Tuesday, December 6, 2016
Quick And Dirty Tips To Deal With Money Stress
Money and kids are the biggest stresses in most people’s lives. According to Forbes, over one in four Americans have some sort of PTSD-like symptoms resulting from financial stress. And, thanks to declining wages, it looks like the situation is getting worse. It’s not pleasant never knowing whether you’re going to be okay financially or not, so many people are wondering whether there is anything they can do about it.
The good news is that it is possible to do things that help to reduce money anxiety and worry, helping you to think more clearly about your financial situation and enabling you to take the necessary action. Here are some of the different money stresses you face and what you can do to reduce them.
Money Stress Buster #1: Take A Stress Break
One of the biggest causes of money stress has been dubbed “drowning.” This is where your expenses exceed your income, and you can see yourself running out of money in the near future. Often it’s a good idea to take what is called a “stress break” in these situations before you work out how you’re going to solve the problem. This could be anything, from taking a bike ride to walking the dog. Stress breaks that involve exercise help to make you feel more relaxed and more capable of facing your financial worries once you get back home.
Money Stress Buster #2: Discover Your Power
When you think that a financial situation is out of your control, things feel a hundred times worse. But more often than not, there are a hundred things you can do to improve your circumstances.
Instead of taking out a new personal loan, which will cost you big time in the long run, why not sell some of your jewelry, or your car if you can manage to get around on public transport?
Instead of paying through the teeth for your life insurance because of a health problem, why not find no exam life insurance carriers who won’t penalize you for having a pre-existing condition?
Instead of slowly sinking because of your extortionate rent payments, why not move to a smaller house or apartment where you can start saving and build your income?
I think you get the picture.
Money Stress Buster #3: Stay In The Present
Always projecting the worst case scenario of your finances into the future is an excellent way to cause you to lose hope and worry that you’re never going to get enough money to get by. This type of mental habit is actually very destructive to your happiness because you can't control the future, you can only control the present. Focus on what you can do today to boost your income, and don’t assume that only the worst-case scenario will happen. It probably won’t, especially if you do something about it today, like take on additional clients, work more hours at work, or cut back on some of your bad spending habits.
Money Stress Buster #4: Build Wealth
There’s a big difference between income and wealth. Income is whatever you’re getting paid into your bank account on a monthly basis. Wealth is the totality of all your assets, including money in the bank, your car, your house and your investment assets. People who have high incomes might be riding high for a short period of time, but it’s the people who build wealth that really bust stress in the long term. The reason for this is that they are able to survive using their assets and don;t have to live paycheck to paycheck, like 47 percent of Americans. Having wealth often means that you might have to make sacrifices, like not buying a 48-inch curved TV - but it will give you peace of mind if you manage to pull it off.
Money Stress Buster #5: Cut Back On Your Debt
Even if your income exceeds your expenses, it can be stressful to be in debt. Just owing somebody money and knowing that you’re going to have to pay a lot for the privilege can wreak havoc on your emotions. It’s a good idea to make sure that monthly debt obligations don’t exceed more than 40 percent of your income. When they get to 50 percent or 60 percent, you start running out of money for necessities like food, rent, and healthcare. If you have any discretionary income, use this to pay off your existing debts. Also, look for temporary opportunities in the evenings and on weekends to earn extra money to pay off outstanding loans.