Are you constantly worried about your financial planning? Or stressed regarding your savings? Well, if you are feeling anxious or uncomfortable or losing sleep because of your finances, you are not alone!
- According to a survey by the American Psychological Association 2015, 64% of the stress is related to the money.
- According to a study conducted by Northwestern Mutual’s 2018, 44% of the Americans agree that money is the greatest source of their stress and 46% of Americans worry about outliving their savings.
Well, this financial stress is obvious because money touches almost every aspect of our lives. There can be many factors contributing to the financial stress. But the most common ones are kids, education, job, marriage, health, pregnancy, etc.
So if you are experiencing this stress, don’t worry! Here are a few tips that will help you in reducing the financial stress –
- Identify what is stressing you out
The first thing you should do is identify what is stressing you out. This way you will be able to focus on that particularly. So make a list of things that are weighing you down. There can be various things like poor financial planning, struggle to pay mortgage amount, too much expenses, etc. This will help you in identifying where the problem is and then you can solve that.
- Make a budget
You might be aware of the importance of proper budgeting. So, now it is the time to make one. While preparing the budget remember to keep a certain amount in the emergency fund. By adding this you can eliminate certain future unfortunate events, which in turn will help you in reducing the stress.
- Prioritise to pay your bills first
There may be instances when you may be tempted to pay your bill later. STOP THIS HABIT. Pay your bills first, be it student loan, medical bills, credit card bills, or whatsoever. Delaying the payment is the worst thing that you can do to your finances and credit score. The payment history is the number one factor of your credit score and the poor credit score is the number one factor of your financial stress. So, make sure that you pay your bills on time.
- Make cash purchases whenever possible
Before you purchase anything, ask yourself can you use cash here? And if the answer is yes, then try to do that. Avoid card payments as it will help you in avoiding the debt and staying in the budget. Also, limited use of your credit card will help you in increasing your credit score.
- Give yourself some time
Make sure that you give yourself enough time. Prioritise the activities that help you to stay healthy, makes you happy and keeps your mind calm. Taking care of yourself is very important and if you need professional help, do not hesitate to reach out to one.
So these are a few things that you can do in order to reduce the financial stress.
BFAG (Boston Financial Advisory Group) can help the budding entrepreneurs with their financial and accounting matters. So get in touch with us to find out how we can help.
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