They say money cannot buy happiness. While that might be true, money can help reduce financial stress. But what about those times when you need to reduce financial stress but don’t have a lot of extra money? Here are seven tips that might help.
- Talk about your financial stress. Don’t keep things to yourself and remember you’re not alone. There are millions of other families around the world feeling the same as you. By discussing your finances and stresses with family and friends, you may find some answers that help.
- Save for emergencies. Everyday moments and unexpected bills can cause a lot of stress. We all know our cars will eventually require a trip to the mechanic, so instead of using a credit card to pay for it, start now and save as much as you can every month into an emergency savings account. Then, the money will be there when you need it, helping make a stressful situation a lot less overwhelming.
- Prioritize spending. Review your budget carefully and look at all of your bills. Are there any debts that, with some attention and dedication, could get paid off in a year or less? If so, do it. Then, apply what you were paying on that bill to another loan or debt.
- Cut expenses. Want to make a big impact on your budget? For a full month, try to focus on only buying necessities. That may include temporarily pausing streaming services you don’t really watch or reducing how often you go out to eat. While this may give your emergency savings a boost, it may also help reveal other budget trimming opportunities.
- Discuss purchases with another person. This can include your spouse, kids, siblings, etc. Before you buy anything beyond the basics or bills, ask them and yourself if you really need it.
- Do something positive. Setting money aside into an emergency savings account, paying off debt, reducing your budget, or simply checking online banking every day to ensure you’re not spending too much, are all positive steps toward reducing financial stress.
- Look at the bigger picture. A recent Pew Research Center report found a direct link between mental health and financial wellness. While it may be difficult to change your financial outlook overnight, the research does hint that focusing on the good things in your life (health, family, friends) rather than the negative can help reduce financial stress.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.