Financial stress is that which occurs when there is a debt due to having expenses greater than what you earn and also due to poor financial management. Like any other type of stress, it produces symptoms such as anxiety and sleep problems. In fact, it’s much more common than you might think.
Managing financial stress also leads to improved financial organization. The first sign that you’re going through it is that you’re spending almost your entire paycheck on paying off debts to others or on credit cards. Be careful because this type of stress can lead to physical and mental problems.
However, don’t worry. Here are some tips to help you identify and manage financial stress better, as well as to give you the peace of mind that comes with managing your income.
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Keep track of all your income and expenses
Take a calculator, paper and pen, and make a note of your income and expenses.
You should certainly start by taking control of the situation. This point involves keeping track of both your income and your expenses. There are some that are fixed and important such as rent and utilities; by taking note of all this, you will be able to see what unnecessary expenses you are making so far and what your margin of savings is.
Be realistic and consistent about your income and expenses
Spending more than you earn is a habit that can lead to problems in your financial, physical and mental health. That’s why you should start by being realistic and spending only what you can afford.
If you want to start managing financial stress, then you must also be clear about your financial limitations. To do this, you can make a list of your income, your expenses and your debts. You should not feel bad about it, as this step is critical to your mental health and financial well-being.
Allocate a percentage of your money to savings
Yes, saving is very important to keep financial stress at bay. To do this, it is necessary to identify those superfluous or unnecessary expenses that you are making up to now.
Instead of spending that money, you can keep it where you know you won’t touch it and, thus, it will be a kind of economic fund that you will have available in case of any emergency.
Even if you can only save $20 a month, having $240 saved can be your salvation if, for example, you have an unexpected visit to the dentist.
Avoid superfluous expenses
Avoid excess whimsy and save that money instead.
Superfluous expenses are one of the main causes that are not allowing you to manage financial stress. These are all the ones that don’t add anything useful to your life, but are just whims.
It is understandable that, on some occasions, you make emergency expenses that were not in the plan; however, to be more calm you should reduce the other unnecessary expenses of the month, so that you can assume the unexpected ones with more calm.
Managing financial stress properly is crucial to your overall health. Not getting a good night’s sleep from thinking about debt is certainly something that could affect you over the years. If you want, you can also help yourself by practicing yoga or any type of exercise you like; this will drain your energy and make you feel better.
With these tips, managing financial stress will be much easier. Don’t be embarrassed to ask for help if you think you need it; with the help of a trusted professional, you will be able to get ahead and control your finances much better in general.