Financial Wellness: Managing Money and Stress

There were two prayer requests I would write down at church every Sunday back in my single-mom days. And the one we'll cover today is ✨financial stability✨

What does it mean to be financially stable? To pay the bills on time? To go grocery shopping without a calculator in hand? To buy those new work shoes guilt-free? I think financial stability means a lot of different things, but at this time, I was looking for "enough." Enough budgeting to make it to the next month, enough income to cover the bills, and enough security that going to Target didn't feel like a splurge.

And when I think back to that time, I wish I could go back and help that girl out! She was trying her best, but she simply didn't know what to do. This advice may not be for everyone, but if you were to ask for my advice, here's what I'd give:

Establish a budget. Many of us fail to put this fundamental step into practice, opting instead to either neglect it or set it up and forget about it. If you have extra money, begin by monitoring your earnings and expenditures to gain a clear understanding of your financial situation. If you're barely making ends meet, you must evaluate your essential payments and due dates.

Irrespective of your financial situation, prioritize essential expenses and automate whatever you can! When dealing with my bills—rent, utilities, phone, electricity, etc.—I enrolled in automatic payments for as many as possible. This ensured that they were paid on time, and some companies even provide discounts for opting for "paperless billing."

For more flexible expenses like clothing for my daughter, groceries, and miscellaneous costs, I was less inclined to adhere strictly to a set budget. Looking for a quick solution? Determine your wants or needs and bring the corresponding amount of cash with you. This strategy can be extremely helpful if you tend to impulse shop (like me)!

Setting financial goals. Step two of managing your finances involves the crucial task of setting clear and achievable financial goals. While this step might appear daunting at first, it is a fundamental aspect of securing your financial future. By establishing goals such as creating an emergency fund to cover unexpected expenses or saving for your child's education, you are laying down a roadmap that will guide your financial decisions and actions.

Starting with small and attainable goals is key to building momentum and staying motivated. As you progress and achieve milestones like paying off your credit card debt and accumulating three months' worth of expenses in savings, it is essential to not become complacent. Instead, use these achievements as stepping stones towards even greater aspirations.

Encouraging yourself to dream big can open up a world of possibilities and push you to strive for financial success beyond what you initially thought possible. Whether it's planning for early retirement, buying a home, or starting your own business, setting ambitious goals can fuel your determination and drive you to excel.

For individuals who thrive on competition, viewing saving money as a personal challenge can add an extra layer of motivation. By framing it as a competition between your current self and your future financial goals, you can harness your competitive spirit to make sound financial choices and outperform your own expectations.

Finding the right accounts. Whether it's for retirement savings or your emergency fund, I urge you not to repeat the mistakes I made. The first misstep was choosing not to take advantage of my employer's matching contribution for my 401k. I thought saving money immediately was more important than investing... how I wish I hadn't made that decision. At the time, the 3-5% contribution wouldn't have significantly impacted my income, but missing out on the match set back my retirement savings. As the saying goes, time is your most valuable asset! Start early and start contributing now.

Secondly, the money I thought I needed to save instead of putting into my 401k? It was just sitting in a regular savings account, earning minimal interest and sometimes incurring fees. Let me emphasize this point: short-term savings should be kept in a (repeat after me) HIGH YIELD SAVINGS ACCOUNT. Make your money work for you! This is not for long-term savings and investments, but for funds you want to keep easily accessible. Once you've reached your emergency savings target, the interest earned can be redirected towards a new goal. The opportunities are endless, so please take this advice to heart.

Prioritizing financial stability is essential for working women. And while, yes, there are things to be done such as paying off high-interest debt, getting a financial advisor, and investing, the tips shared above are easy lifts for tangible goals you can implement today to help ease the financial burden.

What is another easy-to-do to make your life add some financial stability to your life today?