Financial Self-Care: Nurturing Your Relationship with Money

We often focus on physical and mental well-being, but financial health is equally crucial for overall wellness. At Citizens State Bank, we believe that practicing financial self-care is essential for achieving long-term financial stability and peace of mind.

What is financial self-care?

Financial self-care involves taking intentional steps to manage your money effectively to create a healthy, sustainable relationship with your finances. Just as physical self-care includes habits like exercise and a balanced diet, and mental self-care includes practices like mindfulness and therapy, financial self-care is about creating routines and strategies that support your long-term financial health.

At its core, financial self-care means actively working to reduce financial stress and uncertainty. This can include budgeting, saving, setting spending limits, or even learning more about financial topics so you’re more confident about making informed decisions. It’s about taking control of your money instead of letting it control you.

Why does it matter?

Many (most?) people overlook financial self-care until a crisis forces them to pay attention. By proactively developing good financial habits, you can:

• Ease financial pressure and anxiety. Knowing you have a plan in place can ease the constant worry about bills, debt, or emergencies.
• Improve overall well-being. Financial stability contributes directly to mental and even physical health. Money stress can lead to insomnia, anxiety, depression, and other health issues.
• Greater confidence in money management. Small wins—like building a savings cushion or paying off a debt—boost your confidence and motivation.
• Prepare for the unexpected. Life throws a lot of curveballs. Whether your car breaks down or you have unexpected medical bills, having a financial cushion can remove some of the stress.

A small, intentional act―like setting up a direct deposit of $20 (or $5, or $50) from each paycheck into a savings account―can grow into a substantial emergency fund over time. The peace of mind this brings can have a ripple effect on your overall well-being.

Key Practices for Financial Self-Care:

• Create a budget. Track your income and expenses to understand your spending patterns and identify areas for improvement.
• Practice mindful spending. Before making a purchase, ask yourself if it aligns with your goals and bring genuine value to your life. This can help you differentiate between impulsive and intentional spending. Along these lines:
  • Set boundaries. Learn to say no to expenses that don't support your long-term goals. Setting boundaries is a great skill to practice for financial and overall self-care.
  • Automate your finances. Use digital banking tools to remove some of the stress of managing your money.
    • Set up direct deposit, and don’t forget to include an automatic deposit into a savings account.
    • Set up automatic bill payments to reduce stress and ensure bills are paid on time.
    • Use digital debit card controls to set limits on spending and where you can use your card.
    • Take advantage of the budgeting and financial insight tools in digital banking to monitor your progress .
• Establish financial routines. Routines, like paying bills or updating your savings tracker on a specific day, keep you accountable and help you stick to your financial plan. (Rewards for sticking to your routine are encouraged! 🍰☕)
• Regularly review your finances. Set aside time to review your financial progress, (re)prioritize your goals, and adjust your financial plan as needed. This practice helps ensure you're on track and making informed decisions about your money.
• Build an emergency fund. Save money for unexpected expenses to avoid financial stress during challenging times.
• Invest in financial education and keep it entertaining. Find a way to make learning about finance topics fun, like listening to podcasts, reading books, or playing games. (Be sure to use reputable sources.) 
• Set realistic financial goals. Establish short- and long-term objectives that align with your values and aspirations. While it’s fine to set “stretch goals,” if you aim too high, you’re likely to get discouraged and give up altogether.
• Reset your mindset. Be kind to yourself and maintain a positive attitude about your money. Accept where you are and visualize where you want to be without dwelling on past mistakes. Celebrate every victory!
• Ask for help when you need it. Don't hesitate to reach out for help. Consider working with a financial advisor or seeking support from trusted friends or family members.

The Long-Term Benefits:

While the immediate rewards of financial self-care are important, the real power lies in the long-term impact. By developing consistent, healthy financial habits today, you can set the foundation for a lifetime of financial stability and enjoy:

• Greater financial resilience. Building your savings and an emergency fund means you’ll be better equipped to handle unexpected challenges like a job loss or health crisis.
• Improved mental and physical well-being. When your finances are in order, it often leads to lower levels of chronic stress, which can positively affect your mental clarity, sleep quality, and even physical health.
• Increased financial freedom and flexibility. Good money habits increase your options—whether that’s having the ability to leave a job you don’t like, retiring early, traveling, or supporting family members.
• Build generational wealth. By practicing and modeling financial self-care, you can pass on knowledge, assets, and values to the next generation, giving them a stronger financial start in life.
• A stronger sense of control and confidence. Over time, proactive financial management helps you feel empowered to make informed decisions and face future financial challenges with a problem-solving mindset instead of fear.

How Citizens State Bank Can Help

We’re committed to supporting your financial wellness journey, whether you’re opening your first checking account, buying a new home, or looking to sell your established business. We offer tools and services to help you practice financial self-care like:

• Personal checking and savings accounts to help you manage your daily finances and build your emergency fund.
• Digital tools so it’s easy and convenient for you to track and manage your funds.
• Loans and mortgages to help you achieve your financial goals.
• Educational resources (like this Financial Wellness Blog) you can trust.
• Personal Bankers to help you review your finances, set realistic goals, and discuss your questions.

Financial self-care is an ongoing process that requires consistency and patience, but it pays off by helping you take control of your financial health and working toward a more secure financial future. Don’t forget we’re here to help!

The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.