When we hear the term, "self-care", we typically think of manicures and pedicures, going to the salon or barber, and "spoiling [ourselves]".
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| Via Robert E Blackmon on GIPHY |
While there's nothing inherently wrong with this, it is not the entire picture.
Self-care has been a popular term in the culture for some time now — and for good reason, too. With the surge in "hustle culture" and burnout, people have noted the importance of practicing self-care.
What is "self-care"?
As can be seen in the Instagram post above, self-care is defined by Dictionary.com as "the act of attending to one's physical or mental health, generally without medical or other professional consultation (often used attributively)."
It basically means taking care of yourself and attending to your emotional and physical needs. There are different ways to practice self-care (exercising, getting enough sleep, practicing mindfulness, etc), but we'll be looking at ways to practice financial self-care.
Before we can look at the different ways to practice financial self-care, we first have to understand what it means.
What is "financial self-care"?
Financial self-care is "the act of attending to one's financial wellness, generally without professional consultation."
See how I just changed some of the words to change the meaning?
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| Via Identity on GIPHY |
Financial self-care is about taking care of your financial self. It involves making financial decisions that will improve your finances. Let's take a look at top seven different ways to practice financial self-care.
Top 7 Ways to Practice Financial Self-care
1. Create a budget
Creating a budget will help you identify your planned income and expenses. A budget can help you achieve your financial goals, and can guide you on what you can and can't spend money on. One key benefit of sticking to a budget is that it helps you track your expenses and minimise unnecessary spending.
2. Track your expenses
An easy and quick way to track your expenses is to use the notes app on your phone. This can be done each time you make a purchase. Seeing that we're on our phones 24/7, it doesn't hurt to put it to good use. I write the day, date, and type the item purchased and the price at which it was bought.
Another way to track your expenses (if you mostly use your card to pay) is to download your monthly bank statement and see how much you've spent. It can be really eye-opening because everything is there in black and white. You see which stores you frequent and certain repeat expenditures like fast-food delivery and monthly subscriptions. For some, using a good old-fashioned pen and paper does the trick.
It helps to categorise your expenses to decide which ones are a priority and which ones aren't important. By tracking your expenses, you're able to see where most of your money goes and what you need to cut back on, if necessary.
3. Save money
Saving money entails puting money aside for future use. You can do this by regularly saving a percentage of your income each month, saving any unexpected money you make, etc. Money saved up can be used for many reasons: to buy planned items, make a lump-sum investment or save towards an emergency fund.
4. Build an emergency fund
"Save your money and one day your money will save you."
This is an oft-quoted phrase in the personal finance space, and for good reason! An emergency fund is money you have set aside in case of emergencies. It covers unexpected expenses and/or emergencies you may face. These emergencies include medical expenses, major home repairs, car repairs, etc. It is usually recommended that one saves up to three times their monthly expenses. Having an emergency fund can help one avoid having to rely on debt in emergencies.
With "South Africans spending 75% of their take-home pay on debt", who wouldn't see the value in trying to build an emergency fund?
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| Via Financial Gym on GIPHY |
5. Invest
Investing is putting money into financial assets with the expectation that you'll make a profit and the aim thereof is to build wealth. This is achieved in the long-term. There are different ways to invest. You can invest in asset classes such as shares, ETFs, unit trusts, cryptocurrency, property, etc.
6. Get insurance
Insurance is a way to protect yourself against financial loss. It involves paying a monthly premium to your insurer who will indemnify you in the event of a specified (covered) loss.
There are different types of insurance available. Some of them are:
- Health insurance
- Home insurance
- Life insurance
- Car insurance
7. Look at getting a financial planner or financial adviser
Investopedia.com defines a financial planner as "a professional who helps companies and individuals create a program to meet long-term financial goals". A financial planner can be helpful when it comes to creating a financial plan to help you achieve certain financial goals. They consider life goals and events such as retirement, marriage, education, etc that affect one's finances.
Wrap-up
Thank you for taking the time to read this blog post. I hope you enjoyed reading it as much as I did writing it.
Self-care is all the rage these days, and it is easy to see why. But there is one aspect of self-care that we tend to neglect — our finances. Hopefully, this blog post helped you learn the importance of practicing financial self-care. What do you think about financial self-care? Share your thoughts in the comments section below.
Till next time!
Take care,
Disclaimer:
This blog post is for informational purposes only and does not constitute financial advice.
The information presented herein is not a substitute for and should never be relied upon for professional financial advice.
Always talk to your financial advisor about the risks and benefits of any financial information shared. If you are looking for financial advice, kindly speak to somebody who is certified and registered with the Financial Sector Conduct Authority (FSCA).
eishstudentbudget™ and its owner(s) are not liable for any loss, harm, or damage you may incur as a result of you using the information presented here.
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