Financial stress is something you should away from. Whether you’re into a job or a business, you must have been through it. It’s the stress that usually arises because of the incapability of managing one’s finances. Letting financial stress seep into your mind has bad side effects.
However, there are simple solutions that work. If you want to manage financial stress well, read along. In this blog, we’ll talk about what leads to financial stress and how to deal with it. So, let’s start: –
What causes financial stress?
Here are some common reasons behind financial stress: –
Spending more than you earn
It may sound cliche but it’s real. Most people face financial stress because of spending too much money. Let say you earn $200 a week. Now, if you spend most of it on a new pair of shoes, what will you eat?
This is something still manageable. In severe cases, people take credits to buy expensive things and then are unable to pay them back. And this eventually leads to financial stress.
No emergency funds
Sometimes our future scares us the most. Having nothing or too little in your emergency funds can make you feel fearful. It usually happens when you cannot spare some extra money from your salary.
Not earning enough
You may not be spending rashly, but you may not be earning well either. Sometimes, you spend money only on necessities and still end up having nothing to save. It usually happens because of low income which is a big reason for financial stress.
Impact of financial stress on your life
Here is what a financially stressful life can do: –
Unhealthy Lifestyle
A financially stressful life can change your lifestyle entirely. A survey in 2014 showed therearound 33% of people in the USA switched to junk food and alcohol to manage stress.
Bad Mental & Physical Health
Poor financial condition or stress can affect you both physically and mentally. It can lead to migraine, heart diseases, hair fall, diabetes etc. Studies show that people with higher debts or poor financial condition suffer from anxiety and depression than others.
Poor Healthcare
Healthcare is quite expensive yet important these days. However, people with less income usually ignore its importance. But delaying or ignoring healthcare is going to affect you in a pretty bad way. A survey in 2018 stated that around 29% of people in the USA delay healthcare because of the high costs.
Finally: How can you cope up with Financial stress
The solutions are fairly simple and implementable. So, let’s begin: –
- Get Professional Help
This point was originally meant to be on number three. However, if your mind is not clear and stress-free, you won’t implement the below pointers. So, if your mind is overwhelmed because of financial stress, ask for help.
From whom? Well, you can reach out to Regional Psychologists. These guys can help you effectively deal with stress. Once you’re done treating your mind, you can focus on the below pointers better.
- Craft a budget
We know you’re under stress. But you need to start off with something positive to improve. Create a budget. It should include what your income and monthly expenses are. If there are any unnecessary expenses, strike them off.
Spend money where it’s necessary. Put this into practice, and you’ll see the difference. This method is going to help if you earn decent money but spend too much.
- Stop Digging
“If you find yourself in a hole, stop digging” This is a famous quote from Will Rogers. It means if you’re already under debt, don’t ask for more. Your situation might demand a debt but try to avoid it if you can. Eat less but don’t ask for credit if you’re already under debt. It’ll only drag you deeper into this vicious circle. So, avoid it at all costs.
- Set up an Emergency Fund
This is also going to work if you have some decent money to spare. See, unexpected care or house renovation expense can be daunting. However, if you have some backup in your emergency fund, you won’t feel the pain, right?
So, while you create your budget, include emergency funds as well. Ideally, your emergency fund should have at least six times the money you earn each month. But you can start small. Drop a few bucks whenever you like. And it’ll eventually grow. This way, you can use the money when something unexpected comes up.
- Find something to do at the side.
Let’s get it straight. Financial stress happens when either we spend too much, or we earn too little. If you think you do not earn good, it’s time to change. You can opt for higher education and apply for a well-paying job. Or you can use your skills and provide services to international & national clients.
Let’s say if you’re good at writing. Open an account on Upwork or Fiverr and start selling your services. Or you can open a business the part-time, and when you’re good enough, you can turn it into a full-time gig.
- Track Your Progress
This solution is indirectly related to your financial stress. Now, when you follow the above-given pointers, you need to check how far have you come. Even if you have slightly improved from what you were a few weeks ago, you should feel proud. Or perhaps you should call for a celebration.
Doing this will motivate you and will fill positive energy within your life. So, make sure you track your progress.
- Become Financially Literate
Go check out this book. It’s a famous read by Robert Kiyosaki. This book can help you become financially literate. So, go on read it and learn how to reduce liabilities and increase your assets.
Also you may like: Ways To Achieve Financial Independence In 2020
Also check below YouTube video about Good Financial Habits
Wrapping up!
Never allow financial stress to take up your mind. If you feel anxious or depressed, contact the professionals. Calm your nerves and implement the above-given solutions. You need to understand that finances are easy to manage. All you need is a push and a little bit of professional guidance.
