Money Mindset: How To Have A Financial Health Day

The word budget is kind of like the word diet — no one wants to do it.

For many of us, when we talk about money we become a little anxious and that has to do with our money story. You might not even know you have a money story! But just like anything in life, we are built upon our experiences.

When it comes to budgeting, the truth is that a budget is simply taking account of where you are today. It doesn’t have to be a complete overhaul of your financial behaviors or a reason for you to engage in negative self talk. In fact, getting clear about where you’re at can be the first step to shifting that money mindset and establishing healthier and happier practices for yourself and your family.

Because of our money stories, when we deal with financial hardships it can have a lot of the same physical symptoms as when we are sick or feeling depressed. When that happens, it’s important to open up lines of communication with our loved ones and family members so we can tap into our support systems. Although it may feel uncomfortable, whether you just lost your job, or are worried you might in the future, it’s important to take inventory of where you are today: how much money you are actually bringing in, how many different incomes do you have, how much your expenses are and where it’s going monthly. Sitting down and getting clear on what your monthly expenses are and having these conversations with your family, will be the first step to helping ease your mind and feel more empowered when it comes to our relationship with money.

But first, allow this to be your gentle reminder to not completely freak out when you hear the word “recession”. It’s simply a part of what we see happening in a capitalist society. History repeats itself, especially when we don’t learn from it. There are trends and warning signs that lead up to a recession; understanding them and preparing ourselves means we don’t have to feel blind sighted or unsupported when the time inevitably comes.

Think about how we have medicine cabinets filled to the brim with cough drops, DayQuil, and Advil, all the things we have on deck for when we get sick because we know at some point we will, it’s just a matter of time… Recognizing the signs for a recession and establishing an emergency fund is the same thing. It’s the same understanding of seeing signs or symptoms before a cold hits you. Seeing triggers in the market for signs of a recession can help to ensure you’re prepared before it happens. It’s knowing that it will be there for when you need it.

Right now, with so much stress surrounding COVID-19 and the recession, getting a game plan is important and it doesn’t have to be so scary. Our suggestion? Take a financial health day!

Technically the U.S. recognizes April 7th as a Financial Health Day but you can have your own any day of the week! In fact, it may be even better to get into the habit of scheduling one per quarter. A Financial Health Day is just like a Mental Health Day. It means taking a day for yourself to understand where you are financially. If you don’t even know where to being, start here:

Financial Health Day Checklist

1. Contact your insurance.

Whether you have disability insurance, renters insurance, insurance through your employer — get all these things in place. Talk to the insurance agent about where it is you can cut some costs, what your policy covers and doesn’t cover, and while you’re doing this shop around as well! Even if you don’t switch coverage, you can come back to your current company and say you’ve found a better deal and ask them to match it. Chances are they usually they will, they want to keep your business.

2. Know the facts and get familiar with resources.

If you own a home or are thinking about buying a home, this is a good opportunity to start looking at what rates are out there or what programs are available to you. If you are falling behind on payments for mortgage or rent, make sure you know your state/county requirements as far as eviction laws or what resources they offer. Some resources like United Hands have programs in place that will help pay for your utilities or necessary monthly bills.

3. Take debt inventory.

Make a list of all debts: credit card, personal, car, student, home, etc and order them from highest interest first, working your way down. Then, talk to your lenders! See what they are offering in terms of lowering interest rates or monthly payments during this time. Have a cushion of an emergency fund too, even while you’re trying to pay your debts. Which leads us to…

4. Look at your emergency fund and be realistic with yourself.

Your necessities are completely different than anyone else’s. Some universal necessities are things like: food, the place where we live, health insurance, medication, etc. But you may need some additional necessities like a car, car insurance, or even things like a Disney+ account to entertain the kids while you try to work from home. If you compile a master list like this, you can of course go back and cut things that aren’t a necessity but the point is to paint a comprehensive picture of what your monthly costs are.

5. Shop around.

Now is a good time to look around. Your own banks and credit unions may have more fees while other ones are being more accommodating during this time.

6. Address “runaway spending”.

A few dollars here that you thought you were spending per day may be adding up to be a lot more expensive than you thought. Look for monthly expenses that add up — the ones you never fully let yourself realize how much money you were spending there. Figure out where it is you have your runaway spending and make the necessary changes. For example, that $6 a day oat milk cappuccino may be looking real nice in your pocket over the last couple weeks. Perhaps buy a grinder and pour over and make it a new habit to brew your own each morning.

7- Make a plan.

Have that conversation with yourself about what is a necessity and what you need to do to not only survive this type of recession but what you need to preparing for yourself in the future. By doing this, you are taking the necessary tools to become financially savvy, to be well on your way to becoming financially fit, and having a better future when it comes to your finances and your mental health. Make a game plan and go for it.

You can watch the full webinar recording here on our YouTube channel.

This post was adapted from our webinar lesson with Natalie Torres-Haddad. Natalie is the author of Financially Savvy in 20 Minutes, a two time TEDX Speaker, financial/mental health advocate, and bilingual podcast host. Our favorite mindset tip from her is her 3x3 breathing technique before she pays her bills. Inhale for 3 seconds, hold for 3 seconds, exhale for 3 seconds. Repeat 3 times.