Financial wellness: the system that works for me
Money has interested me for as long as I can remember. When I was little, my father had a habit of leaving money around the house, and for some reason I decided that if I found it, it was mine. A stupid conclusion, obviously, but I loved having money in my hands and hated spending it.
Being interested in money didn't mean I was good at managing it. I didn't properly learn how to save until my mid twenties, and getting my first credit card at 18 created complete chaos in my head. I earned my own money, but was always behind on the payments, constantly spending money I'd technically already spent.
Today, personal finance is something I actually enjoy. I've sat down with friends many times to go through their income, spending, subscriptions, savings, loans and interest rates, looking at where money disappears and what could be done differently.
Helping someone gain control through a few relatively small changes is incredibly satisfying, and it's made me much more aware of my own financial habits too.
Make a budget you can live with
I've made budgets that looked great in a spreadsheet and were completely unrealistic in real life. There's no point in creating a plan that only works if you stop travelling, going out for dinner, buying nice things or doing things with your friends.
The goal isn't to spend as little as possible. It's to know what you can spend, what you want to prioritise and where you're wasting money without noticing.
There's a big difference between choosing to spend money on a trip or something you've wanted for months and mindlessly spending without knowing what you can afford. A realistic budget gives you control without removing everything you enjoy.
Know your numbers
You don't need the perfect spreadsheet, but you need a system that makes your money easy to understand. Mine has become quite detailed, with separate accounts for almost everything:
1. Everyday account: My salary comes in here, but I rarely keep more than $50 in it.
2. Spending account: A set amount for everyday spending.
3. Food account: A fixed monthly amount for groceries.
4. Bills account: A monthly transfer covering regular bills and expenses.
5. Emergency fund: My goal is to keep three months' income here.
6. Holiday & fun account: Travel, experiences and fun.
7. Gift account: Birthdays and gifts for friends and family.
8. Wish list account: Savings for expensive things I want rather than buying them impulsively.
9. High interest savings account: Longer term savings earning a better interest rate.
10. Monthly investments: A fixed amount invested in funds every month.
11. Retirement investments: Separate long term retirement savings invested in funds.
It may look like a lot of accounts, but it means my money has a purpose before I get the chance to spend it. Your system doesn't need to look like mine. It just needs to work with the life you actually live.
Financial wellness isn't about skipping the dress, the trip or dinner with friends. It's about knowing you can afford it, and being in control of that decision.