5 Tips for Financial Well-Being
By: Marina Vander Heyden
Tags: Empowerment, Finance, Wellness, Investing, Wellbeing

As 2020 is coming to a close, I have found myself questioning our materialist and consumerist culture; especially in a time where many are suffering financially. The fact of the matter is that most of us spend our hard-earned money because of media manipulation or in an effort to conform to unrealistic societal norms.

Working in the mortgage business I see clients over-extending themselves time and time again, and usually on things that don’t serve their long-term goals or happiness. I sometimes find myself guilty of this behaviour as well; buying things I don’t need, feeling momentary fulfillment, then a sense of emptiness and longing for more soon after.

Realistically, a healthy relationship with money is as essential to our well-being as exercise and a healthy diet. Being more mindful of how I purpose my dollars has deeply improved my relationship with money and has helped me find a sense of inner-peace and control when it comes to my financial well-being.

The following 5 tips have helped me the most when it comes to making dollars make sense:

1. Take inventory of your life and practice gratitude

When was the last time you took a moment to realize how blessed you truly are? Without looking at your possessions, think about how fortunate you are to have a roof over your head and food in your fridge. Be thankful for these basic comforts that many of us take for granted. Others who are less fortunate would consider our basics luxuries.

Often times we buy more because we simply forget what we already have. Take some time to sort through your possessions, keeping only the things that spark joy, and donate everything else to someone that could make more use of the item. I’m personally a fan of the Marie Kondo method which emphasizes the notion of getting rid of things you no longer need being neither wasteful nor shameful.

“Imagine yourself living in a space that only contains things that spark joy” — Marie Kondo

2. Be honest with yourself and assess your situation

Many of us fear our finances because we fear the unknown. We probably weren’t taught much about it in school and we may not know the first thing about taking control of our financial health.

The first step is to assess where you’re at. Analyze how much you make every month, what your necessary costs of living are and what you’re left with after the bills are paid. This gives you a clear idea how much you can spend on the non-essentials or how much you can afford to save.

If you don’t control your finances, they will control you. Use a budgeting app, talk to a financial advisor, or ask a financially savvy friend for advice. Talking about money shouldn’t be shameful. It takes everyone a little while to figure out what their financial priorities are and what works best for them.

“Awareness is like the sun. When it shines on things, they are transformed” — Thich Nhat Hanh

3. Avoid impulse buys by asking yourself these questions:

Why do I want this item? Will it improve my life in a meaningful way or get me closer to achieving my goals? How long will I feel good about this purchase realistically? Will I still want to buy it in two weeks?

If you make it a habit to ask yourself these questions when shopping, you will drastically reduce impulse spending. We live in a time where marketing agencies use psychological influencing tactics to make you buy their products. Do you really want to fall prey to these methods?

4. See money as a tool to build your future, not just a means to an end

Money is not just a thing we use to acquire more things. If we truly want to change our financial well-being, it is of the utmost importance that we shift our perspective out of this instant-gratification trap and start identifying the ways we can make our money work for us - not the other way around.

The way the rich see money is as a tool to make more of it. But please, please, please, don’t dump all your money into something you know nothing about. You may have heard beaming reviews from friends or colleagues who are investing in cryptocurrency, forex or the latest pyramid scheme and making a killing; but a sure-fire way to lose money is to make large, uninformed investments in markets you know nothing about. The rich take calculated risks and do their research. They only invest in markets or businesses they understand, and they diversify; not putting all your eggs in one basket so to say.

“Invest in what you know and nothing more” — Warren Buffett

5. Invest in yourself before anything else

If you assess your finances and don’t like what you see, it doesn’t make sense to start investing whatever savings you have into something external. If you want to make more, take time to figure out what you can learn to increase your earning potential.

When you spend your money on education, you are directly investing in the betterment of your future and adding value to any employer or business endeavour of your choosing. The more value you can add to other people’s lives in whatever you do, the more money you will make.

“An investment in knowledge pays the best interest” — Benjamin Franklin

Overall, our financial priorities vary drastically at different stages in our lives, but being mindful of our spending habits and aware of how we can use money to invest in a better future will forever benefit us.

When it comes to holiday spending, you may consider being open with your loved ones if you’re struggling financially. If they don’t understand, they’re probably not the right people to keep in your life (only keep that which sparks joy goes for people too). Perhaps opt to cook a nice meal or craft gifts by hand instead of spending money you don’t have. At the end of the day, quality time spent with people we care about surpasses the value of any material item.

5 Tips for Financial Well-Being Recapped:

1. Take inventory of your life and possessions and take time to be grateful for what you already have.

2. Do periodic financial assessments and be honest with yourself. Control your money or it will control you.

3. Avoid impulse purchases by asking yourself why you want something, if it will contribute to your goals, how long you’ll feel good about it and if you’ll still want to purchase it in two weeks.

4. See money as a tool to build your future, not just a means to an end. Make your money work for you, not the other way around.

5. Invest in yourself before anything else because an investment in knowledge pays the best interest.