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Facing financial stress is a reality for people across the globe, cutting across all walks of life. Whether it's due to job loss, mounting debt, or unexpected expenses, the weight of financial worries can feel overwhelming.
But you're not alone, and there is a path forward. This post will tackle the multifaceted impact of financial stress and offers a compassionate guide to overcome these turbulent waters, with practical steps to lessen the burden and reclaim your financial stability and peace of mind.
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Learning what financial stress is and it’s negative effects
Getting financially stressed out can be very hard on you. It leaves you feeling doomed and unsure of how to move forward in the midst of financial turmoil.
Every time you spend money, you have a feeling it's not coming back...and feelings about that lead to guilt, which then causes a gloomy attitude, and then everything just spirals down from there.
Financial stress is a heavy burden that can be hard to live with. It's not just one moment of panic or concern but rather it's an ongoing sense of dread and worry tied in with your finances, ranging from never-ending debt to lacking income or planning the future.
Cut back on unnecessary spending
One of the fastest ways to start reducing your financial stress is by cutting back on unnecessary spending. It's easy for people who live paycheck-to-paycheck to forget that this shouldn't be happening at all, which can lead them into long-term debt and negative net worth situations.
This is definitely something that should be done immediately if you are feeling the stress from your finances. The best thing you can do before getting too far in over your head financially is cut back on those things you don't need as much like cable TV or eating out a few times per week, so it won't take up most of what little money you're making every month!
Cut these 8 things from your budget for a significant savings
Eliminate expensive habits like going out to restaurants and bars
I know it sounds strange, but one of the best ways to save money is by going out less. The more you go out and spend on food or drinks at a restaurant or bar, the less spending money you'll have for other things like groceries!
I love hanging out with my friends as much as anyone else does - I'm always up for grabbing some dinner after work every now and then when we're feeling social. But if this has been taking up all your monthly income so that there's nothing left over for anything else, try cutting these expenses in order to give yourself a little bit of breathing room again!
Consider downsizing to a smaller home or apartment
Another great way to save a significant amount of money in a short time frame could be to downsize your house or apartment. Research the average rent in your neighborhood and compare it to what you're paying now.
If you decide that downsizing is for you, make sure not to do it too quickly, or else this can cause a lot of unnecessary stress on yourself! Make sure all the other bills are taken care of before moving into a place with less space.
Find an additional source of income
Finding an additional source of income is going to be vital for relieving some of that financial pressure. Whether it's getting a side hustle or doing something else, this is an important step to take early on.
If you don't have the time for another job outside your regular one, search for any opportunities that might be more flexible and less demanding. This way you can still enjoy spending quality time with your family or friends, without feeling guilty about not working hard enough.
Picking up a side gig is a great way to earn extra income during financial hardship. Consider leveraging your existing skills and interests to make additional cash. Popular side hustles that can work around your schedule include rideshare driving, pet sitting, selling handmade goods online, freelance writing, virtual assistance and tutoring.
Create an emergency fund
You need to have a financial safety net and the best way is to have some money on standby. This will make sure that you can take care of any emergency expenses without worrying about later being able to pay for them, which would lead to higher stress levels.
No one looks forward to the day where they need money for emergency expenses. However, if you are not saving anything and have a lot of savings then there may be some other contributing factors as well like your stress levels can also go up.
It is highly recommended that everyone always saves up some amount of their earnings on standby in case something unfortunate should happen tomorrow or next week.
If you find yourself making over $200k annually but still manage to spend all of it, this could very likely contribute towards why you're feeling stressed with your finances more than anyone else might expect otherwise from just looking at how much income you make alone each year without accounting for any additional variables such as debt owed.
Having cash reserves is vital to weathering financial emergencies without going into debt. Aim to save 3-6 months' worth of living expenses in a dedicated emergency savings account. Automate contributions so you pay yourself first each month. Even small amounts add up over time and prevent you from reaching for credit when surprise expenses occur.
Put together a list of things that make you happy, and do them often
One thing that is overrated is not spending at much time as you should doing things you enjoy in life.
If you're always focused on how much money is left to spend after buying groceries for the week, then it might be a good idea to take some time out of your day once in a while and do something that will make you feel calm and relaxed.
It's important to not only think about what makes us happy but also plan ahead with our finances so we can avoid feeling like financial stress has got the best of us when all we want is peace of mind by knowing we have our finances in order.
Get enough sleep and exercise
Getting enough sleep and exercise should be a given but you would be surprised how many people neglect these things because they are so focused on their work.
The World Health Organization recommends that adults get at least seven hours of sleep per night. Lack of sleep is an epidemic and has been associated with increased risk for diabetes and obesity, as well as increased mortality rates.
Research has even shown increased rates of death from traffic accidents among those who report sleeping six hours or less per night. This is certainly a huge problem for a lot of us, sleep deprivation can even be considered a human rights violation these days because it may prevent people from participating fully in social life.
On the upside, getting enough rest can lead to more productivity, better weight control, reduced stress, and better immunity-system function. If you're not getting enough sleep, it's time to start prioritizing your bedtime and making sure you are being mindful of the quality of your rest.
Don't Neglect Self Care
Financial problems quickly lead to emotional distress. Be intentional about regular self-care to manage your stress. Get plenty of sleep, eat nutritious meals, engage in physical activity, invest time in relationships and don't be afraid to ask for help. Taking care of your whole self promotes resilience.
Take Advantage of Public Assistance Programs
If you are unemployed, facing foreclosure, behind on utilities or struggling to afford food, there are public assistance programs available. Reach out to your state or county office to learn about unemployment benefits, housing assistance, food stamps, Medicaid and other social services you may qualify for. These programs exist to help in difficult times.
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