Money is commonly the center of stress for many people and families. In fact, 73% of Americans rank finances as the number one stress in life. Younger generations are even more stressed about money. Unfortunately, this is usually because they don’t have good financial practices in place. They may overspend, carry debt, lack savings, or simply struggle to communicate about money properly. But what is the biggest thing people stress about when it comes to finance?
If you run in the debt-free circles on the internet, you may think most people are stressing about the amount of debt they carry. While that is one stressor when it comes to finances, it isn’t the biggest thing people stress about (surprisingly). The biggest money stressor people deal with centers around major life changes, such as buying a home, having a baby, or other big changes.
Around 62% of Americans say the majority of their financial stress comes from attempting to buy a home. That makes sense. Moving is a stressful thing to do. Sixty-one percent of Americans have stress centered around the purchase of a car, another big buying decision.
As you know, I’m prepping for a new arrival in our home. While it has taken a lot of preparation, we haven’t had to stress about our finances too much because we got ahead. We were able to trim things back and focus on preparing for our baby. There are some things you can do to help you minimize your financial stress though. For instance, we placed a focus on saving and material preparation.
How to Cope
Thankfully, there are plenty of ways to cope with financial stress, no matter what you are dealing with. Here are a few quick things you can do to reduce your money stressors.
- Communicate. Communication is key when it comes to relieving financial stress. You need to communicate with your household family members, communicate with loan companies and businesses, and with your partners.
- Set up a budget. If you don’t have one set up, putting together a budget will help you relieve some of your financial stress as well. Having a concrete plan for where your money is going will settle some of your anxiety.
- Look at all your options. If you are struggling to make all of your payments, research what your options are. Some creditors will establish repayment plans to help you. Many utility companies will do the same. In some cases, consolidating your debt payments with a loan might be a good option. Consider what moves you might make to help relieve some stress.
- Don’t stay quiet about problems. The worst thing you can do is keep your financial stress to yourself. While people can be awkward when it comes to talking about money, it is important to be open about it. Just talking about your problems can help you feel better.
- Save as much as you can. Having money stashed away for emergencies will make you feel more at ease when it comes to your finances, period.
Readers, what are some of your major money stressors? How do you cope?