4 Financial Well-Being Tips for 2024

Well-being can be split into three broad categories; Physical, Mental & Financial.

Get the balance right between these three and you have the building blocks to live a long life full of fulfillment and purpose.

Unfortunately, a lack of financial well-being can bleed negatively over into the other categories, especially mental health.

In 2019, PwC conducted a study on the financial wellbeing of consumers working in the USA. It found that personal finances are the biggest stressor of all – even greater than any other stressor combined.

Financial stress was mainly caused by respondents’ income, debt and difficulties in saving money. Even small unexpected expenses caused considerable stress.

With this in mind and 2024 underway, let’s discuss some tips you can use to make the coming year one where your financial well-being improves for the better and finances are no longer a cause of stress or anxiety.

1. Don’t Think About Your Finances All the Time

This may seem slightly counter-intuitive, but having money on your mind 24/7 is probably the worst thing you can do, even if you think you’re actively “problem-solving” or trying to figure out ways to improve your situation.

The stress associated with constantly devoting your attention to your financial situation, especially if you’re struggling more than you’d like, will begin to affect your behaviour, relationships and overall health in a negative way.

Let’s face it, how many of us actively make good decisions when we’re feeling stressed and overwhelmed? I know i don’t.

The seeds of financial well-being begin with cultivating a feeling of being in control of your finances and having a plan that you diligently work towards.

Will you need to spend some time reviewing your progress, or altering your plan depending on changing circumstances - Undoubtedly.

That said, do it in moderation. Personally i only spend a handful of hours per month reviewing my budget or thinking about the future direction of my finances and i find that’s enough.

Monitor your progress at a given interval (i.e once a month), make any tweaks you need to and celebrate the small wins as you get closer to your goals. This will create a positive feedback loop that will be helpful in maintaining a positive money mindset and keep you motivated.

2. Form healthy money habits and the rest will follow

As with anything in life, things are a lot easier when we’ve built them into a habit.

Saving money or investing it to build future wealth are activities that i would strongly suggest you look to automate by setting up direct transfers from your current account where your salary is received. This should be set up to be taken from your current account the day after you receive your pay

By taking away the friction of having to manually “pay yourself first”, you remove the temptation of spending your money unwisely and you can then spend what you have remaining with the comfort of knowing that you have put money away for your future self.

A further healthy money habit i would also encourage everyone to set up and follow is to create and stick to a budget of some kind. This does not need to be in excruciating detail, but even the thought process of knowing where you want you money to be going will do the world of good.

For beginners, i’d suggest following the 50 / 30 / 20 budget where you allocate your monthly salary to 50% needs (housing, bills, groceries, transportation etc) 20% to savings & investing and 30% to wants (eating out, travelling, holidays, clothes etc).

3. Talk openly about your financial goals and your progress against them

Financial goals, such as paying off credit card debt or getting your savings to reach a specific number, tend to take a little longer to achieve. It’s natural to feel discouraged at the speed of progress.

Similarly to how having a gym buddy makes you more accountable to go regularly, sharing your financial aspirations and goals with somebody and talking about how you’re doing regularly adds a layer of accountability to your financial journey that is supremely beneficial.

Having that added support can boost your motivation and make it easier for your positive behaviours and changes to become lasting habits.

As for who this person should be, it can be anyone you trust such as family, close friends or perhaps even a work mentor or someone in your local community who you trust.

If possible, finding someone who has similar goals as yourself would be great as then you can talk openly with someone going through the same process as yourself and understands on a more personal level the emotions you’re feeling.

4. Develop your financial literacy & skills

Financial literacy is quite frankly vastly under-taught in the UK school system.

A large part of the stress and anxiety that people feel around money is that they simply do not feel sufficiently educated about the subject of money. The fact that topics such as credit cards, pensions, tax free ISAs, budgeting, investing, tax, mortgages etc are not actively taught to teenagers as they enter adulthood blows my mind.

Thankfully with social media and the internet, there is a plethora of information and resources in the realm of personal finance which is freely available in the form of blog posts, YouTube videos and online courses.

Do not use a current lack of knowledge as an excuse to act irresponsibly when it comes to your finances. If there are topics you know you don’t know as much about as you would like, make the effort to educate yourself about it.

If you find finance a difficult topic to understand, or you’re just not sure of the next step you should take in your situation, consider if you’d be willing to pay for some personal finance coaching / workshops (see the link to my own personal finance consultation form at the end of this newsletter).

People hire personal trainers at the gym to help them train their physical well-being. Personal finance coaching is the same thing but for your financial well-being.

For those reading thinking that i’m being a little self-interested by advising personal finance coaching just because it’s a service i offer, I’ll mention that by no means do i think it’s a necessity.

All of the information you’d need to become financially literate is out there freely available to use.

However, some people don’t have the time to go away and put in the effort to learn all the things they’d need by themselves and would rather speak with someone who already has that knowledge and life experience to point them in the right direction.

Also, some people just understand better when they’re taught and can ask questions in an interactive way specific to them.

Regardless of the way it’s done, learning the essentials about how money works and implementing your own financial plan as a result is something that if done correctly, will set you up for a future free from financial worry

Belated Happy New Year everyone. I hope 2024 is a great year for you all.

For my part, i’m going to do my damnedest to make sure i’m as consistent as possible with this newsletter

Zain

If you’re feeling unsure about your financial future, or if you just don’t have as solid a grasp over financial concepts as you’d like, i’d love to help via a 1:1 financial coaching session!

We will discuss your current situation, the potential challenges you’re facing and together come up with a plan of action to get you to where you want to be.

Please fill out the linked consultation form and i’ll be in touch https://eu.jotform.com/form/233086136375054