It’s normal to feel stressed out about money sometimes. In fact, a 2018 study on financial stress found that almost half of Canadians say they’ve lost sleep because of it Opens in a new window.. But there’s some good news, too — it turns out short-term stress can actually help you and nudge you to do better Opens in a new window..
The first step toward reaching balance is to treat your finances like you would any other part of your wellness routine. Here’s how to get started.
Put out those positive vibes
Positive thinking can have a significant impact on your health and wellness. Think: lower rates of depression, improved cardiovascular health and better coping skills when stressful situations arise. A “glass half-full” attitude may even lead to a longer life span, according to The Mayo Clinic Opens in a new window..
When it comes to the energy you put into your finances, try to engage in positive self-talk. Add phrases like, “I’ve got this,” or, “I can handle this” to your internal monologue. Be forward-thinking instead of overly focused on past behaviours or mistakes. Shift your energy to concentrate on making good financial decisions in the future.
One way to do this is to focus on your financial successes — no matter how small. And remember: your money doesn’t define you. Rather, it’s a tool to help you to live your best life.
Focus on the big picture
Setting 2 to 3 personal goals such as saving for a big purchase, paying down credit card balances or shopping online less can help you develop a sense of financial well-being. Having clear goals gives you direction. It can also pave the way for you to become more intentional about your money.
There’s a bit of a science to setting and achieving goals. Enjoy the journey and define a few “ABC” objectives — goals that are “achievable, believable and committed Opens in a new window..”
Be more mindful with your money choices
Will having more money make you happier? Maybe or maybe not. The way money affects your brain is deeper than just having enough, it’s about how you use it.
From a happiness perspective, many behavioural economists believe how you spend your money matters more than how much you have or make. Life experiences lead to the greatest amount of satisfaction. With this in mind, try to be more intentional with your money. Create realistic limits for treating yourself, avoid impulse shopping and find joy in saving. There are even a few simple ways you can train your brain to save more.
Declutter your personal finances
Personal finance can be complicated — but managing them doesn’t have to be.
One way to declutter is to consolidate your accounts into one financial institution. This way, you can enjoy a single snapshot of your money matters, which makes it easier to know where you stand. Another way to get a grasp of your full financial situation is to use an app or fintech product that puts all your finances into one dashboard.
How can you get started? Simple. When it comes to financial products, look for a credit card that has no fees, gives cash back or offers rewards that fit your lifestyle. Consider a no-fee chequing account. Schedule automatic transfers to meet your savings goals, and set up pre-authorized bill payments. You can also set up alerts on your phone to monitor your spending.
Stick to a regular routine
You can’t run a marathon if you don’t commit the time and preparation to training. Managing money stress requires the same effort — though luckily, it’s not nearly as tough as running 10+ miles a day. A simple routine can really help.
You don’t need to obsess about where your money goes each day by repeatedly checking your balances. Instead, set up a budget, stick to it and track your spending. You can use technology to do this automatically. Adjust your budget as needed to reflect what’s going on in your life. Schedule time in your calendar to check in with your finances monthly or quarterly.
Your financial well-being is something you own. Push yourself out of your financial comfort zone and embrace new habits. You just might sleep more soundly.
