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Importance of Financial Boundaries for Financial Self-Care

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Even now, we can imagine a time in the “near-ish” future when New Jersey’s shelter-in-place order will come to an end. The life many of us knew will no longer be the same.

For many, real or imagined financial changes can lead to anxiety and depression if financial self-care is not practiced. For survivors of domestic violence who have experienced financial abuse the potential for financial changes leading to anxiety and depression is even greater. Now is the time to take steps to prepare for this new, yet unknown, future by practicing financial self-care by implementing financial boundaries – to hopefully minimize the potential for anxiety and depression.

So, what are financial boundaries exactly? Financial boundaries are rules put in place to balance the relationship between your personal finances, your loved ones, and yourself for the purpose of making your life healthier and happier. You have the right to take control of your finances. 

Financial goals aren’t the same thing as financial boundaries. Think about the goals you want to attain—then consider what boundaries will help you reach those goals.

Need help brainstorming? Here are some examples of money goals:

  • Paying off a debt
  • Improving your credit score
  • Saving for a deposit on an apartment or a down payment to purchase a home

Can you reach your goals without altering how you spend money? If not, it might be time to set some financial boundaries. There are two types of money boundaries you can set: boundaries for yourself and boundaries for dealing with others.

If you have children or others living with you, you will need to talk to them about setting financial boundaries and these boundaries will help achieve your financial goals. To get their buy-in for new boundaries, include your children in discussions regarding goal setting and spending. Creating a financial vision board that reflects long-term financial goals such as housing, savings and major purchases, such as a car, may also be helpful. These important conversations about delayed purchases of toys or the latest Xbox game may lead to tears and disappointment, but they also contribute to your inner peace and empowerment as you engage in financial self-care.

Following are a few ways financial boundaries can be practiced as part of self-care:

  • Set a limit on eating out each week.
  • Review the monthly budget before making an unplanned purchase; consider how such a purchase will impact your long-term financial goals.
  • Create a holiday spending plan with family and friends and stick to it. 
  • Put your financial needs before others’. When family members ask for money, tell them you need a day to think about it before saying “yes” and take the time to review the impact to your long-term financial goals.

These are just a few examples. You can choose one or two, or even come up with a few customized boundaries. Remember, there will be unexpected financial challenges and change is never easy. However, through daily financial self-care practices such as implanting financial boundaries, the road to financial freedom can be smoother.

If you are interested in speaking with a financial empowerment coach about financial goals, financial self-care or other topics, reach out by Safe+Sound Somerset’s 24/7 call or text hotline at 866-865-1122.


See Also: Financial Empowerment Center