Monday, September 19, 2022

How To Deal With Financial Stress

Make A Plan Going Forward

How To Deal With Financial Stress

To cope with financial anxiety, the best solution is to make a plan going forward. Many times, financial stress comes about because you dont have enough money or you are overspending. By simply making a budget, you can see where all your money is going. Then you can allocate some of it towards paying off debt or building an emergency fund.

If you dont have one already, an emergency fund is one of the best tools for eliminating financial stress. Typically having 3-6 months worth of expenses set aside in a money market account is enough. Then, if you have an unplanned money emergency like a job loss or major car repair, you have money to help you get through it rather than going into debt..

Steffa Mantilla is a Certified Financial Education Instructor and founder of the personal finance website Money Tamer. She educates women on how to get out of personal debt and build wealth.

Claire HunsakerAsk Flossie

Set Realistic Financial Goals

Financial stress often stems from our beliefs about what is ahead of us. Perhaps you have a low income and worry about how that will affect your ability to do things in future. It is completely normal to feel this way. However, there are small steps you can take now to reduce this stress and regain a sense of control over your financial situation.

If you want to reduce your financial stress, it is important to be aware of what money is coming in and how you are spending it. You can gain this knowledge by making a personal budget.

Try to find any unnecessary spending or areas where you can save money without negatively affecting your wellbeing. Perhaps you can redirect this money into a savings account. Even if it is just a small amount of money each month, it will move you in the direction you want to go. A little goes a long way over time.

Read more about how to save money.

Young Not Dumb But Still Slightly Broke

Nobody likes stressing about money and struggling to get by on not very much money. Young people all over Australia are facing unemployment, underemployment and financial stress, which can make it really hard to afford the essentials housing, food, paying bills let alone the fun stuff. It can be really hard to know how to deal with financial stress.

Eleisha, a full-time uni student, says managing financial stress can have a major impact on your choices and lifestyle: I dont have much money for my weekly expenditures, and I have very low savings for future purchases such as a house and a car. Theres not a lot of security. Im a bit worried now, but Im more worried about how its going to affect me in the future.

Living this way can create a lot of stress and anxiety, and often means you need to make sacrifices. SpiderGirl18 commented on the ReachOutForums: So many young people like myself aren’t able to live the lifestyle they want…. Ive felt pressure to move out of due to work opportunities being so far from me. I think that study and work can already cause stressors in our life, and adding issues such as travel and finances increases this stress more.

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Learn More About Managing Your Finances

Financial stress is real, but there are many ways to manage it so you can live a happy, healthy life. We hope this article makes you feel more equipped to deal with financial stress. To read more about managing your finances, check out our other Fresh Insights articles.

If you want to learn about Cadence Banks personal finance solutions, contact us today.

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.

The First Thing To Do Is To Not Be So Hard On Yourself

Financial Stress: What it is and How to Deal with It ...

Much of our stress and anxiety about money stems from the fact that we tend to think we are the only ones struggling. Money touches every area of our lives and its a taboo conversation topic. We end up feeling our own stress while at the same time believing everyone else has it all figured out.

The first thing to do is to not be so hard on yourself and realize you are not alone.

Derek Hagen is the founder of Money Health Solutions®, a financial therapy and financial life planning firm. Money Health Solutions helps clients live intentionally and mindfully, using money as a tool to support their ideal life. He facilitates financial health by helping clients understand their own money psychology, lowering financial stress, and increasing confidence in financial decisions.

Scott NelsonMoneyNerd

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Financial Stress And How To Navigate Money Anxiety

Home » Resources » Managing Debt » Financial Stress and How to Navigate Money Anxiety

It is okay to feel not okay about money sometimes. While most Americans feel good about their money a portion of the time, most people often feel negative emotions about their financial situation, according to a 2018 Northwestern Mutual study. Take a moment to let that sink in: Having financial stress is normal to most people.

So, how do others deal with it? The first step to dealing with financial stress and navigating money anxiety is to take the time to understand what is causing you to feel this way and why it makes you feel like that.

Tackle One Issue At A Time

Your finances can certainly feel overwhelming if you have a few money problems currently. It can snowball and feel like you have no control or even know where to start.

However, even if you start to put a plan in place, you need to pace yourself no matter how eager you are to make changes.

While its awesome to be pumped on getting to work, if you try to take on all the issues at once, it can cause you to stress even more.

