Money can be stressful. There is a lot of conflicting information out there about how to best spend, save, or invest your money. And many temptations along the way. There are guidelines around how much you should save each year or accumulate before retirement, but what’s not always mentioned is that these figures can vary depending on the individual. Many people believe that if they just had more money, all their financial anxiety would disappear. But that’s not necessarily true.
Money can be stressful, but it doesn’t have to be. Here are 4 tips to help you quit stressing about your money:
- Create extra sources of income: It can be difficult to stop stressing about money if you’re living paycheck to paycheck. To break the cycle, brainstorm ways to earn more income to help ease this anxiety. Consider skills you can leverage to create another source of income. You may have interests and abilities others would pay for such as designing, writing, caring for pets, or tutoring. Having multiple sources of income not only helps pay your expenses but it helps maintain security if one avenue closes.
- Cut your expenses: If you’ve been spending a lot recently due to circumstances or old habits, you’ve likely experienced debts going up alongside your anxiety. Consider changing payment plans to make debt more manageable. Focus on paying off higher interest loans first or even consolidating your debt to better manage your payments and to achieve a lower average interest cost. Consolidating your accounts can also help you feel more organized and enables you to more easily track your expenses to readjust your savings and spending where necessary. Finally, consider radically cutting large expenses and if you are in retirement you may want to think about downsizing or relocating to a less expensive area.
- Focus on the positive: It may sound like a cliché, but keeping a positive attitude and using positive language can reduce stress. Financial stress often comes by projecting a worst-case scenario into the future. Remember, you’re in the present and have the power to make a difference. Nothing is set in stone and just by actively trying to find a solution, you’re setting yourself up for a greater future than you’re giving yourself credit for.
- Ask a professional: If you find yourself overwhelmed, buried in confusion and stress about your financial situation, reach out to a financial advisor. A financial advisor can help you see options and find solutions to financial challenges you may be overlooking. Simply by having a plan, such as a budget or debt reduction strategy, can be a powerful way to feel more in control of your finances and reduce stress.
Knowing the strategies to take control of your finances can help lower your stress surrounding it and lead to a more peaceful experience surrounding money. As always, if you have any questions or concerns, we’re here to help in any way that we can.
Cattelan Private Wealth Counsel Team