It’s a well-known fact that most people nowadays struggle with various forms of stress, and one of the biggest sources is finance. Financial stress is nothing to joke about, and it can be quite difficult to manage. That’s why you need some good coping mechanisms.
Financial stress rears its ugly head when you’re a bit out of the loop with your own finances. A lack of a clear overview and specific knowledge about your finances can leave you feeling out of control, disoriented, and vulnerable. Knowledge is power, so the first thing you need to do is gain knowledge about your own money.
Naturally, financial anxiety is mostly related to not having enough money, or not being able to save or pay off debt. In that case, setting up a budget that you can stick to, hopefully with minimal issues, can help. Creating a budget not only helps to curb the overall amount you are spending, but it also contributes to preventing unnecessary expenses and impulse purchases in general. If you’ve got to stick to a strict budget, you can’t add in those superfluous extras at the cash register.
One way to ensure that you’ve got your bases covered and won’t run out of money for necessities is to set aside the money you absolutely need at the beginning of the month. For example, if you have a loan instalment to pay, pay it first, to make sure that you don’t fall behind. Any money left over after paying loans, rent, groceries, etc. can be saved or spent however you see fit.
There are all sorts of money management strategies you can use to ease your financial stress. Building on the budgeting idea, it can be helpful to divide all of your money into smaller “budgets”: one for groceries, one for rent, one for fun, etc. You can even have physical envelopes for each, if that helps you visualize how much you are spending and how much you have left over. That can relieve stress about money, because you always know you’ve got enough for what you need.
Another great technique is the 50/20/30 method. You divide your income into three different parts, according to how you use the money, and how important it is. 50% goes to essentials, such as rent or mortgage payments, health insurance, car related costs, groceries, etc., 20% goes into savings, and the rest is left for “fun” and “wants”, like shopping, eating out, social activities, etc.
Most of us aren’t aware of what we’re spending, but if we were, it would be a much-needed wake-up call. That’s why apps that help track your expenses are so good with curbing financial stress; they show you exactly how much you are spending and on what, so you are more in tune with your own spending habits.
This enables you to identify harmful behaviors and regulate your spending. In addition, it makes it very easy to spot fraudulent expenses on your accounts.
Probably one of the major reasons why people are stressed about money is debt. Financial stress is always on the rise because of debt-related issues, so the most natural solution is to tackle that. One of the easiest ways to do it is through debt reduction with the help of debt consolidation loans.
Debt consolidation providers like CuraDebt, New Era Debt Solutions, Accredited Debt Relief, Debtmerica Relief and Freedom Debt Relief can help you by streamlining all of your debt. Instead of paying multiple smaller loans with different interest rates and due dates, you are able to reduce the amount and pay just one instalment, in one place, with one interest rate.
Financial stress is a big problem nowadays, but thankfully, you can at least reduce that stress, if not remove it completely from your life. Follow these steps for a healthier relationship with your finances and a solution to achieving financial balance!