Instead, make a list of your current financial issues and work through each one in due time. Space out how you work on your finances, otherwise you risk getting more overwhelmed and wanting to give up.

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How To Overcome Financial Stress

If youre facing financial difficulty, its important to acknowledge whats going on and seek support. However, try to be kind to yourself as you move through this challenging time. It is possible that you blame yourself for your situation but remember, you didnt choose to experience financial stress. Instead of blaming yourself for your challenges or focusing on past events, try to shift your focus towards what you can do now.

Here are things you can do to deal with money challenges:

How To Deal With Holiday Financial Stress

How To Deal With Financial Stress

The holidays are often filled with two disparate things: the fragrant aroma of fresh baked cookies and evergreen trees, and financial stress. Add in a global pandemic, furloughs and high unemployment, and this years holiday season could be even more challenging. Wondering how to deal with financial stress while spending time with loved ones? Here are our top tips.

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Face Your Money Problems Head On

If youre experiencing stress from your debt, the first step towards finding a solution is to acknowledge your money problems head on. Its certainly easier to bury your head in the sand and pretend that everything is going swimmingly, but if you continue to ignore your escalating financial woes, youll only be setting yourself up for more stressful situations.

Be honest with yourself in terms of how much you owe and to whom. This honesty applies more than just to yourself it also applies to your partner, your family and those closest to you. If you are dishonest with your partner and with your family about your spending habits and your current financial situation, it could cause tension in your relationship, which will further add to your stress.

When youre ready, go through your financial paperwork and start putting together a list of all your creditors, and how much you owe each of them. You may be surprised by how much youll end up owing, but take a deep breath and know that youve just taken the first step towards clearing your debts and relieving stress.

Understanding The Impact Of Financial Stress

Recognizing how financial stress plays out in your body and mind is the first step in finding a way to decrease this anxiety, worry, or frustration. Considering where you are in your life at that moment is a great place to start.

Here are some examples of common life stages when financial stress reactions pop up:

Find vetted therapists who specialize in stress management

  • Hobbies, leisure, and social activities

Non-essentials

  • Daily expenses
  • Weekly expenses
  • Monthly expenses

Considering all your incoming resources and outgoing expenses can help you to set a budget, make priorities, and feel more equipped to tackle each source of stress, piece by piece.

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When Should You Get Medical Help

Most people who experience emotional distress will pick themselves up after a few days or weeks and then feel able to tackle challenges, such as finding a new job.

See a GP if you’re still feeling worried, anxious or low after a few weeks. If you think it will help, the GP can advise you about psychological therapy services in your area.

You can also refer yourself directly to a psychological therapies service near you.

Seek help immediately if you cannot cope, if life is becoming very difficult or if you feel it is not worth living.

Either see a GP or contact a helpline such as Samaritans for confidential, non-judgemental emotional support.

S To Get Rid Of Your Financial Stress Once And For All

How to cope with financial stress

Financial stress and anxiety affect millions of people. No matter how much, or how little, money you make, you have probably felt financial stress at some point in your life. It doesnt matter how well you think youve planned , things can happen that cause you stress or anxiety.

Chances are youve had to deal with one of these situations:

  • Your income dropped and now you cant pay your bills.
  • There was an unexpected expense that drained your savings.
  • The debts keep building up and you cant pay them down.
  • You have had a medical issue and insurance did not cover it.

If youve dealt with one or all of these scenarios, youre not alone. Thousands of Americans are in the same situation. They move from one stressful financial situation to another or juggle many of them at the same time.

The reasons for financial stress differ for all of us, but the way to overcome it is the same.

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Things That Cause Financial Stress

There are many causes of financial stress. Sometimes its likely to be short term such as when we lose a job or have unexpected but fleeting expenses. In these cases, a new job and some attentive budgeting can relieve the concern. Sometimes the stress is more chronic and rooted in deep structural inequities such as the growing number of individuals and families who struggle to make ends meet even while working.

No matter what causes it, the stress of not knowing whether we can meet financial obligations, for ourselves and sometimes for others, can really take a toll on our mental health. And while money troubles or financial stress affects everyone, it may be especially challenging for young people who have less experience than older populations with managing finances. Although, it should be noted that often older people dont have the physical, mental, or experiential capacity to work, while healthy young people typically have years of possible training and new skills acquisition ahead of them to help turn the tide.

