Financial stress is something that can eat away at you if you ignore it for long enough. However, there are plenty of things you can do about it, sometimes cutting it by as much as 75% or perhaps even more.
But what, specifically, should you be focusing on? How can you reduce financial stress and get back the life you want?
Face The Challenges
The first thing you can do is face the challenges head on. Usually, when it comes to money, things don’t just solve themselves. They need you to take direct action to sort them out (whatever they happen to be).
Therefore, write down your challenges on a Google Sheet or in Notion and then begin working through them. See where the problems are and the general lay of the land.
Name Your Three Biggest Issues
Once that’s done, you’ll want to write out your three biggest issues. These should be the financial factors in your life that are affecting you the most.
Usually, these problems will be the rent or mortgage, food, car payments, or medical bills. You’ll want to figure out the expenses and outlays from these first before proceeding.
If the expenses weren’t your fault, perhaps because you were injured on the road, then you’ll want to work with a car wreck lawyer. The idea here is to get money to cover your costs and ensure that you’re on the right track financially, not out of pocket.
Create “Life Happens” Financial Buffer
Another common practice is to create a “life happens” financial buffer. These are handy for dealing with challenges as they arise so you don’t get caught out.
Most people start with $1,000 and build from there. However, you can keep going until you feel comfortable. Once you know you have these savings in place, it reduces the pressure and stress you feel significantly.
Negotiate
You can also try negotiating areas of your financial life that are causing you problems. For example, suppose you have some high interest debt on a credit card. You can sometimes approach lenders and banks and ask them to reduce the interest rate because that would make it more payable. Many will do this, especially if you’ve seen a reduction in income.
Switch To The 48-Hour Rule For Non-Essentials
If you’re a big spender, you might want to switch to the 48-hour rule for non-essentials. The idea here is to give you some breathing room before you go out and buy something you might later regret.
For example, if you feel like buying something on impulse, you can make a mental note and then decide whether you still want it a couple of days later.
Schedule A 15-Minute Money Review
Lastly, it’s a good idea to get into the habit of scheduling a 15-minute money audit every Sunday. This exercise helps you to get to know the state of your finances on a regular basis. Once you understand this, it prevents consistency from being a source of stress.
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