Taking Charge Of Your Financial Stress!
If you are trying to cope with stress and anxiety due to financial challenges, you are not alone. The coronavirus has caused financial worry for too many people. Worrying about money and bills can cause a big burden on your daily life.
Financial stress can also play a role in many other mental health problems that can be hard to cope with such as,
- Anxiety
- Depression
- Isolation
- Denial
- Hopelessness
According to the 2019 blog, “Financial stress is keeping us up at night – but it doesn’t have to!”, money is the number one cause of stress among Americans. Read more for other interesting facts about financial stress.
What is Financial Stress?
Financial stress is an emotional effect due to financial problems. According to a survey by Capital One CreditWise, 73% of Americans say that their finances are the biggest cause to their stress (Konstantino, 2021). Many people have felt stressed over their finances at some point in their lives.
Financial stress can occur for many reasons such as
- Job loss
- You are buying a house
- Paying bills on time
- Increase in bills such as rent
- Credit card debt and personal debt
- Trying to stay on a budget
- Unexpected expenses
All these factors can play a role in why you or someone you know may be dealing with high-stress levels. While financial stress may seem never-ending, there are ways to manage stress in your daily life
How to Manage
You might have heard the saying “money is not everything”. While that is true, it can certainly cause a lot of weight for one person to handle when struggling.
Dealing with the burden of bills and debt it is important to understand that it may be a long process before you can see the light.
Here are some tips on how you can take control of your finances and build better money management skills.
- Identify your challenges
- Create a budget
- Consider ways to reduce your bills
- Consult a financial professional
Identify your challenges
When managing your financial stress, it is important to understand why you are struggling financially. It helps to make a list of what you are struggling with to see where and what you can improve on. Doing this will help make you feel like you are taking control of your situation.
Create a budget
As we always mention, because it is important, it is now time to create a monthly budgeting plan. You can do this on a piece of paper, through a budgeting template or app, or with a financial professional.
Budgeting can be hard, which is why many people do not have one. Although it can be tough, it is essential to living a debt-free lifestyle. Budgeting will help you save money and help you understand your personal finances.
- Add up your net income (after taxes)
- Calculate your monthly expenses (this should include everything from needs to wants)
- Don’t forget to include your savings
- Create a budget you know you can stick to
For a step-by-step guide on how to budget check out Creating a Budget to Help Solve Your Finance Crisis.
Consider ways to reduce your bills
After you have identified your challenges and created a budget, you should now be able to implement your plan. One way to help you stick to your plan is by finding ways to reduce your bills. It may be time to find a cheaper phone plan or cancel some subscriptions.
There are so many ways that people can reduce their bills. Reducing your bills is a good way for you to be aware of your finances.
Consult a financial professional
The next step to taking control of your financial stress is by finding a financial professional to help with your situation. Doing all these steps alone can make you feel overwhelmed. There are many people out there who are ready to help you.
Make sure to do your research on the person or company you are planning to work with. It is important for you to keep control over your situation. Ask questions, learn about their company, understand their process and their values. Find a company that takes the time to make you a priority and understand your situation.
Here at Roundleaf, we take pride in creating a partnership with every one of our clients. We care about your financial health. While eliminating your debt is important, we strive “to help people achieve their most important financial goals through educated decision making.”
We provide the necessary resources to finish the journey and provide support to help you through financial hardships. We lay out options for you to achieve short and long term financial goals as well as educating you, so you can make the right financial decisions to achieve those goals.
Learn more about how Roundleaf can help support you on your journey to financial freedom!
