How to Handle Financial Stress

Have you been feeling overwhelmed and down-right stressed out about your finances recently? We’ve all been there (at least I know I have). Thankfully, there are plenty of tools and ideas out there to help you cope with financial stress.

After dealing with some significant financial problems myself, including being homeless, I found that there are a few sure-fire ways to make yourself feel better about your finances while working to better them as well.

Set a budget.

If you’re going to handle your financial stress you won’t do it by simply being overwhelmed by it. You’ll need to take action and start putting a plan in place. First, you’ll want to track all of your day-to-day spendings. After you’ve had a good look at all of your finances, you’ll have a good idea of where you can cut and what remains a necessity.

Then you’ll be ready to create a budget.  No one’s budget is the same, so be sure that your budget is tailored to your specific goals. Also be sure that you are creating a realistic budget. Many people are eager to start saving and get their finances on track that they don’t think everything through before making ambitious goals.

Emergency fund.

When you are setting up your budget, be sure you set aside money for savings. A majority of Americans don’t have the money set aside to cover a $1,000 emergency. Because that’s the case, many people wind up racking up credit card debt when emergencies come up. This will not help your financial stress. The additional monthly payments will only add to your stress. So, make saving money for emergencies a priority.

Get help.

Don’t be afraid to admit when you need help. What keeps many people stressed out about finances is not talking to others about their problems. In many cases, keeping the struggle you’re having to yourself will increase your anxiety about the issue. There are plenty of affordable financial advisors (and even free financial advisors) that can help you sort through your finances.

Make changes.

Nothing will happen to alleviate your financial stress unless you make a change. You can plan, budget, and track all day long but if you do not change your behavior, your financial situation will remain the same. If your finances have declined because you spend too much money going out to eat, but you don’t change that behavior, you will still be struggling at the end of the day.

Give yourself positive affirmation.

Last, but not least, give yourself positive affirmation. This is important when you are trying to reach financial goals and other goals in life. No one is perfect. You’ll have good and bad days with your finances. Be sure to remind yourself that nothing is permanent. You can always make more changes to better your situation.

If you keep these five things in mind, you’ll be able to keep your financial stress under control and you’ll be on the road to financial wellness in no time.

Have you been under financial stress? How did you handle it?