Avoiding stress is pretty much everyone’s goal, but that may seem impossible to achieve in today’s world because it just comes from so many parts of your life. From your house to the office, on the road or even while shopping for groceries, stress might suddenly appear when you least expect it.
For a lot of people, finances are a common source of stress. If you’re one of them, here are some ways you can reduce your financial stress.
Stay updated
When it comes to finances, surprises aren’t always a welcome thing. That’s why you can keep your financial stress down by making sure you always know how your finances are doing. This includes where your money is coming from, and where you're spending it.
This is made simpler if you make a habit of keeping tabs on your savings, spending and debt. You can make life a little less complicated by performing a periodic financial audit - although doing it more frequently (like after every pay cycle) can help you stay in-the-know.
Of course, staying updated doesn’t mean that surprises won’t happen. But if you’re aware of where your money is and where it’s going, there’ll be less chance that you’ll be blindsided by a forgotten expense that you can’t put off.
Check your thoughts and actions
Money can mean different things to different people, and this extends to how it ends up being saved, spent, and invested. Maintaining a proper “money mindset” will help you avoid being too carefree and too cautious with your funds by keeping their purpose foremost in your thoughts.
You can also reduce your financial stress by checking on your spending habits to see if there’s anything worth noting. For example, if you haven’t noticed that you’ve been splurging a lot on expensive non-essential items, you’ll know what you need to cut down on.
You may instead find that it’s your essential expenses which have gone up, due to a change in your life situation. If that’s the case, you’ll need to redo your monthly budget in order to factor in the extra costs, additional responsibilities, or new obligations.
Prepare for the future
Maintaining a proper emergency fund is essential for keeping your financial stress low, but you’ll need to check on it once in a while to make sure that everything’s in order. Take into account any changes in your situation (especially after a big life event such as marriage or a new child) and adjust the amount accordingly.
Of course, if you’re forced to take from it for an unexpected situation, you should prioritize replenishing your emergency fund just to make sure it’s still sufficient to cover 6 to 12x your average essential monthly expenses.
Making a fun new money goal is another good way to reduce your financial stress. For best results, don’t make it a big one, and make sure that it’s for something that you’re sure to enjoy. You can consider it a reward for all the effort you put into making sure your finances are in order.
Remember that if you’re doing the right thing with your finances, you probably won’t be stressed. Instead, you’ll feel blessed.
