Financial stress, like all stress, has a way of worming itself into your life and thoughts. Whether a large debt, a big bill, or loss of a job is at the heart of your financial stress, the feelings of unease may be keeping you up at night and interfering with your peace. So, how do you handle financial stress in a healthy and productive way? Here are a few suggestions.
1. Characterize the Actual Problem
A good starting point is always to sit down and figure out what is the actual root source of your stress. Yes, you are under financial stress, but where, exactly, does this stress stem from? You are spending more than you earn? Are you in more debt than you can reasonably pay off? Maybe you're just not sure where your money is going, and that makes you feel uneasy.
Often, once you sit down and think through what your financial problems actually are, they seem less overwhelming.
2. Create a Plan
After you've identified the problem, work towards a solution. If, for example, your problem is that you are spending more than you make each month, then you need to make a budget and figure out where you can make some cuts. If your problem is that you have more debt than you can pay, then your plan may be to visit a bank and apply for a debt consolidation loan.
Knowing that you have a plan and are working towards a solution will greatly ease your financial stress, even though your financial position may not change overnight.
3. Find Ways To Increase Your Income
If you have more money coming in, your financial stress will generally lessen. There are many ways to create more income for yourself. You could:
Make sure you also have a plan for the extra money you earn. Depending on your particular financial situation, this might mean putting it towards debt, using it to pay bills, or saving it in an emergency fund.
4. Save an Emergency Fund
If you do not already have an emergency fund, it's high time to save one! Having an emergency fund to fall back on will reduce your financial stress and give you peace of mind. You won't ever again have to panic if your car breaks down or you have a surprise vet bill.
Most experts recommend saving three to six months' worth of expenses in your emergency fund. It may take you some time to build this fund, but even if you only save $100 a month, working towards this goal will give you something helpful to strive for.
5. Meet With a Financial Advisor
When you're feeling in over your head and overwhelmed financially, it can be really helpful to get an outside, expert perspective. A financial advisor can review your finances with you and help you set goals for improvement, going forward. They can help you create a budget, create a plan to pay off debt, figure out how to save an emergency fund, or work towards any other goals that will reduce your financial burden.
If your financial situation is stressing you out, don't just sit there—take action! Characterize the problem, make a plan, increase your income, and start saving. And don't be afraid to meet with a financial advisor if you need a little guidance from a pro.