How to Tackle Financial Stress in 2018

How to Tackle Financial Stress in 2018

 

For most people, financial stress is a major source of anxiety. However, it’s crucial to know that worrying won’t solve anything. But answering some simple questions and keeping a few key things in mind can go a long way towards reducing your financial stress & anxiety. The sooner you deal with your financial worries, the faster you’ll improve your overall mood. You’ll enjoy life better if you tackle your financial issues.

So how to reduce your financial stress and be motivated in taking control of your finances? We’ve got some useful tips to help you out:

 

Identify Your Stress Points

Give Some Positive Spin

Know Your Net Worth

Be Realistic

Make the Most of Your Income

Take One Step at a Time

Be Honest

Financial Goals

 

Identify Your Stress Points

What part of your financial situation stresses you out if you think about it too much? Is it saving for your retirement? Do you have credit card debt that doesn’t seem to go down? Knowing how to recognize the cause of your anxiety is the first step. The key is to write down your top 3 biggest financial sources of stress. This way, you’ll be able to identify what you’re up against and make a plan.

Give Some Positive Spin

The way you think about your finances plays a huge part in your financial stress. Start by focusing on some positive things you’ve done with your money. Have you opened a savings account? Do you at least have a retirement account? Instead of bogging yourself down with everything you haven’t done, let’s focus on what you have done and build from there.

Do you have a ton of debt? It’s very stressful when you think to yourself that you’ll never get out of debt. Start by acknowledging your debt and telling yourself, this is the first step but I will get out of debt. Imagine what your financial stress will look like when your debt load finally gets smaller and smaller. Believe in yourself that you can do it, and you will do it.

Start by focusing on some positive things you’ve done

Know Your Net Worth

What are you worth? It’s a question that most avoid because it makes them feel bad. Especially if you’re like the millions of people that have loads of school debt, your net worth is probably negative. But it’s OK! Knowing the difference between what we owe and what we own is often a good wake up call! It shows us that we need to focus on our financial stress and financial situation more closely. It’s also vital in setting financial goals as well as building your financial plan. It is also one way for you to know whether you are actually getting there ahead or not.

Be Realistic

When you know your Net Worth you have a clear picture of what you owe. Be realistic with yourself about your financial situation. You need to know how much you can spend safely each day and each week after you’ve taken care of your bills and debts. Know that you can get yourself out of any financial mess if you make a plan and stick to it. It won’t be easy but the good things in life usually aren’t. Make a promise to yourself about whatever financial goal you want to achieve. The act alone will make you feel better and lower your financial stress (for the short-term).

Finances are like diets. Any diet that is unrealistic depending on your own lifestyle is doomed from the beginning. Overly ambitious financial goals are the same. Make small goals that you know are a bit challenging but that you can achieve. You want to push yourself but not to the point where you just quit. Build momentum and be realistic!

Make a promise to yourself about whatever financial goal you want to achieve

Make the Most out of Your Income

Instead of thinking you don’t have enough money to put towards your goals, try to focus more on how you’ll make the most of your income. It’s important to understand your Cash Flow & how much you can safely spend each day and each week after you’ve taken care of your bills and debts. Take a look at your spending habits, are you spending money with friends or on yourself more? Do you like to buy gifts for people? Do you ever look for deals on groceries? Looking at couponing, price matching and other ways to stretch your dollar can reduce your financial stress and improve your mood. Everyone loves saving money! It’s a great feeling when you got something you wanted or needed and you got a great deal. You just have to put a bit of hustle behind that financial muscle and you’ll find some extra dollars.

It’s important to understand your Cash Flow

Take One Step at a Time

You may not be able to cut your expenses by $100 at first glance.  Choose one category at a time. I recommend you start with groceries. Big ticket items like detergents, toilet paper, cooking oils, meat & vegetables always go on sale. When you start paying attention to buying things you need when they are on-sale, you will easily save $20 on a grocery bill. When it comes to your food, price matching is a great way to get the best price every time.

There will be times where you’ll slip up or you might be in a rush and you’ll just buy whatever you want. It’s NOT the end of the world but be conscious about it. Next time get back to actively looking for deals and that recommitting to the process will keep your financial stress away. Even Lebron James watches his dollars, and he has a lot of them.

Be Honest

One of the best ways to keep yourself on track with your goals & spending is to lean on your relationships. With the help and support of your friends and families, even the hardest task will become much easier. You’ll find being able to talk to friends and family about your issues will feel good and reduce your financial stress. You might even realize that they have some of the same issues you have. Saw a good deal somewhere? Why not share it with them? Send them a quick text or snap and let them know. You’d love it if someone told you about a great deal, so be that person for your friends & family.

Financial stress is a part of our everyday life. Taking small steps towards gaining more control over your thinking and consciously thinking about where your money is going is a good start to reducing that stress. Remember with money you are playing the long game. Anyone who talks about ‘get rich quick’ schemes is hustling you. Make a promise to yourself to get on track. You’ve already read this article and that’s a great start!

“Don’t wait; The time will never be ‘Just Right.” Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.
― George Herbert

Have any other good tips to add? We love to hear from our readers. Comment Below.

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