Our mental health has been a huge focus point over the last year as we all cope with the effects of the COVID-19 pandemic.
In fact, mental wellness platforms designed to support underserved Black communities have surged in popularity since the pandemic and Black Lives Matter protests.
However, whenever we talk about mental health and wellbeing - the financial aspect is often forgotten. This is interesting because it’s obvious that financial health affects every aspect of our daily lives including our emotions, behaviours and attitudes. Research shows that stress levels and depression are often linked to finances so it’s imperative that you make financial health a critical part of your wellbeing.
Here’s five tips to improve your financial wellbeing with links to some great tools and resources to get you started! Don’t forget that everyone’s financial situation is different so figure out what works for you and your goals.
1. Take it one day at a time
Improving your financial health is not a destination you can reach overnight, it’s something you do day by day and involves planning, patience and commitment. If you want to achieve financial wellbeing, you have to be in it for the long term.
2. Know where you are - create a budget
The first thing you should be doing to take care of your financial wellbeing is knowing where you are - this means knowing your income and expenses and making a detailed budget to keep track of all your money. There are so many budget templates online that are easy to use - check out some resources here!
3. Know where you are trying to go - set long-term goals
Once you know where you are, you can set your sights on longer-term financial goals such as paying off your mortgage or buying your first house. Set goals that will give you real motivation to save and invest even more!
4. Build an emergency fund
If you do not have an emergency fund, now is the time to start building it! This will help you relieve so much stress if you have to deal with unexpected unemployment or any unforeseen costs. Start building your savings account slowly - putting even £100 a month is an amazing start! When you get more comfortable, you can then consider investment accounts like the funds we offer at Wealth8. Remember, with investment, your capital is at risk so make sure you have your emergency fund sorted first.
5. Manifest a positive money mindset
Your mindset is actually just as important as your actions and “money matras” are a great tool that can help you instil calm and positivity into your financial situation! Check out this list of money mantras here.