There are many reasons why you might be stressed out about your finances: Accounting problems, high debt, calls from the IRS – and the list can go on. Recent surveys have shown that the biggest stressor on a relationship is money. Stress from one aspect of your life can affect every other aspect of your life. What was once an easy task might be something you now struggle to accomplish with your financial worries top of mind. Addressing your stress and finding a remedy is not an easy task, but it is a necessary one. Here are five things that you can do to reduce your stress and get your finances back on track.
1. Save Up
Saving up money is much easier said than done, but having a stash of cash in a backup account can provide you with some much needed peace of mind for when something unexpected occurs. One of the best ways to save money is by setting an attainable goal for yourself. The first step is to saving money is recording your expenses. Create a view of your expenses by breaking down purchases by category. Once you have assessed what your expenses are like for a given month, you are now able to create a workable budget. Within your budget, create a savings category which will set aside at least 10-15% of your income. By sticking to a budget, you are insured a set percentage of your income as savings.
2. Continuing Education
Banks and other financial institutions are bombarding consumers with credit options to pay off other credit balances. Without proper knowledge of all the moving parts, it’s never been easier to wind up in an undesirable financial situation. Many people have limited knowledge when it comes to credit, in fact, lack of financial understanding has been labeled as one of the major reasons behind savings and investing problems faced by Americans. An emphasis needs to be placed on furthering financial knowledge. This knowledge will help to combat stress associated with big financial when the time comes.
3. Change Perspective
Stress is an unavoidable part of life. However with that said, there are always measures that we can take to promote a healthy outlook on our financial situations. Perhaps there is something very subtle within your daily routine that is the cause of your financial anxiety. Changing things up might work wonders for you. Reevaluate your spending habits and make slight changes. Do you think you spend a bit too much on X product? Why not cut back a bit and determine later on whether reducing your expenditure is doable on a continual basis. Changing your surroundings by going someplace new or picking up a new hobby might be just what you need for a renewed perspective, a perspective that minimizes stress.
4. Stay Active
Yes, that is right, we recommend physical activities to relieve your financial worries. According to the American Psychological Association, 72% of millennials state that they exercise once a week. Half of that group reportedly feels less stressed after their workouts. Similarly to “Change Perspective”, staying active offers revitalizes your routine and reduces stress inducing factors.
5. Let’s Talk
There are a whole host of options to choose from when dealing with emotional exhaustion and financial stress. If friends, family, colleagues, or other types of resource are not providing you with the proper support you need, do not hesitate to seek professional help. A financial advisor can provide you with the proper guidance you need to address your money problems head on and, in turn, reducing stress.