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.

Not Sure What To Do With Your Savings? Here's Some Ideas

If you have been very careful to save as much money as possible over the past few years, the chances are that you have managed to build up a nice little nest egg. But now comes the big question: what exactly are you meant to do with it now? You will be happy to hear that there are a few different options. Here are some of the most common.

Invest It

There isn’t much point keeping all your savings in a bank account. Even the high-interest accounts don’t pay out much interest. If your cash stays in a savings account, it will hardly grow at all. For this reason, many people choose to invest their savings. Sure, there is a chance that they might decrease in value, but if you stick with your investments, they should increase over time. There are plenty of ways in which you can minimize the risk of investing, though. If you are still put off by the idea of putting your money in a risky investment, you should speak to a wealth management adviser. They will be able to figure out which investments are the best for you and your money. You can find out more about wealth management advisors by taking a look at Ian Filippini LinkedIn.

Get Rid Of Any Debt

Do you have any loans or credit cards that you need to pay off at some point? It is better to simply bite the bullet and pay them off right away. Not only will this get your lenders off your back, but it also means you don’t have to worry about all the interest that was being added t your debt each month. Over time, this interest could build up into a sizeable sum, and you will be left with a considerably higher sum to pay off than what you lent in the first place.

Pay More Towards Your Mortgage

Did you know that you can overpay on your mortgage payments if you want? This is another great way to save yourself from interest. Many people choose to overpay their payments whenever they can. That’s because it will lower the overall amount that they need to repay. And the lower the total amount, the lower the interest will be that gets added to your mortgage each month.

Build Your Retirement Savings

It is incredibly important to start saving towards your retirement whenever you can afford it. If you already have started, it is a good idea to supplement your regular payments with cash from your savings. If you haven’t already got a private pension, it could be a good idea to use your savings to set one up. You will find that this brings many benefits, such as tax benefits. Depending on your income, these benefits could add up to 50% to your monthly payments!

Hopefully, you now have a better idea of some of the wise things you can do with all your savings. And you will be able to watch your nest egg grow even further!

Why Property Should Be Your Next Investment

For anyone who is keen to earn a little more money, there are plenty of options available today. Regular readers of this blog will know that there are countless ways you can bring in more money rapidly. However, they are not all made equal, and sometimes the most difficult decision is knowing which to go for. If you have some spare capital, and you want to turn it into more, then investment is often the best way forward. Now, we all know that there are countless options for what to invest in. But in this post, we are going to take a look at property investment. Here are a few reasons why investing in property just might be your best next move.

Increasing House Prices

When you are considering investment of any kind, one of the major decisions you need to make is what to invest in. And the best way to figure that out is to compare the various markets which you are considering for investment. There is a very good reason that many people often turn to property investment, and it is that the housing market is such a reliable one to get involved in. as with anything else, it is not set in stone, and it does waver from time to time. But in general, house prices are increasing and they are likely to continue to do so until the next great recession. That will probably not be for a long time now, so this is as good a time as any to start investing in property.

High Yield

One of the most important things to consider in any investment is what kind of return you can expect. After all, the return is the whole point. If you are not happy with what you are actually getting back, then there is little point in continuing with that investment. To that end, be sure to think about this carefully when you are making any kind of investment. In terms of property investment, you are bound to be in a good position no matter what. Rental yields are in a good place at the moment, and with rising prices they are bound to improve even more. This high yield might just be all you need to hear to make your investment decision. Investing in houses for rent is likely to bring high returns before too long.

Low Interest Rates

It goes without saying that, as well as looking for decent returns, you are also hoping to pay out as little as possible. Widening this gap is ultimately what it’s all about, so you need to make sure you are bearing that in mind. The good news with property investment is that interest rates are at a significant low at the moment. This means that your mortgage will not cost you as much as it would have, say, five years ago. This makes now an ideal time to get into property investment in a big way. If you are trying to decide between a few different options, this might help to tip the balance somewhat.

5 Hidden Costs of Running A Business

You may think you have it all covered. You’ve accounted for the rent, for the cost of utilities and the staff you’ll need. But what other hidden snags should you be aware of. If you’re just venturing into business for the first time, here are 5 hidden costs that you may have overlooked when budgeting

Insurance

Running a business can come with multiple insurance payments, some of which are compulsory, others of which aren’t but are generally recommended. Employer’s Liability Insurance is the main compulsory one (although if you don’t have staff and you’re solely running the business you don’t need it) protecting you against staff who are ill or injured and staff that make claims against you.

