Financial stress refers to the difficulty in addressing basic financial commitments because of a shortage of money. This stress can stem from not earning enough money, being in debt, expense of raising kids, or being married to someone who doesn’t make wise financial decisions.
If you’re worried about money, you’re not alone because many of us are dealing with different financial stress and uncertainties. But the good news is, we have gathered some helpful tips to help you deal with financial stress and be able to see actual progress.
TIP #1: Gather the Facts
Tracking your income regarding your expenses can seem to be a lot of work, but it is one of the most crucial steps to take hold of your finances. To illustrate, determine how much money you are earning on a weekly basis, then subtract all your daily bills and debts.
You’ll get a better understanding of where your money goes, when you gather the facts about your income relative to your expenses and debts. And you won’t fall into the endless cycle of asking yourself “where did all my money go?” by the end of each month.
TIP #2: Focus on What You Can Control
If you spend more than what you earn, perhaps it’s time to cut down on your daily spending. This is challenging to most people, but it is important if you want to reach your financial goals, because no one is accountable for your money, but you. You can start by decreasing your spending on wants and focusing on your primary needs.
TIP #3: Budget
Every great financial plan has a sound budget. Keep track of every penny that enters or leaves your wallet. Although this can seem to be a tedious task, budgeting can help eliminate unnecessary spending. In doing this you can either go with the traditional paper and pen tracking, or you can use budgeting applications that you can download on your mobile phone for free.
TIP #4: Work on a Plan to Boost Your Income
Another tip that you can incorporate into your life is to find more sources of income. Find a side hustle, start an online business, or look for a better paying job to earn a little extra money that you can save or use for paying existing debts. For example, buy and resell things online, or work as a freelance writer for companies.
TIP #5: Start an Emergency Fund
It is always advisable to have emergency funds in place that can cover your living expenses for 3 to 6 months. This can help you cover unexpected financial events, such as medical costs, losing your job, or housing repairs. You can start small by saving loose change and increase by setting automatic bank transfers into your emergency funds.
TIP #6: Find Ways to Relax
Finding time to relax in your hectic schedule is as important as grinding and working hard. You can either have minute-long breaks or spend a weekend outside the city. It’s important to prevent burnout, as a regulated mood increases your learning and memory function.
Conclusion
Although any stress can take a toll on one’s health, financial-related stress issues can be toxic and can negatively affect a person’s health and mental well-being. But luckily, you can ease this stress by gathering the facts about your income and expenses, focusing on what you can control, creating a sound budget, finding extra sources of income, saving up for emergency funds, and relaxing. By following these tips, you can take control of your finances and see actual progress.
