In partnership with Tilly Money
In 2021, we prioritise self care - as we should.
But for most this comes in the form of facials, meditation, yoga, retail therapy and baths. What very few of us realise, is that financial self care is the practice you might be ignoring - and it's arguably one of the most important. Giving your money rituals and habits a total makeover, in the same way you would spring clean your wardrobe to make way for the new, can be rewarding in the now and will set you up for long term success.
It’s okay to admit you don’t have it all together. In the realm of finance, many of us feel as though we’re right in the deep end, looking around for a float and waiting for a lifeboat. But for your own wellbeing, taking charge of your finances is essential. And it's something you need to start now. If you're not, you need to take active steps in the right direction, no matter how small.
Why is financial self care so important?
Understand that there is a gender pay gap in Australia. Gender pay gaps are an internationally established measure of women’s position in the economy. The gender pay gap is the difference between women’s and men’s average weekly full-time equivalent earnings, expressed as a percentage of men’s earnings. As of February 2020, the gender pay gap stands at 13.9%, which means that women earn on average $242.90 per week less than men. Adding to this startling statistic, there is also a financial literacy gender gap between men and women.
“Within Australia, 63% of men and 48% of women demonstrate an understanding of at least three basic financial literacy concepts," according to HILDA Data.
As such, it is important to take time to expand our financial knowledge and wellbeing. As Israelmore Ayivor once said, “Knowledge is Power, Power provides Information; Information leads to Education, Education breeds Wisdom; Wisdom is Liberation.”
So how do we indulge in a little financial self-care?
1. Fill in a budget
Budgeting is a necessary evil and is unavoidable if you want to progress your bank balance, eradicate long-standing debt and work toward your purchasing goals. Budgets can allow you to find out where your money is going and how much savings (or debt) you have. This may also help you discover where you could spend less and therefore save more. Whether you operate best with a hard-copy table or via an app, there are many resources where you can record your income and expenses to determine where needs a revamp.
2. Save for a rainy day
Budgeting and savings go hand in hand. We know that holding onto your hard-earned cash can be difficult, especially after years of the same financial routines. By changing your money habits and narrowing down on sacrifices to save more, you’ll slowly be able to build up your bank balance and get closer to your financial goals.
3. Get motivated
When you’re feeling flat and uninspired, actively find ways to motivate yourself. Whether it’s a book, podcast episode, quote or song, something that motivates you in the right direction can re-ignite the spark within and have you setting goals and achieving milestones in no time. For example, the Tilly Money podcast features interviews with successful women who share their stories and advice across business and finance. Find your motivational source and visit it often to maintain the momentum you build as you move towards your goals.
Whether it’s ongoing bills, accumulated debt or unexpected charges, we all have some financial stress lingering in our lives. It could be either a personal experience or that of a friend or relative, however, we’ve all witnessed the repercussions of being financially irresponsible and unaware.
To achieve more tranquillity and clarity in this area, accessing financial information that’s both digestible & interesting is the way forward. In collaboration with RUSSH, Tilly Money has created a 3 week program for improving your financial wellbeing. With an easy-to-follow guide delivered directly to your email inbox each week, you’ll be guided through your financial self-care steps and increase your financial knowledge along the way.
Image: Tilly Money on Instagram