We talk a lot about physical, emotional & mental health… but what about financial health? While money won’t buy happiness, it certainly affects our well-being. So… why does financial health matter? What are the top tips for a successful financial future? How does all of this connect to holistic health? Keep reading for more financial empowerment tips!
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Why Does Financial Health Matter? How Does It Relate To Holistic Health?
- 70% of Americans have less than $1,000 saved 
- It’s estimated that 45% of Americans have no savings at all 
- The median balance of retirement accounts is only $65,000 
- Nearly 100 million US workers live paycheck-to-paycheck with less than $500 in liquid savings 
- 72% of Americans reporting feeling stressed about money at some point in the last month 
- 25% of Americans say they’ll never be able to retire 
Clearly, the financial health across the country is not great.
Money is a major stressor… hence why it’s one of the top five causes of divorce across the nation. This stress not only impacts your bank account, but your physical, mental, and emotional wellbeing. They go hand-in-hand.
Money stress can also create a stress spiral… we’re stressed about money & the stress is making us sick, which leads to expensive healthcare bills. Focusing on holistic health is essential to living a healthier & happier life. What goes in, on & around our bodies matters… including what’s in our bank accounts.
Top 15 Financial Empowerment Tips:
1. Track, track, track your spending!
(…I can’t scream it loud enough!)
- I created a FREE Monthly Financial Tracker that you can download here. Make this a part of your daily routine – it can change your day-to-day life!
- You will need to determine your starting point. Without it, you’re starting your financial planning process blind. It’s essential to know your inflows & outflows so you can track your progress over time. Identifying wasteful spending is key.
- You can also use Mint.com as a free spending tracker.
2. Spend mindfully within a budget.
- Be very mindful of where your money is going. Spend less than what you earn.
- An example basic budget to follow: 50/30/20 rule
- 50% of income goes towards needs (groceries, rent, insurance, transportation)
- 30% of income goes for wants (eating out, gifts, travel)
- 20% of income goes towards savings & investments ➜ try to increase this percentage over time
3. Don’t have “shiny-object syndrome.”
- Basically, don’t “treat yourself” with every cool, fun, fashionable gadget that comes your way (whatever the treat may be). Yes, it’s difficult to say no, but it’s essential to understand the difference between a “need” and a “want.” Do you need a nutritious meal every day? Yes. Do you need that $100 pair of workout sneakers? No.
4. Slow down the eating & drinking out of the house.
- This is a surefire way to blow through your budget very quickly. If you’re tempted to go to a restaurant with your friends, eat in advance and get a small appetizer.
- Food is usually much more affordable (and healthier) when cooked at home. You’ll know exactly what’s in it if you cook it yourself!
- If you work out of the house, bring a packed lunch. This is one of my favorite ways to save money & ensure I’m eating a nutritious meal mid-day.
5. Have open and honest conversations about money.
- Do you talk to your friends and family about money? Is it a taboo subject? There’s no need to brag about your net worth… but the more open and honest you are about budgeting or your financial goals, the more opportunity you have to learn & grow.
- If you’re too uncomfortable broaching that subject with your friends, you can have open and honest conversations with a trusted financial advisor (available at most banks… this person should be a fiduciary).
6. Start up a Roth IRA & 401K.
- These are both great retirement plans & investments for the long term. The younger you start, the better off you’ll be.
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7. Prep for holiday gifts in advance
- If you find yourself spending a big chunk of money at the end of the year, buy gifts throughout the year when you stumble across good discounts/deals! Prices for certain items usually go up the closer it is to Christmas, so plan in advance.
8. Always keep learning!
- Read books on personal finance (more on continuous learning here). MasterClass also offers a great course on Economics here. You’re never too old to keep learning about finances!
9. Cancel unnecessary bills, like cable.
- Monthly fees add up… sometimes it’s just not worth it! Especially with the abundance of videos available online, cable is a product of the past.
10. If you have a habit of keeping a balance on your credit cards, stop using them.
- Credit cards are a great way to build credit (and get rewards/points), but only if the balance is paid in full every month. Don’t spend more than what you would have in available/liquid cash. Never hold a balance – it’s a slippery, expensive slope.
11. Always pay yourself first.
- Regardless if you have debt (like student loans), always save a portion of your money first. Make it a habit to save as much as you can – your future self will thank you. Even if it’s $20 a month… that’s $240 a year, which is better than $0!
12. Focus on a growth mindset & ditch the toxic money mindset.
- Money is freedom – be a money magnet! You are already wealthy, in more ways than one. Find one of my favorite money mindset books here.
- Toxic thoughts to ditch: “I don’t make enough money to save.” “Money is the root of all evil.” “I’ll never pay off my debt.” “It’s too complicated for me.” “You need money to make money.”
- Enough is enough! These are simply not true. The longer you say these false narratives to yourself, the more you believe them… stop them in their tracks! Ditch the victim mindset.
13. Put important dates on the calendar
- You do not want to forget to pay bills, like when your monthly credit card statements are due. Otherwise, you’ll be hit with high interest fees and ultimately lose even more money.
14. Track your net worth on a monthly basis
- … And honestly, it’s kind of fun! If you’re saving & working towards a healthier financial literacy status, your net worth will grow over time! It’s extremely satisfying to see your bank accounts & investments grow over time… all thanks to your hard work!
15. Create a vision board on your goals
- Harness the power of positive energy & visualization. When you see your goals on paper every day, it reminds you of your ultimate goals & why it’s essential to keep working towards them. Visualize the habits that will change your life.
- Visualize your best possible self & start showing up as her…. every. single. day.
- I talk more about achieving your biggest & wildest dreams here.
Financial Empowerment Tips – Frequently Asked Questions
You might be asking yourself: am I financially healthy? Click on the below FAQs to learn more!
What's the best way to save money?
One of the best ways to start saving money is to track your current income and expenses. You will need to determine your starting point. Without it, you’re starting your financial planning process blind. It’s essential to know your inflows & outflows so you can track your progress over time.
How can you reduce money stress?
There are many ways to reduce money stress. Tracking income and expenses, cancel uncessary bills, eat out less, and spend mindfully.
What are toxic money thoughts?
There are many toxic money thought, such as “money is the root of all evil” and “i’ll never pay off my debt.” These are simply not true. The longer you say these false narratives to yourself, the more you believe them… stop them in their tracks! Ditch the victim mindset.
Is money a leading cause of divorce?
Yes, money is one of the leading causes of divorce. Money is a major stressor… hence why it’s one of the top five causes of divorce across the nation. This stress not only impacts your bank account, but your physical, mental, and emotional wellbeing.
What are your favorite financial empowerment tips?
All of the money in the world will never solve all of your problems, but being financially well-off can ease a lot of stress in your life. Financial education is incredibly important. Check out my free financial tracker as an additional resource.
Let me know below! You can watch our web story here.
Want to read more? Check out my other articles here!
Information on Financial Empowerment Tips from: Statista, NIH, American Psychological Association, Spend Me Not, The Atlantic, Fool, The Balance, The Muse, Ally, Nerd Wallet, Business Insider
Copyright In On Around LLC 2021 © The statements made on this website have not been evaluated by the FDA (U.S. Food & Drug Administration). They are not intended to diagnose, treat, cure, or prevent any disease. The information provided by this website should not be used as individual medical advice and you should always consult your doctor for individual recommendations and treatment.
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