There are always times when money seems tight and there will always be times when money seems flush. However, it’s how you deal with the stress in the former that will make all the difference to your long term finances. When in a financial crisis, you may look at short term loans to see you through, but once you’ve got yourself square, you need to think about how you can get yourself sorted for the long run. So, if you want to reduce your financial stress, keep reading and discover our guide on how you can do exactly that.
Create A Budget
One of the best tips for reducing your financial stress is to create a budget and stick to it. Budgets should be strict enough that they enable you to manage your money, but not too tough that they’re impossible to live by. Start by taking a look at your total amount of money that comes into your account, and then deduct all of your expenses and outgoings from it. This will leave you with a number to work with that shows you exactly how much money you have left to spend throughout the month. Once you have this number, you’ll be able to split it up into weeks or days, so that you know how much you can spend without going over your budget. Some people like to split their budget into a daily one, but others like to split it into weekly amounts. Whichever you prefer, make sure you that you can actually stick to it! Don’t make your budget too unrealistic, otherwise you’ll just end up going over it each month, rendering it completely pointless. So, make sure you create a budget that fits in with your lifestyle, and you’ll find it much easier to stick to and you’ll feel in control of your finances.
Don’t Worry About What You Can’t Control
While it can be easier said than done, don’t worry about what is beyond your control. Things like energy prices and gas prices aren’t something that you can change, so don’t beat yourself up about it. Instead, if one of your bills goes up because of external factors, then try not to let it get you down. Instead, reassess your budget and look at areas where you can make cuts to lessen the sting of the higher bills. Try not to dwell on things and start to think about what you can actually control. You might not be able to control the rising energy costs, but you can control how much energy you use. So, try to look at ways that you can make changes instead of focusing on what you can’t change.
Try To Start Saving
Saving money might not seem like it’s at the top of your priorities, but it definitely should be no matter what situation you’re in. Saving money doesn’t have to be hard either. Instead of putting away a lump sum at the beginning of each month, try to save little bits of money on a regular basis. A really easy way to do this is by rounding up your purchases and putting the extra pennies into your savings. There are lots of banking apps that can do this automatically for you as well, so you won’t have to manually do it every time you buy something. You can also save money by forgoing certain purchases either. Say you buy a coffee every day on the way to work, try only buying it 3 times a week and putting what you would have spent on the other days into your savings. This way you won’t feel as though you’re living on a tiny budget, and you’ll be able to save a lot more in a short space of time.
Lower Your Outgoings
When it comes to reducing your financial stress, one of the key ways to do so is to lower your outgoings. This might seem impossible, but if you were to collate all of your outgoings into one list, you’ll soon see ones that you can get rid of or lower a little bit. Things like streaming service subscriptions may seem like small expenses, but they can soon add up and make a rather large dent in your money. Try taking a look at them and seeing which ones you can cancel, and you’ll be surprised at how much money you can save. It’s also a good idea to try and lower your debt, as a lot of your stress probably comes from trying to deal with it. Try to see if you can increase your payments to get things paid off sooner. While this may incur higher payments at first, you’ll soon be benefitting from having less debt to pay each month. Having less money to pay each month will definitely help to reduce your financial stress!
Speak To Your Lenders
Speaking of reducing your debt, it’s a good idea to speak to your lenders if you’re struggling to make your payments. Instead of missing payments and incurring late fees, also speak to the lender first and let them know what’s going on. They’re much more likely to be lenient if you’re upfront with them. If you’re finding that you’re unable to make your payments on a consistent basis, then try speaking to the lenders and ask them if you can lower how much you pay. They’d much rather you pay less than nothing at all, so don’t give them a reason to distrust you and always keep them in the loop of your financial situation.
Financial stress is something that most people will experience at some point or another, so it’s important that you know how to deal with it. While you might not be able to solve it completely, there are ways that you can decrease it. Try living by a budget and saving little and often, and you’ll soon find that your stress is lowered. You may even think about lowering your outgoings or even paying off your debt early to really help increase your income. So, if you’re feeling the pinch, try to utilise these tips and you’ll hopefully see a big difference in your stress levels!