Managing financial stress is the first step to saving more money, achieving goals, and maintaining optimal physical and mental health.
Financial stress occurs when there is a debt due to having expenses greater than what you perceive and, also, due to poor financial management. Like any other type of stress, it produces symptoms such as anxiety and trouble falling asleep. In fact, it is much more common than you think.
Managing financial stress also leads to better organization of finances. The first sign that you are going through this is that you spend almost your entire salary paying debts to third parties or on credit cards. Be careful because this type of stress can lead to physical and mental problems.
However, don’t worry. Here are some tips to better identify and manage financial stress and so that you have the peace of mind that comes with a good administration of your financial income.
Keep track of all your income and expenses
You should definitely start by taking control of the situation. This point involves keeping track of both your income and your expenses. Some are fixed and important, like rent and utilities; By taking note of all this, you can determine what unnecessary expenses you are making so far and your savings margin.
Be realistic and consistent with your income and expenses
Spending more than you earn is a habit that can cause your financial, physical, and mental health problems. Therefore, you should start by being realistic and spending only what you can.
If you want to start managing financial stress, you must also be clear about your financial limitations. To do this, you can make a list of your income, your expenses, and your debts. You shouldn’t feel bad about it, as this step is critical to your mental health and financial well-being.
Allocate a percentage of your money to savings
Yes, saving is very important to keep financial stress at bay. To do this, it is necessary to identify those superfluous or unnecessary expenses you are making so far.
Instead of spending that money, you can save it where you know you are not going to touch it and, thus, it will be a kind of economic fund that you will have available in case of any emergency.
Make a financial plan and goals
Do you want to travel or make an investment? So the best option for managing financial stress is to make your own plan with those goals in mind. By determining what budget you need to meet your goal, you can set aside a percentage of your income to collect money and achieve it in the established time.
ULab, one of Spain’s best coworking centers, indicates that the main benefit obtained from a financial plan is knowing your income and expenses; This will be the key factor to achieve your financial goals.
Avoid superfluous expenses
Superfluous expenses are one of the main causes that are not allowing you to handle financial stress. These are all those that do not add anything useful to your life but are only about whims.
It is understandable that, on some occasions, you make emergency expenses that were not in the plan; however, to be calmer, you must reduce the other unnecessary expenses of the month to assume the unforeseen with greater calm.
Believe it or not, being grateful is a pretty effective habit for managing financial stress. In addition to everything you have read, it is also valid to make it a habit to thank for everything you receive in financial matters.
You can do it at the end of the day, and you will see how everything around you conspires so that things go well, and you feel much better about your finances.
See a professional if you consider it necessary
If you feel like you can’t handle financial stress on your own and the situation is getting out of hand, you may need to turn to a professional.
Brad Klontz, the co-founder of the Institute for Financial Psychology in Boulder, indicates that unmanaged chronic stress can cause headaches, digestive problems, inflammation, and other conditions. If you have already reached this point, it is better to go to a professional!
As you can see, financial stress can make you feel like it’s a dead-end, but it’s not. An expert, such as a psychologist, can help you control this situation to not end in serious physical and mental health problems, such as those mentioned in a study from 2016.
Avoid financial stress by taking care of your expenses
Managing financial stress correctly is crucial to your overall health. Not sleeping well at night because you think about debt is, without a doubt, something that could affect you over the years. If you wish, you can also help yourself with yoga or any exercise you like; With this, you will drain energy and feel better.