Does the topic of money make you nervous? Do you wake up in the middle of the night thinking about money? Are you worried how to pay off your bills? Do you get a panic attack thinking how to get out of debt? If so, then you’re probably affected by financial stress.
Money often causes stress and anxiety. Almost 23% of millennials feel financial anxiety is the reason behind their mental and physical weakness. More than 50% of Americans suffer from financial stress and anxiety in the fear of losing jobs. Another 24% of millennials say that financial anxiety has a negative impact on their relationship with the spouse.
Why people have financial anxiety and stress
It’s tough to earn dollars. It’s not easy to improve your savings. It’s difficult to retain a job. So stress is bound to be there. The root cause of financial stress is the fear of failure - the fear of not reaching financial goals. For instance, a person in his mid-forties has little more than 10 years to pay off his home loan, personal loans, credit card debts, and save for retirement. So many things to do and such a little span of time. This causes financial stress.
Many millennials get financially stressed due to their uncertain future. The job market may seem unstable and the stock market is completely unpredictable. Higher education is quite expensive. The student loans have become an inevitable necessity and there is no guarantee that one would get a job with a fat paycheck; enough to maintain a decent lifestyle and pay off student loan debts.
Debt. This is the most important reason behind financial anxiety. Many people get into debt to maintain a lifestyle they can’t afford. They whip credit cards, take out payday loans, borrow personal loans, and so on to enjoy a good lifestyle. Stress doesn’t come when they are taking out loans or whipping credit cards. But it does come when the debt collectors start calling every day for payments.
How to reduce financial stress and anxiety
It’s tough to manage finances. So financial stress is quite understandable. But it’s foolishness to live with financial worries especially when there are several tricks you can take to reduce it.
1. Be informed:
Check your mails every day to know about your pending bill. Deal with them as soon as possible. A huge number of unpaid bills won’t reduce your financial anxiety. Pay your bills on time. You can even mark the due dates on the calendar. This will also help you understand how much you’re saving and spending.
2. Pay off your debts:
Payday loans, credit card debts and student loan debt - they can make your life stressful. Payday loans and credit card debts are expensive debts. The sooner you get rid of them, the better for your mental health.
You can pay off credit card debts and payday loans through a debt settlement program. You can call 800-530-OVLG to know about how OVLG can help you settle your high-interest debt at affordable rates. You pay a fixed rate of interest so your monthly payments don’t go up in any month.
As far as student loan debt is concerned, you can use various types of student loan debt relief options to pay back your creditors. There is student loan consolidation which can help you get rid of your good debt as per your affordability.
Create a budget and stick to it so that you can avoid the stress of not having sufficient funds to pay your bills. We live in a consumerist society where it is tough to curb the temptations of overspending. A stress-free life can give you mental peace, which is very important.
3. Make more money:
When you have a list of financial goals, you need more money to attain them. So think how you can bring more money in your home. Cut down your unnecessary expenses. Save money where you can. Do a part-time job to increase your monthly income. You can also start a new business if you want.
4. Save more money:
Make it a habit to save 10% to 20% of your monthly income even if you have an emergency fund. You can set up an automatic savings account so that you can save 10% percent of your income automatically. You can also have a talk with your employer about getting automatic deposits into your savings account. If your financial situation is not that good, you can start with a very small amount like $25. Increase the amount gradually.
5. Create a financial cushion:
Life is stressful when you don’t have an emergency fund. What will you do if your car needs new tires suddenly? What will you do if you need to buy a new fridge suddenly? Can you use a credit card to cover these expenses? But is this practical? You have to pay off the full balance plus interest later, which means you have to pay more.
Save up to 6 months’ expenses to cover your emergency expenses. Start saving $20 each week to meet your saving goal soon.
6. Live as your means:
Don’t spend more than what you make. Don’t depend too much on your credit cards. Stop making impulsive purchases. There is no bravery in exhausting all your cash and incurring credit card debt just to lead a lavish lifestyle. It leads to a stressful environment.
Don’t be too much stressed since this will have a negative impact on your family. Sit with a good financial advisor to overcome your fears and walk on the right financial path. Save more for your retirement and invest wisely. You just need a good plan to rectify your past financial mistakes and get a proper plan.