Building financial independence, they say, comes from investing wisely—letting your money work for you instead of the other way around. But here’s the often-overlooked truth: before you can invest, you need to budget. Most people associate self-care with face masks or a relaxing bath, but financial self-care is just as important—if not more.
When we feel confident and in control of our finances, it can drastically reduce stress and free up mental space for other aspects of well-being. Budgeting isn’t just about crunching numbers; it’s about creating a life where your needs are met, your priorities are clear, and your money aligns with your values. It helps you live within your means, build discipline, and save with purpose—so when it’s time to invest, you can do it with confidence, not fear. That’s real self-care.
So let’s hop in,
Financial Self-Care 101: How to Create a Budget That Works for You
Moving into the second quarter of the year, it’s the perfect time to think about how we’ve been managing our finances. It is a great time to evaluate the foundation for financial wellness, a practice that’s not just about saving money, but about creating a healthy relationship with your finances. A budget that actually works for you can be the ultimate form of financial self-care. So, let’s dive into how to set yourself up for success.
Step-by-Step Guide to Creating a Budget That Works for You
1. Assess Your Income and Expenses
The first step in setting up a budget is knowing exactly how much money is coming in and going out. Make a list of all your income sources, including your salary, side hustles, or any passive income. Then, track your monthly expenses—everything from rent/mortgage, utilities, and groceries, to your subscription services and entertainment.
– Tip: Use an app like Nkwa (for tracking your savings) or a simple spreadsheet to organize your income and expenses.
2. Separate Your Essentials from Extras
After assessing your expenses, it’s time to categorize them. Divide your spending into essentials (needs) like rent, groceries, and utilities, and extras (wants) like dining out, Netflix, or holiday shopping.
– Tip: A popular budgeting rule is the 50/30/20 guideline: allocate 50% of your income to essentials, 30% to wants, and 20% to savings or debt repayment.
3. Set Realistic Financial Goals
Now that you know where your money is going, you can set goals that fit into your financial situation. Goals might include paying off debt, building an emergency fund, or saving for a vacation. It’s important to make these goals realistic, so they’re more achievable and less likely to cause stress.
– Short-Term Goals: These could be monthly savings or paying off small credit card balances.
– Long-Term Goals: Think about retirement savings, buying a house, or building a larger emergency fund.
4. Track and Adjust Regularly
Your budget is not a one-and-done thing; it should be revisited regularly. You might find certain expenses were higher than expected or maybe you’ve saved more in a specific category. Adjust accordingly as you learn more about your spending patterns.
– Tip: Review your budget once a month to see how you’re doing and adjust as needed. December is a great time to plan for the new year’s financial goals!
5. Don’t Forget the Fun!
Budgeting doesn’t mean restricting yourself to the bare minimum. Include a “fun” fund in your budget where you allocate money to things that bring you joy. That way, you won’t feel deprived, and you’ll be less likely to overspend impulsively.
Additional Tips for Financial Self-Care
– Automate Your Savings: Set up automatic transfers to your savings or investment accounts so you don’t have to think about it. This helps in building up savings without much effort.
– Build an Emergency Fund: Aim for 3 to 6 months’ worth of living expenses set aside in case of unexpected events, like car repairs or medical bills.
– Debt Snowball vs. Avalanche: Use either the snowball (paying off the smallest debts first) or avalanche (paying off debts with the highest interest first) method to tackle debt without getting overwhelmed.
Falling in stride
Take the opportunity to redeploy, creating a budget is not about limiting yourself but about gaining control, so you can spend in alignment with your values and priorities. Ready to take control of your finances? Let us know in the comments if you’d like tips on finding financial tracking apps or budgeting tools that suit your needs!
P.S. If you enjoyed this article and want to dive deeper into building a life of intention, balance, and financial freedom, don’t miss my ebook The Art of Feminine Wellness. It’s packed with practical tips, mindset shifts, and soulful strategies to help you embrace independence with ease and elegance. Grab your copy here!
