The importance of physical and mental well-being has been talked about for a long time. Most likely, you too take care of your health in the form of a diet or sports hobby. But what about your financial well-being?
How do you reduce the worry and stress of money?
One should take care of one’s finances and balance in the same way as one seeks to take care of oneself. We buy healthy food that nourishes our bodies, exercise to maintain our ability to function and take care of the well-being of our minds by doing things that matter to ourselves and spending time with our loved ones. So why not take care of our finances in the same way?
Money is an integral part of our lives. Thus, money worries affect more aspects of our lives, such as the satisfaction we experience.
In 2019, PwC conducted a study on the financial well-being of consumers working in the U.S., which found that its economy is the biggest stressor of all – even greater than any other stressor combined.
The financial stress among the respondents was most caused by the cash flow, indebtedness, and difficulties in getting money to save money. Even small unexpected expenses caused considerable stress.
Do you feel the concerns of the respondents identify themselves?
Financial well-being is not about thinking about money all the time
The stress associated with money matters involuntarily lingers in the back of our head and little by little it begins to affect our behavior, relationships, and well-being. You may find that you think about money more often than you would like and it makes you feel nasty. Well, how then would we take over such feelings?
Your financial situation may be good, but you may still experience uncertainty about your financial situation. Perhaps the reason for the feelings lies in the fact that you don’t recognize your money skills; where are you good and what could you perhaps still develop?
Financial well-being begins with you feeling in control of your finances and recognizing how you can develop them toward your dreams. Thus, identifying your situation and monetary persona is an important part of the journey to financial well-being!
5 tips on how to take over your financial well-being
Together, we can rejoice that there has been much more talk about money, economic skills, and investment in recent years. Here are five tips from the ROI * team to help anyone improve their financial well-being today!
1. Focus on forming a habit
Saving is easier when you get to make it a habit for yourself. At first, it is worth focusing only on creating a habit and not stressing too much, for example, the size of the amounts to be put into savings. You can start saving even for just a euro a month!
2. Take a friend for support
Like training at the gym or even having coffee, pursuing financial well-being with a friend can boost motivation and make it easier for a new routine to become a habit.
Saving requires patience, so social interaction can also reduce the stress associated with spending money. You will not be left with anything and you will not be pressured to spend money when your friend is also committed to saving.
3. Track your progress and reward yourself!
Tracking your progress is a great way to maintain a positive state of mind and feel motivated. By tracking, you will see how far you have already come and focus on positive things instead of thinking about where there is still a long way to go. Enjoy small successes on your journey to financial well-being and also remember to celebrate them. Be proud of your progress!
4. Develop money skills
Economic well-being is a rising megatrend, for which various solutions can already be found. Wonder if you would be willing to pay for your financial skills coaching and what approach would be right for you? We can get a PT and train our physique, but have you thought that you could train your finances in the same way?
5. Put money to do the work for you
If you are left with five euros a month after mandatory spending on savings, you may well start investing.