Other insurance types can protect you against property damage, public claims, professional indemnity and faulty products given to you by the manufacturer. In some businesses, certain insurance types may be less suited than others. Researching all these can get you the best deal.

Payment technology

For those setting up a business in retail, a till and card reader can be a last minute purchase. Shop around to get the best deal on these items. If your business is likely to dealing with credit cards, you may need a credit card terminal too.

For businesses that deal with transactions online, make sure you have a secure payment method set up. This could mean investing in good digital security to make sure the account details of yourself and your clients are safe.

Marketing

Some people only start looking into marketing once they’ve got their business working, then realising they don’t have the adequate amount of money for it. A large chunk of your budget should go into marketing and you should start doing it before setting up your business, telling people when your business opens and building up hype. Marketing should not be seen as a one-off expense at the beginning, but a regular payment to keep your business constantly expanding.

Accounting

Unless you’re already a dab hand with figures, you should probably think about hiring an accountant to handle your taxes and expenses. This will free up the time slaving over spreadsheets, allowing you to focus on other business aspects. Shop around for accountants that best suit your area of expertise. Most small businesses shouldn’t need an expensive accountant, unless the nature of your business is complex monetary issues.

Utensils & equipment

There is some equipment such as computers and desks for an office and table and chairs for a restaurant that you’ll have already budgeted for. But other small items such as printer ink and receipt paper may well slip your mind and only become clear days before opening business (or even once you’ve started business). Budget beforehand for all the items that you can think of and then leave some extra money aside for last-minute equipment purchases that you’re likely to have forgotten. Having a grand spare to dip into can act as a nice safety net, especially when starting a business.

Get Cold Feet When Investing? Check Out These Ways To Minimise Risk

Investing in anything is risky - but some investors would rather sell their own kidneys than expose their hard earned money to the whims of the market. The good news is that there are things that investors can do to mitigate some of the risks they face.

Here’s what to do.

Build Your Own Personal Board Of Advisors

Creating a board of advisors is a crucial part of any investor’s strategy. It’s how they figure out which investments are worth their while, and which are likely to lose them money. A board of advisors aren’t usually a group of people you pay cash. Instead, they get a return on things like stock options to incentivise them to give you the right advice. Usually, advisors are made up of industry experts and people with inside knowledge of current trend in technology, what is likely to succeed, and what is liable to fail.

Pool Your Investments With Other Investors

Debt funding is becoming an increasingly important tool for risk averse investors. Here, investors put their money into a pot with a group of other investors, investing in the very same companies as professionals. Investors essentially buy a share of a mutual fund that is expected to pay out in the future. This helps to lower risk among a range of different assets, providing a steady income stream as a return.

Government Bonds

Government bonds have been, and look set to continue to be, the risk-averse investment option of choice. Because governments will always be able to tax the population in the future, investors are guaranteed repayments. Interest rates can be low for short-term bonds, between 2 and 3 percent usually, depending on the country. But for long term bond, like 10-year bonds, the yield can be anywhere north of 7 percent per year, making them a much more attractive investment.

Get A Grip On Systemic Risk

Understanding what systemic risk is is important for investors. Many investors think that they are safe because they hold assets across a broad spectrum of financial products, but if the whole market tanks, they’re screwed. The solution is to have an understanding of systemic risks and how to preserve wealth just in case all conventional assets fall in value.

For instance, today’s banking sector represents a systemic risk to the global economy. Here we have a bunch of banks which are still highly levered up, most of which are owed debts their customers can never repay. If a bank were to fail, there would be contagion across global markets, and practically every stock price in the world would fall as a result.

There are assets, like gold and silver, however, which fared very well during the last financial crisis and represent unconventional investments that can help preserve wealth during a crisis. Some investors now advise keeping a portion of your portfolio in physical assets that don’t track the stock market, in order to protect yourself against future, systemic risk in the economy. Given that many global agencies see a new recession just around the corner, their advice sounds like a good idea.

