Finances and fostering self-care have always been a messy task for people, particularly in the present day. When it comes to Gen Z, striking a harmonious equilibrium between mind and money becomes an increasingly elusive pursuit, leading to feelings of frustration and disappointment. There is no denying the fact that most people in their late teens and early twenties often undergo through overwhelming emotions, owing to the social sphere they live in. Considering the constantly transitioning trends and peer pressure, the concept of self-care often takes a back foot. This unknowingly affects their finances as well.
While most people simply link self-care with mental well-being, it is crucial to understand that the concept is not limited to the same. At its core, self-care refers to the adoption of activities and exploration of initiatives that helps you stay physically and emotionally well. Something that keeps you passively contented. And garnering long-term satisfaction is not a one-time job, it’s a habit. A habit that reflects in your financial well-being as well.
Fuelling Financial Well-being through psychological resilience
Creating a realistic budget that includes necessities and self-care activities is vital for Gen Z’s financial stability and well-being. Allocate around 20% of your pocket for savings to build a safety net and work towards future goals. “Prioritize essential expenses like student loans, utilities and transportation. Review past expenses to accurately gauge costs. Set aside a specific amount for leisure and self-care, such as hobbies, entertainment, fitness, and personal care. This ensures enjoyment without overspending. Consider personal financial limitations and preferences when determining the allocation for self-care. Youngsters can easily strike a balance between necessities and self-care by creating a well-planned budget, allowing them to prioritize their well-being while maintaining financial stability,” says Marc Despallieres, Chief Strategy & Trading Officer, Vantage.
Finding the correct balance between needs and wants
“Gen Z must try to strike a balance between their needs and wants. While self-care is important, it’s essential to differentiate between activities that genuinely contribute to well-being and those that are more discretionary. Gen Z should prioritize meeting their basic needs to establish a solid foundation for stability and growth. Once needs are met, they can allocate resources for genuine self-care activities that promote emotional and physical well-being. Even though this age level is considered way too early for developing financial maturity, Gen Z must exercise discernment to avoid excessive and unnecessary spending on fleeting wants disguised as self-care,” adds Despallieres. The distinction between necessities and wants can be easily blurred for Gen Z, owing to the vast array of options in the consumer-driven sphere. Social media, advertising, and peer influences can induce a sense of urgency to indulge in various products, experiences, or trends. By consciously evaluating the value and long-term impact of each expense, they can make informed decisions aligned with their goals and financial well-being.
Setting priorities
For Gen Z to secure their financial well-being and embrace self-care, they must prioritize financial literacy and investment strategies. Effective asset allocation, even during market turbulence, brings stability and optimal returns. “Seeking guidance from professionals or using beginner-friendly investment apps and online resources helps Gen Z understand the intricacies of the financial market. Prudent investing not only increases self-care but also offers a financial safety net. It lessens financial strain, enabling people to concentrate on their own development and fulfillment. By building a solid financial foundation, Gen Z can achieve mental calm and improved quality of life,” states Despallieres. Caution, risk assessment, and thorough research are vital when making investment decisions that align with Gen Z’s goals and circumstances. They can ensure their financial future while enjoying stability and personal well-being by fusing self-care practices with financial literacy.
In a nutshell, it is of utmost importance to practice self-care activities like meditation, yoga, journaling, reading, etc. for holistic well-being as it makes an individual better equipped to make rational and informed financial decisions. Thus, prioritizing self-care can enhance financial productivity and ability to cope with financial stress.
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