There are many reasons for financial stress – low income, large amount of debt, overwhelming expenses, and even marriage to a person who has zero money skills. As bad as these are, you can pick up skills to reduce your financial worries and stress less about money. Below are some tips that can help you function better starting today.
1. Write a budget.
If you want to take control of your money, sit down and write a budget. This will help you plan when and how you are going to spend your money. Just add all of your expenses and saving goals to your budget. The first few months may be a challenge, but keep going and adjusting until you are able to see how your money flows and make it work for your needs.
2. Save for an emergency fund.
The pandemic is the best excuse for an emergency fund. You never really know what is happening tomorrow so it is best to be prepared for unexpected emergencies and other unforeseen financial problems. Your stress will lower immediately knowing that you can afford a trip to the hospital or a major home repair. At the same time, your peace of mind will increase. Start to save at least $1,000 in your emergency fund until you are out of debt. Then you should aim to have three to six months’ living expenses set aside.
3. Learn from others.
Financial problems can be truly overwhelming. Remember that you can always ask for help! Look for classes on basic money management, investing, budgeting, or other related topics that will help you succeed financially. Alternatively, you can speak with a financial planner who can help you write a long-term savings plan and investing strategy.
4. Act on your issues.
Review your financial situation and analyze where the problem is coming from. It could either be an income issue or a spending issue. If you learn that you do not make enough money to pay all your bills, come up with ways to remedy the situation. On the other hand, if it is a spending problem, discipline yourself and have trusted family and friends onboard to offer your support and help lower the overall stress that you are feeling.