When we used the term financial stress in the title, we were not just referring to having financial issues but also the type of stress that can diminish your health. Many financial problems can be resolved by seeking help from an experienced career counsellor or financial planner to help you to manage your finances. An additional benefit of what they do is to also reduce the stress and anxiety you may be experiencing as a result of the aforementioned money worries.
Does it follow that the only way to reduce stress caused by your finances is to use financial planners? Well, the answer is no, but with caveats. First, from a purely medical perspective, if you are suffering from stress and anxiety and these are so severe to cause you additional health issues, then you must seek advice from your doctor. Financial planning may eliminate one of the contributors to your stress, but you may have others that contribute also.
The other caveat is that financial planners can do a lot to help you manage your finances, but before and after you have consulted with them, there are actions that you can take to help your finances and thus reduce the worry and anxiety you have, which are associated with them. Below we have highlighted five tips that should give you a positive start in reducing your financial stress.
Formulate A Rigorous Budget: One of the most straightforward and effective ways of bringing your finances under control is to establish a budget. Going week to week and month to month with little idea of what money is coming in and going out leaves you completely in the dark, and when it comes to finances, the dark can be a very scary and angst-ridden place. So, list your incomes and your outgoings and adjust where possible to balance them.
Create An Emergency Fund: One of the scenarios that generate stress and, in extreme cases, outright panic is when people are thinking about their finances and realise that if an emergency or expected event happened they have no means of being to resolve it due to a lack of funds. Having the safety net of an emergency fund, even if that means leaving your credit card one or two thousand dollars below your credit limit, lifts a huge and worrisome concern from your mind.
Automate As Much As You Can: One of the curious matters that get brought up when financial planners are discussing a client’s financial situation is that it is not the lack of funds that is causing the client stress but the management of their funds. In particular, trying to remember what and who to pay each month causes them stress. If paying your financial outlays causes you anxiety, seek ways of automating everything so the stress of you physically paying them is removed.
Plan For Your Future: The old mantra of “Fail To Plan, Plan To Fail” is heard in many scenarios, and we are sure your financial planners will most certainly advise you of it. Planning for your future, and that means both your short and longer-term future, can bring a huge sense of contentment. Knowing you have your finances in order concerning savings, investments and, crucially, your retirement means stressing about your future finances should be a thing of the past.
Get Help From The Professionals: No advice about reducing the stress levels you suffer from as a result of financial concerns would be complete without advising you to seek professional help. That applies to both financial professionals and medical ones, especially if your stress is extremely debilitating. As for finances, a financial planner can assist you, with savings, debt management, and retirement planning, meaning your financial worries should diminish.