Financial stress is one of the worst kinds because there is not a magic money tree and the stress of not being able to pay bills and make repayments can literally ruin a person’s life. The key is to recognize the problems early so that you can find a way to resolve them before falling deeper into debt. On that note, the following are five strategies that you can use today to limit the stress you may be experiencing as a result of money worries.
Have an Emergency Fund
Should the worst happen and you are faced with a medical emergency or something similar, not having an emergency fund can equal some very difficult decisions. There are multiple ways of mitigating against this. One of the ways is selling a life insurance policy to pay for medical procedures, and you can review a guide that explains how much your policy is worth before you decide to sell. Other options include taking on a part-time job to make extra cash to add to the fund or you could even rent out a room in your home if that’s a possibility.
Budget
There is a reason why every single money-saving expert will talk about creating budgets when it comes to surfing the waves of overcoming issues surrounding money. Make a list of income, make a list of outgoings, compare the two and stop overspending. You can use apps, pay consultants and ask anyone to have their input on necessary expenditure but the fact is that getting it all down is usually the simplest and most effective way to go.
Seek Outside Assistance
Talking about money is always awkward but seeking help is so important. There are plenty of experts from governmental agencies and charitable organizations that work with specific communities to help those who are struggling to get back on their feet. Also, see if there are tax breaks or benefits you are owed by speaking to a citizens advice center because you don’t know what you might be missing out on.
Determine What You Can Change
Under the budget section we briefly discussed this but there are certain items that are essential and others that you buy just because they are there. Did you have to spend forty dollars on that pizza order? Could you have made it at home? Well, if you decided that the pizza order was a necessity could you cut it down by using a grocery store version instead and cooking it for yourself? There are always ways of adapting budgets and social media is filled with chefs trying to show you how to live on a tight budget with your groceries. Equally, if you are paying for a subscription service but no one is actually using it, that’s an easy place to save a few dollars each month.
Track Your Progress
This sounds like a cheap psychological ploy but you can make yourself feel better by keeping track of the victories you make with your budget plan. If you went down the app-use route in creating a budget, there is usually an option for you to get notifications giving you encouraging messages of celebration and congratulations. It’s cheap, but effective.
