We often think of health in terms of diet, exercise, or sleep, but what about our finances? Money may not buy happiness, but financial stress can certainly take a toll on both your mind and body. The good news is that small, consistent steps with your finances can reduce stress and give you back control.
Step 1- Track your Spending
Start by tracking where your money goes each day. Whether you jot it down in a journal, use a budgeting app, or keep a simple Excel sheet, seeing your spending in black and white often highlights easy areas to cut back on. Unused subscriptions, too many takeout meals? The possibilities are endless.
Step 2- Create a Budget
Creating a budget can seem like a daunting task, but the key is to create a budget that works for you, not against you. Instead of cutting back on everything fun, try the 50/30/20 rule. 50% of your income for needs, 30% for wants and 20% for savings or debt. Even if you can’t hit those numbers exactly, the framework will better help you prioritize your spending.
Step 3- Build an Emergency Fund
Putting away just $10-$20 a week can add up quickly! Having a cushion for car repairs, medical bills or unexpected expenses lowers stress and prevents debt from piling up. You can make this easier with small lifestyle swaps, like making coffee at home, cooking in batches or choosing free local activities for entertainment. You don’t necessarily have to make huge sacrifices.
Managing money doesn’t have to be overwhelming. By starting small and making steady changes, you can improve both your financial stability and peace of mind.
Written by GUADS member Jillian with contributions from financialhealthnetwork.org and rocketmoney.com
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