There is an obvious downside to all of this - the stress of never quite having enough cash. Many people feel like they are constantly tip-toeing around their finances, never quite having enough money in the bank to do the things that they want to do. 

It’s leading to a rise in the popularity of financial self-care. It is a relatively new concept designed to help people take more control of the financial aspects of their lives. It’s about setting meaningful financial goals, reducing debts and following debt management strategies. 

For many people, it is just as critical as other forms of self-care, such as eating a good diet and spending time away from work. Here’s how to practice it:

Get Into A Money Mindset

Getting yourself into a good financial position rarely happens by chance. Instead, it takes conscious decision-making and active planning. If you don’t get into a money mindset, you’ll struggle to ever hatch a plan or see it through until completion.

Making money mistakes is a part of life. People do it all the time. They often discover that their plans aren’t quite working out how they had hoped. 

But that’s okay. When you have a money mindset, you don’t sweat the small stuff. Rather, you focus on the bigger picture and use your mistakes as opportunities to improve your money management skills. 

Grow Your Assets

Practicing financial self-care also requires spending more money on assets. The reason this is an act of self-care is because of the long-term rewards that it provides. Growing your assets increases your passive income. And the more of that you have, the less pressure you’ll experience to make ends meet. You’ll always have money coming in from secondary sources, not just your work. 

If you decide to buy assets, be clear on the amount of risk that you’re willing to take on. Not all assets are the same. If you are approaching retirement, you’ll want to reduce your risk so that you can preserve your capital. If you are a long way from retirement, then you can increase the level of risk that you take on. Always remember to diversify your portfolio so that you’re not just relying on one company or bond to perform. 

Deal With Debt Head On

Debt is a long-term drag on your wealth, so you should deal with it as soon as you can. Owing other people money is a major source of stress and something that can affect your life profoundly. 

If you have credit card debt, try to pay that off first. You can also calculate your mortgage debt using sites such as MortgageCalculator.uk. These show you how much you are likely to have to pay if you continue paying at the usual rate. 

Once you get free from debt, life suddenly opens up to you. You have many more opportunities than you had before. 

Be Realistic About Your Budget

Being realistic about your budgeting can sometimes be a challenge. If your income is volatile, you won’t have as much money to put away some months compared to others. 

Being realistic means allocating your budget each month as it comes. If you earn a lot of money, then you can afford to put more of it into savings. If you are earning less, then you will have less left over. 

Find A Goal That Matters To You

Nobody wants to work hard all month and then save the lion’s share of their income just for the sake of it. Happily forgoing income requires having a real purpose. 

Before you commit to saving money, think about why you want to do it. For some people, the biggest motivation is freedom itself. They are willing to work hard if they know that at the end of the process, they can use their time as they please. 

For others, there’s another goal - getting the house they want or having money to put their kids through college. Whatever it is, financial care is a bit like dieting - you have to know your “why.”

If you can stay motivated long-term, say, ten years, the results you can achieve can be tremendous. You can escape the financial traps so many people find themselves in and gain freedom you never thought possible.