Spending, Saving, and Thriving: A Guide to Financial Self-Care
Just like eating right and exercising, your finances are an important part of your self-care routine.
What is financial self care?
Financial self care is about more than just creating a budget or saving money each month. It’s the practice of managing your finances in a way that supports your mental health as well as your financial well-being. This approach moves beyond basic money management and looks at your financial habits in a deeper, more meaningful way. It’s all about creating a positive, sustainable relationship with money to reduce stress and align your personal values and goals.
When we practice financial self-care, we approach money as an important aspect of our overall well-being. This means building a relationship with money that reduces stress and aligns with what truly matters to us, while still making informed decisions about our money. By focusing on thoughtful, intentional financial habits, we can create a life where money supports our values, rather than causing anxiety.
Budgeting through a self-care lens
If you’re like me, you were taught to view your budget as a template for how you should be spending your money: something designed to limit and control your spending. That put the focus on cutting costs - no dinners out, no lattes, “no” to anything that felt indulgent. Budgets were about sacrifice.
But here’s the truth: budgeting is NOT about restriction. It’s about intention.
Budgeting is a powerful tool that gives *you* control over where your money goes, helping you build a life that aligns your personal values and brings you joy.
Here’s the simplest way to budget:
Write down your monthly income
Subtract automatic savings
Subtract regular monthly expenses
And finally… spend what’s left!
With this approach, you’ve already saved money and covered your essentials. You can feel confident spending money, knowing that your basic needs are covered. What’s left is yours to enjoy, guilt-free! This shift away from restriction helps to focus your mindset on abundance, creating more room for joy in your life.
Remember, budgeting isn’t just about numbers on a spreadsheet. It’s about creating systems for your money that benefit you and create a sense of ease and freedom in your life.
A financial safety net is self-love
You know how you wake up in the morning and don’t feel like going to the gym, but you do it anyway because you know it’s good for you and makes your body stronger?
That’s exactly what it’s like to create a financial safety net. Making an emergency fund and saving for retirement may seem boring, but just like going to the gym, afterwards you’ll be so glad you did it.
Everyone should have the following safety nets in place:
1. A 3-6 month emergency fund.
Add up your minimum necessary expenses for the month (rent, utilities, insurance payments, groceries, etc.) and multiply it x3 or x6 (6 is more conservative). That’s the amount you should have in your emergency fund. If, or when, an emergency happens, you don’t need to stress about it because you already have money set aside.
2. Savings for retirement
I know that maxing out your Roth IRA doesn’t sound sexy. That $7,000 could definitely go towards something more fun. But, just like eating a salad instead of a cheeseburger for lunch every day, your 65 year old self will thank you.
3. Health insurance
Medical debt is one of the top causes of bankruptcy in the United States, and not having healthcare is a serious gamble with both your money and your health. Yes, healthcare is expensive, but it’s more expensive to have an emergency appendectomy and no insurance coverage.
4. Life insurance
If you have anyone that relies on your income to live (a spouse, child or family member), you need life insurance. The coverage amount will depend on your particular situation, so talk with an expert.
The most important thing to know is that you should buy term life insurance NOT whole life insurance. Whole life insurance is sold by salesmen as an investment, but it is expensive and a poor investment. Get term life insurance to cover your family’s needs in case you die.
I know these steps might be difficult. They may give you anxiety or feel like they’re robbing you of money you need for daily life. But trust me, once you have your systems in place you will have the peace of mind of knowing that if anything happens, you have a plan.
Prioritizing your spending
An important part of a good financial self-care practice is deciding what your values are and how you can use your money to align those values. We all have different lives and different priorities so this will look different for everyone, but here are some examples to start your thought process:
I value a nice home in a safe neighborhood, but I don’t value having the largest house on the block. So, I live in a nice neighborhood in an 800 sq ft condo.
I value food (in all forms) so I buy myself nearly everything I want from the grocery store, but I don’t use food delivery services.
I value travel. I will gladly prioritize a trip over new clothes, jewelry, the latest iPhone or a daily latte.
The point is, you need to choose the important things for you and your life, and let go of the rest. You can have anything, you cannot have everything.
You’ll be amazed at how light you feel when you give yourself permission to stop caring about spending money on things that other people want you to.
If you don’t care about fashion but love to travel, forget about designer bags and book your trip to Thailand!
Revisit you self-care routine monthly
Things happen, and life changes in ways we don’t often expect. Two years from now you probably won’t need the same financial self-care routine that you need today. That’s good! It means you’re growing.
To keep up with these changes, I recommend you check in with your routine once per month to make sure your goals are still aligned with your current values. Take this time to assess your priorities. Ask yourself, “What goals are my savings working towards? Is this reflected in my budget?”
What’s more, you can use this time to reflect on your financial accomplishments for the past month and remind yourself to practice gratitude with your money. Recognizing your wins is an important part of maintaining enthusiasm towards your goals and reinforcing positive habits.
Stay connected to your financial goals and be proud of how far you’ve come.
Final Thoughts
Financial self-care isn’t just a one-time task; it’s an ongoing commitment to your well-being and peace of mind. By viewing money as a tool for self-care, you can reshape your financial habits to support a life of greater ease, fulfillment, and freedom from stress. Through budgeting with intention, building a safety net, prioritizing your spending on what matters most, and revisiting your routine regularly, you’re creating a relationship with money that works for you—not against you.
Remember, financial self-care is about building a system that reflects your values and supports your goals. It’s about choosing habits that empower you, reducing money-related anxiety, and allowing you to fully engage with the life you want.
Give yourself permission to grow, adapt, and celebrate every step along the way. Embrace financial self-care as a way to take control of your money and live a life aligned with what you truly value.
Your life may not be perfect, but it is imperfectly yours. The only way to live it is your way.
Katherine, founder of Imperfect Budget
Imperfect Budget is an educational platform built to help women align financial goals and free themselves from limiting money mindsets.
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