothing wrong with the occasional splurge and enjoying an indulgence that costs more than we’re used to, but when it happens too often – it can be harmful for our financial health. Especially during a global pandemic, financial planning has become crucial to our wellbeing. It requires us to be more mindful of our spending to support our financial goals.
Like we’ve mentioned before, self-care doesn’t only mean adding expensive cosmetics to your cart or booking a massage at a 5-star hotel – you can get the same satisfaction from simpler things like cooking with your partner or going for a hike with your friends. There are many ways to treat yourself after a long month of work, here are a few that won’t bust your budget:
Instead of buying new clothes, put on an episode of Tidying Up With Marie Kondo and get inspired to clean out your closet. Find joy in decluttering the rest of your home – donating or recycling the items you’ve chosen to part with it. You’ll feel satisfied and fulfilled, and have a serene space to unwind in.
With the amount of beautiful islands we have in Malaysia, it is tempting to take a trip out to paradise – but with the rising cases of coronavirus (and this unpleasant weather), it might be better to put plane rides on pause and dedicate a day to unplug and go outdoors. Catch some rays down by the pool or go hiking with your friends, you can get in touch with nature closer to home.
Working out is an important part of self-care, but there are more affordable alternatives if you’re worried about breaking the bank. Get your heart rate up by going for a run around the neighbourhood or following one of the many free workout videos available online. Dancing in your bedroom also counts!
We always want to spoil our loved ones, but it’s the most simple moments that often become priceless memories. Switch it up by cooking your partner a romantic meal or having them join you in the kitchen as a sous-chef. If you want a change of scenery, pack a lunch basket and head out for a picnic where you two can get some fresh air together.
Learn more about financial wellness here.