15 April 2024
The news keeps rolling in about one price increase after another, and in the meantime, you feel that more and more is expected of you. You would ideally like to do another master's degree, owning a car is also on the list, and you hope to be able to provide enough for your children in the future, not to mention the current housing crisis and the rising prices associated with it. And what about your pension?
Stress about money. People don't shout it from the rooftops, but they often experience it. Did you know that stress about money can even lead to psychological and health issues?
Therefore, it is more important than ever to achieve financial mindfulness! How? We’re here to help you a bit!
Talk about money (worries)
Talking about money is something many people find quite challenging! People are afraid of being judged, feel ashamed, or fear being excluded from the group. That’s why it’s incredibly good to break this taboo. When you talk about money, you realize that you are not alone. According to CBS, more than 30% of the Dutch population experience money worries. So, it’s very normal to think and talk about this. Discussing your money (worries) is crucial to achieving financial mindfulness. Psychologist Anne Abbenes provides in this article from Nationale Nederlanden 8 tips for discussing your money worries.
The right money mindset
You’ll notice that everyone has different beliefs about money. You are strongly influenced by your upbringing, the people around you, and the culture in which you grew up. Therefore, not only is it important to talk about money, but it can also help to broaden your understanding of the world of finance. Read books, blogs, or watch videos to learn how to manage money better. In doing so, you also explore how other people, for example from different countries, view money.
Ensure that your money mindset is also focused on the long term
Come on, let’s just go to that festival this weekend! Let’s quickly get a new outfit; you saw a super cool jumpsuit on Instagram! Dinner out with the girls tonight? Yes, fun!
If you constantly live in the moment, spending money without thinking and without considering the long term, you will never feel financially mindful.
It takes time to build wealth, and if you only succumb to your short-term needs, you won't be able to focus on your long-term plans.
So sit down for a moment, together with your money. Get a pen and paper and note down your long-term plans. Are you planning to buy a house? Do you want to pursue further studies after graduation? Are you preparing for your retirement? You’ll find that knowing what you want to achieve helps you make wiser financial choices and gives you much more peace of mind. Hello, financial mindfulness!
Have an overview of your income and expenses
It gives incredible peace of mind to have an overview of your financial status, including your income and expenses. Of course, an Excel spreadsheet can help you with this, but did you know that there are also many handy free applications available that can assist you? We wrote a blog about it because we find it important to support everyone under the banner of: together in money! Read it here and discover which application suits you best and helps you on your journey to financial mindfulness.
Don't spend more than 70% of your income
It’s wise not to spend more than 70% of your income so that you can use the remaining 30% to improve your financial situation. By adhering to this rule of thumb, you’ll notice that you’re much more financially zen. Jan Modaal explains well in this article why 70% is such a good benchmark!
Of course, we understand that saving 30% isn’t feasible for everyone. Nibud states that you should at least try to save 10% of your income.
It’s also important to remember that saving, investing, and building wealth are not just for rich people. Anyone can do this, even with a smaller income!
Long-term mindset = SAVING
One aspect of making long-term plans is saving. Many people find it challenging to save. This stems from a prehistoric principle. Long ago, it was important to have food at that moment. Saving something for later? Why would you?
Therefore, it’s understandable that saving feels a bit strange by nature. However, it is not financially mindful to listen to this. It brings you incredible peace of mind when you save, as you reduce the risks you encounter during unforeseen circumstances.
Don’t know where to start? In this blog, we give you tips for setting up a savings plan! Because we stand together in money!
Our Potje application can also help you save money. You can save in advance for different goals, whether alone, with your partner, or with your friends, colleagues, or family. This way, you won’t encounter unforeseen surprises and remain free of financial stress! You can create a pot here or download our application!
Additionally, we offer lots of handy money and savings tips to help you achieve financial zen on our social media channels!
Are you following us on Instagram and LinkedIn? We’ll see you there!
