Money Mindfulness: Practicing Financial Self-Care

The prevalence of self-care messaging reminds us to nurture our physical and mental well-being—with mindfulness practices, exercise routines, and virtual detoxing. But what about financial self-care?

When we cultivate positive money habits and plan for our future we are (quite literally) investing in ourselves. Financial self-care is rooted in self-awareness, discipline, and intentionality. Here are several ways you can practice financial self-care, starting now.

Build a Budget

Building a budget is akin to giving yourself the gift of clarity: it allows you to track expenses, identify potential areas where you can trim spending, and allocate funds to help you achieve financial goals. Rather than seeing budgeting as a restrictive practice, frame it as a tool that grants you freedom to spend where it matters. At Fort Worth City Credit Union, we offer SyncUp, a free personal financial management tool that allows you to create budgets, goals, track your transactions across multiple financial institutions, and more, making it easy to building a budget and get a better grasp on your overall financial picture.

Create an Emergency Fund

More than half of Americans fear they wouldn’t be able to cover daily living expenses for a month if they lost their income tomorrow, according to a recent Bankrate survey.  Invest in your future peace of mind: set up an automatic, recurring savings deposit with the goal of setting three to six months' worth of living expenses aside. If you’re living paycheck to paycheck, you can start small by setting aside 2% of your net income and gradually increasing your contribution rate when possible.

Tackle Debt

With recent federal interest rate hikes, borrowing costs have reached historic highs which means even your debt is costing you more money. If you’re feeling overwhelmed, you’re not alone. Taking proactive steps towards debt reduction can improve your financial health and significantly reduce your stress. Unsure where to begin? Consider a balance transfer from your high-rate credit cards to the Fort Worth City Credit Union Fort Worth Proud VISA credit card, which offers rates as low as 10.9%. If you currently own your home, you may also consider taking advantage of any equity you have built up, with a home equity loan to consolidate your bills or a cash-out refinance to lower your interest rate, and pay off outstanding debt.

Plan for Retirement

If your employer offers a 401(k)-retirement plan, take advantage of this benefit (especially if your company matches part or all of your contribution). Don’t have a workplace retirement account? You can still open a Roth IRA—a tax-advantaged retirement savings account. If you find it challenging to save throughout the year, consider setting aside part or all of your tax refund as a way to begin investing without impacting your day-to-day budget. A CU Wealth Management Advisor at Fort Worth City Credit Union offers a complimentary consultation to discuss your retirement plans.

Get Educated

One of the most empowering aspects of financial self-care is education. Fort Worth City Credit Union offers financial education classes, blogs, webinars, and free online classes through our partnership with GreenPath Financial Wellness. Whether you’re preparing to buy a home or navigating your auto loan, these sessions offer jargon-free, shame-free guidance to help you reach your financial goals.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.