Ways To Manage Financial Stress

Money is one of the biggest stressors in many Americans lives. A 2017 AICPA survey found that 56% of Americans said debt negatively affected their lives, and 39% said the debt made them feel anxious while 21% said it caused tension with a spouse or partner. And the Institute for Divorce Financial Analysts found money issues to be the third leading cause of divorce.

Now with more than 36 million Americans losing their jobs due to the COVID-19 pandemic, stress levels and anxiety are likely climbing. Watching debt levels rise while struggling to make monthly payments, can potentially lead to a feeling of hopelessness and have a serious impact on your quality of life.

The good news is, you dont need to be held hostage by financial stress, said Michael Eisenberg, CPA/PFS, and member of the AICPAs Consumer Financial Education Advocates. There are several steps you can take to better manage your finances and reduce financial stress and anxiety.

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Devote Time Regularly To Facing And Dealing With Your Money

Once you have committed to completing the above action solutions, its time to find the time to implement them. Again, the longer you put it off, the worse it will get, and the more anxious and overwhelmed you will get. So please dont let it go another day without taking some kind of action.

Its highly likely doing the next best thing for your finances will be a frog in your life.

The frog concept comes from Brian Tracys book, Eat that Frog. It is something that you need to do that you are completely dreading and keep putting off. Instead of continually procrastinating on it, just go for it! Get your money frog out of the way as soon as possible and as your first major task of the day! Set an alarm if you have to to remind yourself. Just do it, then everything else you do the remainder of the day will seem like a piece of cake And there you have it.

Write Down Your Guilty Pleasures And Determine How You Will Handle Them

How to deal with financial stress

Knowing what you spend your money on is one part of the process, knowing how to control yourself is the second part.

Do you enjoy going out for fancy dinners? Do you enjoy wine? Perhaps you like to go on vacation or even buy new cars frequently or dress in designer clothes.

Whatever your preference is, knowing that you like to spend money on specific items can help you either cut back or find cheaper ways to accommodate that habit. Understanding your spending habits is one way to deal with financial stress.

These types of habits are often the bane of your financial savings and investments. However, the first step is to identify these types of expenses where you realize you are behaving inefficiently from a financial standpoint.

Once you have identified the problem, you can rectify it by cutting back or sacrificing other expenses in your life to pay for these expensive habits.

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Financial Decisions Can Be Driven By Emotions

From my standpoint as a financial professional, one of the ways to ease financial stress or anxiety is to speak with a professional.

Often, money and finances and decisions around them can be driven by emotions, which in my opinion is not the best frame of mind for making financial decisions. What I believe is helpful is to speak with a professional who can separate out the emotional aspect of what is causing the stress or anxiety and break the situation down into a possible outcome or outcomes.

It is also important to note that the professional should be a fiduciary and required to act in your best interests. Those who are not acting in a fiduciary capacity may sometimes try to capitalize on emotions to sell a solution often disguised as a product.

Urban Adams is an Investment Advisor Representative with Dynamic Wealth Advisors. All investment advisory services are offered through Dynamic Wealth Advisors. He specializes in providing investment management solutions and financial planning services for his clients.

Derek HagenMoney Health Solutions

Be Wary Of Quick Fixes

There are no quick fixes when it comes to overcoming financial difficulties. If something sounds too good to be true, it probably is.

If you have decided to borrow money to help you with your situation, it is important to make sure the lender is legitimate and reliable. Some lenders try to attract people who have been refused bank or credit union loans and need money quickly. These are often referred to as loan sharks. Theyre usually unlicensed and charge high rates of interest. It is best to avoid these lenders. If you are unsure if the company that you are dealing with is reliable, check the Central Banks Register of Authorised Firms in Ireland.

You dont need to do things that make you feel uncomfortable or afraid in order to overcome financial stress. Reach out to one of the organisations at the end of this article for advice and support.

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Start To Invest Or Invest More Outside Of Your Retirement Accounts

Beyond 401 and Roth IRA, there are a number of other ways to invest your money, such as stocks, bonds, and mutual fundsâand you can get started pretty easily using a number of easy-to-use investment apps.

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Get Help From A Professional

9 Ways to Deal with Financial Stress

If things have come to a bankruptcy-like situation, then it will be the ideal time for you to consider seeking the help of a professional. Financial experts will help you manage your finances and advise you on how to pay off the debt and loans against your car title real quick. You can also seek help of family and friends and ask them for help.

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