5 Actionable Ways To Deal With Financial Stress

5 Actionable Ways To Deal With Financial Stress

By Dana Hughes | Contributor on September 19, 2018
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Photo Credit: iStock

Financial stress can come from many areas including family responsibilities, debts, and low income. In fact, money is one of the significant causes of stress and strife in most relationships. Unfortunately, being stressed has a ripple effect on other areas of your life. Some people have a hard time at work since they can’t concentrate for long and when they go home, it becomes difficult to pay attention to your relationships and it is easy to become insensitive.

But if you can find a way to lower your stress, it is possible to have a better life and you can easily relax when you know your financial plans are working. However, there are several steps you can take to help you eliminate the unwanted stress in your life. Basically, having more cash doesn’t make you immune to financial stress; the important thing is to spend the money wisely on things that add value to your life.

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Create a personal budget

From the surface, it is easy to think that a budget will increase your worries about money. On the contrary, this is the most functional tool that can assist you when you want to regain control of your finances. Basically, it makes it easy to decide how your funds are going to be spent. As such, this is a plan that defines expenses to make sure your savings goals are attained automatically. Most importantly, it can help you free some money to eliminate your debt with time.

When you have just started budgeting, life can be quite difficult but as you get habituated to the task; it becomes second nature and you intuitively understand how to allocate your income. Since a budget helps you take the control of your financial situation, it is a great tool to help you stop stressing about money. The best strategy is to begin with expenses for one month and from there, you can figure out how to free up more money as time goes.

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Create an emergency fund

An emergency fund can be loosely defined as a special amount of money that you have kept somewhere to help you deal with a financial emergency or any expense that creeps on you. While some expenses like house repairs and automobile repairs can demand lots of money, you will be calm if you know for sure that you have some money to handle the expenses. Most importantly, it helps you stick to your budget since you will just tap into your emergency fund and pay for the unplanned expenses.

If you have some debts to deal with, it is best if you accumulate about $1000 in your emergency fund until you have eliminated all your debts. After you become debt free, you can now focus on accumulating an amount that is enough to cover about six months of your expenses.

However, creating an emergency fund can be a daunting task especially when you have been struggling with finances. To get started, set aside about $100 every month and after your budget is fully functional, deposit any cash you save to the emergency fund. If this seems far out of reach, try selling a few items that are lying idle in your house and you will get better sleep knowing you have something to fall back to.

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Figure out some changes to make to your life

More often than not, people who have difficulties with their financial lives are struggling with low incomes or higher spending. On the extreme, it can be a function of the two factors. If you think your income is not sufficient, the best thing is to figure out how you can earn more. You may choose to develop your skills further so that you can demand a higher salary. If spending is your greatest weakness, it is important to join some focus groups aimed at helping people manage their expenses.

After you have an actionable plan that can assist you to improve your situation, it becomes easy to reduce the stress levels. One of the most effective ways of deciding which items to cut is figuring out the long-term cost of the expenses because it simplifies the process. Nevertheless, change is seldom easy and it is prudent to start with smaller steps and graduate to bigger objectives with time.

It is important to realize that this is about the journey hence you shouldn’t give up when faced with temporary failure. This implies that even when you miss your weekly target, you should strive to achieve it next time. Most importantly, adjust your plan so that it fits into your lifestyle. In addition, there is nothing wrong with taking a short break once in a while as long as you stay focused on your financial goals.

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Get some help

If you are facing a difficult situation and your finances are in a mess due to poor budgeting and spending habits, there is no shame in reaching out for help. It is possible to take an integrated class on money management an investment which is normally designed to help you execute a plan that can lead to a prosperous financial future. Most importantly, you need to know that your case isn’t isolated and you can always reach out to a financial planner for assistance with retirement plans.

If a debt is weighing you down, a credit counseling agency can assist you to put your debt into perspective. At times, you can relieve the stress after having a conversation with someone. Normally, it introduces an outside perspective to your situation and helps you point out something you may have been missing. At the same time, you can be more accountable to the person and you will be reporting the progress. Whether you choose to talk to a friend or a support group, the fact that you have to report your progress makes it easy to stick to your budget and avoid worthless expenses.

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Try to find a positive aspect to relieve the stress

To most people, it is easy to think this is not a lasting solution to financial stress. The truth is that it can make a huge difference about how you view your financial situation. To do this, you only need to keep track of your financial progress as you execute the plans laid down. By focusing on the positive aspects of life can go a long way toward lowering your worries.

If it is possible, try finding an outlet that doesn’t strain your budget. Basically, doing some regular exercises can help eliminate anxiety and help you think straight. Most importantly, it is easier to face your problems and come up with actionable solutions when your mind is clear without the influence of daily stress.

Financial stress can be very damaging to your overall life if it is allowed to accumulate for a long time. In fact, it only ends up making your situation worse because it has negative effects on other areas of your life. As such, it is important to figure out how to deal with any worries about money before it becomes a chronic problem. By creating a good budget and establishing an emergency fund, you can reduce the daily stress about money since you know that you have a plan that will eventually lead you to financial freedom.



3 COMMENTS

  1. Most people adjust their lifestyle to fit their income. So no matter how much you earn, this makes it hard to pay down debt, save, stash away an emergency fund, or have extra money to invest. A side hustle or two can be the key to achieving financial stability and getting ahead. Different side jobs are better suited

  2. human element comes in, there’s always the possibility for mistakes. This could leave our bets exposed on him/ her earn honey so thats y

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