Financial wellness is foundational for feeling empowered with money. Being a financial wizz may be in the cards for you this year, if you prioritize financial wellness. Financial wellness is described as being able to manage income comfortably, stay out of debt, and being able to save efficiently. For some, this is a concept that seems extremely hard to relate to, if even a little intimidating. Thankfully, with a little guidance and some expert financial wellness tips, those fears will be a thing of the past.
Financial Wellness According to an Expert
21Ninety reached out to accountant Krystle McGilvery, Founder of Mind Over Money and CBT Money Coach, for the best financial tips. McGilvery is a renowned finance and behavioral psychology expert dedicated to providing finance skills training, business support, and mentoring. With over a decade of experience and specialized knowledge in behavioral psychology and decision-making, she leverages her credentials as a CIMA Chartered Accountant, CBT Coach, and ILM Mentor to create tailored solutions that enhance financial decision-making and wellbeing. In this article, she uses her expertise as a leading voice in socially responsible finance and empowerment to advise on financial tips for Black women and their communities. Here’s what she has to say:
Useful Financial Wellness Tips According To An Expert
Embark on a Financial Self-Discovery Journey
Financial wellness begins with understanding and self-acceptance. Your relationship with money develops from as early as seven years old. It is typically shaped by your upbringing, adult experiences, environmental factors and the state of the economy. If you struggle with financial matters, it’s important to acknowledge that both controllable and uncontrollable factors are at play.
Identify your money personality – are you a saver, spender or avoider? This initial step provides crucial insight. Take time to celebrate yourself for diving into this and commit to continuing to reflect and learn.
Assess Your Habits To Create a Trustworthy Budget
Effective budgeting, the cornerstone of financial wellness, requires an understanding of your unique spending habits. Overcoming psychological biases like impulse spending is essential. Recognizing patterns such as emotional or social spending enables you to create a budget that accommodates your habits while ensuring control. Start by tracking your spending to identify patterns. Understand how emotions influence your decisions and educate yourself about behavioral biases. As a result, you will be able to set budgets that go beyond numbers to reflect these insights. Do not forget to align your budget with your life goals for added meaning, motivation and ease of implementation.
Use Technology and Strategies for Financial Mastery
Our emotions can lead to biases in financial decisions. For instance, delaying savings until the end of the month, in the hope of exercising self-control, often proves unsuccessful.
Counteract these tendencies with strategies, frameworks and technology that make spending more challenging. Consider the 48-hour rule for unplanned purchases and utilise apps like IFTTT for automated savings. You could also try to make accessing your savings more difficult, to avoid temptation, and deleting pay apps from your mobile.
Accelerate Wealth Building With Smart Credit Use
A well-maintained credit profile is crucial for accessing wealth-building financial opportunities and is valued by various entities like lenders and landlords. Poor credit can impede your ability to obtain loans or favorable interest rates on credit cards, resulting in you paying more in interest. Regularly monitor your credit profile and understand the factors that influence it. Maintain good credit habits, ensure your details are current and watch for any fraudulent activity.
Negotiate Your Salary With Confidence
Enhancing your income through effective salary negotiation can drastically improve your financial situation. Understand your value in the job market, and communicate this clearly to your employer. To access a higher salary, research standard salaries in your field. You can also practice negotiation strategies and confidently articulate your achievements and expectations. Remember, negotiation isn’t only about salary; it also encompasses benefits and flexible working conditions.