Money worries are one of the most common causes of stress. A recent report showed that 90% of US adults are concerned about their finances. It’s not easy to manage money when living costs are increasing and it’s hard to save money. In this guide, we’ll share some actionable steps you can take to reduce the risk of financial stress.
Take control of spending
The first step to take when trying to improve your financial situation is to take control of spending. Analyze your statements and transactions to see how much you’re spending each month and where your money goes. Write down a list of regular expenses and note down information about additional costs, for example, groceries, clothes and luxuries like days out or weekends away. Use a monthly budget to monitor your spending. Set limits for non-essentials and use your budget to plan. Set money aside for clearing debt and try to save every month if you can. Update your budget as you go and modify it every month to incorporate one-off costs.
Tackle debt head-on
If you are in debt, it’s important to take stock of the situation. Are you paying back a loan, for example, a mortgage? If you’re up to date with payments and you can cover repayments and other household costs, there’s no need to worry. If you’re struggling to make ends meet, and you’re borrowing more money or using credit cards, it’s wise to take action. Tackle debt head-on before the situation gets worse. If you’re taking out high-interest loans or buying on credit, your debts could spiral rapidly. Seek advice. No matter how bad the situation is, there are solutions. Speak to an emergency bankruptcy attorney or call a debt charity. Financial advisers and attorneys can provide tailored advice to help you get out of trouble and move forward. There’s no shame in reaching out and asking for advice.
If you are up to date with mortgage or rent payments but are finding it harder to cover bills, speak to your lender and pay off high-interest debts first. This will reduce the total amount you owe.
Look for ways to lower expenses
Lowering expenses is one of the most effective ways to save money and get rid of debt faster. Use your budget to pick out areas where you could make savings. Lower spending on non-essentials. Downgrade your TV package, shop around for cheaper insurance deals and consider buying vintage or second-hand furniture or clothing instead of brand-new items. Compare prices online before you buy. This will help you save on everything from health insurance, clothes and toys to electrical appliances and phone and broadband services. Swap expensive outings like going to the movies or dining out for cheaper activities like home screenings and dinner parties.
Money worries are a common cause of stress. It’s not always easy to manage your money, especially if you’re in debt or you’re finding it increasingly tough to get from one payday to the next. To reduce the risk of financial stress, take these tips on board. Take control of your spending and look for ways to reduce outgoings. Tackle debt head-on. Seek advice and get help if you’re struggling to pay bills or keep up with mortgage or loan repayments.
Leave a Reply