5 Straightforward Ways on How to Reduce Stress-Related to Finances
When you suffer from stress and anxiety related to finances you naturally want to keep the topic for yourself. As humans, we tend to avoid painful conversations and situations. Small financial hurdles lead to an accumulation of more major and difficult challenges. Feeling stressed about your finances make it even harder to deal with them.
In the UK alone the average person is over 30 000 pounds in debt and this amount does not include student loans.
So what can you do to reduce the stress related to finances?
1. Deal with Debt Your first step is to evaluate what is your currents financial situation. How much money is coming in and how much you are spending. You can use the old-fashioned way of pen and paper to write your financial situation. Or you can use a platform that will help you have a broad and user-friendly view of your finances.
Educating yourself about how to deal with debt is one of the best ways to reduce the stress related to finances. You can work with debt counselors who can help you renegotiate your debt and in some cases find a way to get a better deal for you. Click here to find out what you can do about your debt.
2. Set a realistic budget The first few months of setting a new budget are the hardest. Once you get the hang of it you will start seeing the results in many aspects of your financial life. You can use a simple budget managing platform, that you like. Most online banking apps have them implemented as a part of the service. A budget will ensure that you cover your immediate expenses and will give you peace of mind.
4. Set up an Emergency Fund Talking about peace of mind and being able to reduce stress related to finance you might consider setting up an emergency fund. For example, a car repair or a leaking shower can be stressful. If you have an emergency fund you will know how you will pay for the repairs. It will make it easier for you to pay your bills, knowing that unexpected expenses are paid from the emergency fund. If you are paying off debt, it is a good idea to keep around 1000 pounds and once you are out of debt you can start building a bigger fund, which can cover 3, 6, or 12 months of living expenses.
3. Stop feeling ashamed about your financial situation Maybe you have made some poor financial decisions in the past. Stop feeling ashamed and consider that that feeling can cause you further stress. Remember getting help and facing your financial situation are the healthier option, rather than not sleeping at night and worrying. There is absolutely no shame in wanting to get better at managing money.
5. Be smart/thrifty with your spending A survey done with 2000 contestants revealed, that people start worrying about debt when their borrowings reach 6000 pounds. Every time you spend money you can make wise and smart choices. For a lot of people using a credit card and overdraft facility is simply a necessity. Having these options available has turned the reality of debt into normality. Being smart with your money means that you shop around for your bigger purchases and have a realistic budget for your necessities.
Overall being stressed with your finances will not make your money problems go away overnight. Start feeling good about becoming debt-free by taking steps towards it. Get advice and use the 6 step process of getting out of debt. Click here to find out more.