Up to 90% of individuals say that money has an impact on their stress. Financial well-being is therefore a critical component of our overall well-being. Below are a few simple tips that may help to reduce financial stress and to stay organized.
Pause before you make a purchase
Before you make a purchase, mentally ‘convert’ any amount of money you are looking to spend into the number of hours you would have to work to earn that money back. This helps you get a feeling for whether the service or product warrants that number of hours of your time and energy. If it doesn’t, don’t make the purchase. This mindset will help you walk away from impulse purchases that you might later regret.
Invite friends over to cook together
Another tip that may help reduce stress during tough financial times is cooking more. Going out is great but not cost effective. Sign up to a few cooking websites and blogs and started trying out new recipes. Invite friends over to do a cookout together, so instead of going out to dinner on a Saturday, start cooking together at one of your homes each week. Trying out new recipes each week allowing you to still have a great time and socialize without spending a lot of money.
Keep a monthly budgeting spreadsheet
Keep a monthly budget and set this up as a spreadsheet. Be diligent with this spreadsheet and ensure that all expenses are logged so that you can keep tabs on your spending. This also allows you to save for upcoming trips, events and occasions that you have planned. By having a steady eye on your finances feel more in control and are able to pick up needless spending quickly.
Schedule a financial planning day
Book a financial planning day with yourself and your money. The act of doing this instantly makes you feel more in control and sets your mind to wondering instead of panic. There are some excellent resources online to help you check through all of your outgoing and incoming money and make a plan of quick wins and longer-term goals.
Check in with yourself
Reducing your financial stress may come down to your mindset towards money. When you start feeling anxious that you never have enough money define what is enough. Remind myself what enough means in the way of survival: Do you have a roof over my head? Do you have enough food? Do you have clothes? If the answer is yes to all those questions, then you are surviving. When you come back to that basic truth, you may feel calm and peaceful as you are surviving and doing the best you can for yourself.
Keep a money journal
Start by removing your money myths and blocks. Most ‘money advice’ is focused on things like cutting out that $5 latte, keeping great records and doing quarterly or monthly planning. But others suggest that the key to reducing financial stress may start with changing your thoughts and relationship with money. Try to create an abundance mindset by learning to actually believe that money is abundant and is everywhere, not scarce and hard to come by. Start by journaling such beliefs every day. By rewiring your thoughts and beliefs about money in your mind, you may open yourself up to more opportunities and stress less.
Make little spending swaps
Spending less is great, but just cutting without adding anything new may feel like you are depriving yourself. Try added one free or significantly cheaper item every time you cut something out. For example, cutting out weekday lattes but buying the best organic coffee you could find from a socially responsible company making it feel like a fantastic choice that just happens to be a cheaper option as well.