Get Prepared And Stay Solvent: Seven Financial Situations To Look Out For

In life, you can never be too prepared – and your finances are generally the area that require more planning than anything else. Not only do you want to be prepared for yourself, but you want to ensure that your close family members will all be okay. Here are some tips on how to handle your finances at times of stress...

Divorce

In a divorce, it’s important to make sure that you protect yourself and your children. Even if you’re blindsided by it, go to a lawyer immediately – even if your spouse makes promises, chances are the promises won’t end up actually happening and that ultimately they’ll be selfish in the end. Don’t place any trust in them – if you’re getting divorced, chances are they aren’t the trustworthy person you once assumed they were anyway. Your first priority needs to be to contact a lawyer and protect your assets so you can get your financial future settled as soon as possible. If possible, try to keep away from going through the courts and go for mediation instead. Not only is it less unsettling and traumatic, but it will also be cheaper in the long run.

Bereavement

Losing one of your loved ones is one of the most traumatic things that can happen to you, so it’s important to make sure that their finances are in order, to prevent there being more issues somewhere down the line. If you know that your loved one sadly doesn’t have much time left, ensure that their will is clear and sorted out and that you’ve spoken to an accountant about it. You should also make sure that you have power of attorney, if they’re no longer capable of making their own decisions. You should ensure that you have a life insurance policy and that you have money put away for your own funeral for any worst case scenarios – we don’t know what’s around the corner and it’s important to put as little pressure on your family in a difficult situation as possible.

Ill Health In Your Family

Everyone’s nightmare scenario is ill health in your close family. Although it isn’t something you ever want to think about, it’s important that you’re prepared for every possibility. If you’re a parent, you’ll know that jobs with flexibility are key to your success at being a huge part of your everyday family life. This flexibility would be absolutely invaluable to you if you did have to factor the ill health of your family members into your working life, as your day to day would become considerably more unpredictable. In addition, you may feel the need to start working part time instead of full time. If you have a nest egg in the bank to break your fall if you do so, you’ll feel much more able to take whatever option feels right.

Residential Care

More and more these days, many countries across the world are experiencing ageing populations. Although it’s obviously a joy that people have their grandparents around for longer, it also becomes difficult when elderly people become too frail to live at home by themselves. If they have to go into residential care, it’s likely to be a traumatic situation both emotionally and financially for you. Aside from the guilt you may feel – which you should endeavour to put to one side, because you’re doing what’s best for your family – there are often a lot of financial implications. Talk to the manager of the residential home about the possibility of help from the state. In addition, if your loved one owns a home then you could either sell it and use the proceeds or rent it out to tenants to gain an income to pay the home fees.

Personal Injuries

If you have experienced a personal injury or illness, chances are it will affect your career negatively because of days of absence from the workplace and possible difficulties doing the job to the same extent that you did before your injury. If your workplace was one of the reasons that you got injured, talk to personal injury lawyers. If you’re looking for the best lawyers Gersowitz Libo & Korek would be a firm that you should look at - do some googling to find what’s best for you. It’s important that you get what you’re entitled to so that your future is made more safe and certain.

Parental Leave

What’s more important than spending as much time as you possibly can with your newborn baby? Forming that connection in your child’s earliest days is important to you, your partner and of course the baby itself. It will help you feel more confident about taking care of the baby by yourself in the future, and help you form a close and loving relationship in the long term. It’s important, then, to understand your company’s policy for parental leave. Every company – and indeed every country – has different rules, and if you’re planning to have a family this might be something that you want to take into account when accepting jobs. If you need to take unpaid parental leave, make sure that you’ve planned for it throughout the pregnancy. Making cutbacks like moving to a cheaper phone contract will be worth it for the connection you’ll form with your child.

Windfalls

Make sure you’re financially informed in the case of any windfalls that might happen to you, like big bonuses or inheritances. Of course, windfalls are generally very much welcome – but if you spend it on the wrong thing, you might end up regretting your actions pretty quickly. First of all, make sure that any credit card debts are paid off and that you’ve put a good sum of money away in the bank for a rainy day. The next thing that many people do is either save for a deposit for a house or pay off a chunk of their mortgage. Long term, this seems like the best option. Investing in property means that you’ll always have something concrete to show for your money – if you’ve received a larger sum, you could buy an investment property to rent out, meaning that you’ve turned your windfall into a regular salary.