All of us face financial stress at some point during our lives. It can range from something as simple as figuring out what vacation you can afford to a complex situation such as making decisions about how to manage bills and debts after losing a job. Financial stress reaches far beyond your bank statement, leading to resentment in relationships, mental health issues like depression and anxiety and general health problems such as headaches and high blood pressure.
It’s important to remember that ignoring what’s happening with your bank account and not acknowledging the state of your finances will only make the issues worse. With careful planning and strategic action, you can get greatly reduce your financial stress and improve your life in general. Let’s take a look at four easy steps that can help improve the relationship you have with your money.
TRACK YOUR SPENDING Keeping up with how much money you are spending and what you are purchasing is vital to getting a handle on your financial well-being. While automated payments and mobile apps make it easier to buy things and schedule monthly payments, they can also make it more difficult to keep track of how you are spending your money. You should monitor the pattern and timing of money flowing in and out of your accounts. If you make time at least once a week to take a detailed look at your bank account, it will help reduce the stress and anxiety of tracking your spending and evaluating your financial status.
BUILD AN EMERGENCY FUND Having an emergency fund can ease the stress of unexpected expenses such as a medical crisis or a car in need of major repairs. You can start building the fund by setting aside a small amount of money from each paycheck. This monetary resource can help you avoid using credit cards to pay for unexpected expenses.
TACKLE CREDIT CARD DEBT Credit card debt often causes a lot of stress and worry. If you can’t pay off your balance at the end of the billing cycle, the interest the credit card companies tack on can add up quickly. Use cash or your debit card as much as possible to avoid adding to your credit card debt.
RESIST THE PRESSURE TO KEEP UP WITH THE ONLINE JONESES It’s easy to get envious of friends and relatives based on their social media posts sharing their latest vacation, new home or excursion to a gourmet restaurant. This can lead to anxiety about your own financial status or increasing debt in an attempt to keep with what you see other people sharing via social media. Remember that posts do not give a complete picture of a person’s life and are often dramatically skewed. If you find that social media is causing you to experience financial stress or make poor money decisions, consider deleting your social media account or make other adjustments to lessen the pressure.
PLANNING AND DISCIPLINE CAN LESSEN STRESS
Financial stress can impact all facets of our lives. That’s why it’s so important to pay attention to your bank balances and the flow of income and expenditures. Through having a true picture of your monetary status and taking steps to use your money wisely and plan ahead, you can greatly lessen your financial stress.
