How To Overcome Financial Stress

Identify The Cause Of Your Financial Problems

Already knowing the behavior of our money, it is time to put order and, for this, we must identify each of our income and expenses. With such information, what we are going to do is organize it in such a way that we can have control over our finances.

At this point, it is worth using tools such as:

• Templates, spreadsheets
• Accounting software
• Cloud tools

The important thing is that our financial information is organized and available to keep it under control. Use the system, tool or method that is most simple and practical, you can even do it with a notebook and a pencil.

How Meditation Can Help

There are many benefits of meditation but here we are going to focus on meditation as a way of building resilience. Life can be seen a series of joys and sorrows. Whether we have financial worries or not, there will be many times when we struggle with change and difficulty. Resilience is the ability to get back up after adversity. Resilient people are able to meet challenges as opportunities for self-reflection, learning and growth.

Hans Seyle, the grandfather of stress research, famously said,

It is not the stress that kills us. It is our reaction to it.

Lets look again at the scenario of lying awake at night and worrying about how our finances could turn out. Or the feelings of shame and guilt that torture us when we are struggling with money. All these extra feelings become a series of endless stories in our minds. These stories feed on each other and sprout new shoots making an endless confusion of worry.

If you are interested in meditation and would like to learn more, you might like to download this checklist to help you get started.

Financial Stress Adds To Relationship Baggage

Every relationship comes with some form of baggage. Your unresolved issues, your individual past experiences, differences in the way you approach life and situations basically, anything that adds unpleasantness to your equation can be qualified as baggage.

For couples reeling under financial stress, the monetary woes add a sizeable load to this baggage, which slowly begins to take its toll on the relationship.

Read Also: What Are Good Ways To Deal With Stress

Make A Plan Going Forward

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

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

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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Techniques To Overcome Financial Stress

Money is the second leading cause of stress amongst adults.1 If you find yourself worried about your financial wellbeing, you’re not alone – and there are things you can do to make it better. Financial stress can stop even the most productive people in their tracks, causing sleepless nights, avoidance of debt and denial. While it’s best to talk to your financial professional about what’s on your mind, here are a few tips to start managing your stress on your own.

Strategies To Deal With Financial Stress

Financial stress can stem from being in debt, not earning enough money, the expense of raising kids, or even being married to someone who isn’t good with money.

If you can reduce your financial worry, you will be able to focus on other important areas of your life and relax, knowing you have a plan to handle your financial situation. Here are a few things you can do now to relieve your financial stress and make it easier to function each day.

Also Check: How To Know If You Have Stress Or Anxiety

Financial Secrets Erode Trust

You made a bad investment and then took a chunk off your joint savings to cover your tracks. Or you bought something that you didnt need or was way out of your budget and now your credit card is maxed out. You try to pay it off secretly.

These things do come to light eventually. When that happens, the secrecy around financial problems in a relationship can lead to erosion of trust. You hiding things from your partner becomes a more damaging act than the poor financial decisions you have made.

If these lies and secrets become a pattern, they may interfere with your partners ability to trust you and vice-versa. Lack of trust is a potential red flag for any relationship.

Overcome Your Financial Stress

Are you tired of handling your financial stress alone? Stop the negative mindset and make a real change. This isnt something that you should live with forever.

Talk with our debt advisers to get help with your debt. If youre experiencing financial stress, then a debt agreement, informal payment arrangement or debt consolidation may be a possible option for you.

After youve repaid your debts youll gain financial confidence and financial liberation. With your new ability to manage your money, youll enjoy a better quality of life and be able to continue saving for future needs including for your retirement!

Were here to help! Call us on 1300 368 322 or book a free phone consultation to talk with our friendly team and we can discuss debt management options specially focused on your personal situation.

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Tip #: Establish A College Savings Plan

If you have a young one at home, paying for college is likely looming over your head. To ease this large financial burden, take the time now to establish or check up on your 529 plan. This tax-advantaged savings plan is designed to encourage saving for future education costs . You and other family members can contribute to the account, which will gain interest over time as you set aside funds to pay for a child or grandchilds education.

Getting your finances in order is no easy feat. Identifying your main stressors and establishing a plan to address them can make a big difference in how you and your family feel about your finances. If youre feeling lost, confused or overwhelmed, dont forget to reach out to a trusted financial professional who can help make sense of your current financial situation.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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Stay In Touch And Open Up

To reduce anxiety, its important to stay in touch with your loved ones. Whether its a zoom call with your mom, a quick catch-up with your bestie, or a one-sided conversation with your dog, its important to stay connected. Financial stress can encourage you to withdraw from social situations. This means youre left to ruminante alone with your anxious thoughts which exacerbates the problem.

Though it may seem daunting, try to talk a little about the problems you’re facing and how youre feeling. Your conversation partner isnt going to give you all the solutions youre looking for, and nor should they. But, if they listen to what youre saying and are understanding, it can be incredibly relieving. Were social creatures, were not meant to go through lifes hardships on our own. Putting a brave face on things will only prolong your suffering. Hearing a few understanding words can make a world of difference.

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Determine What You Can Change

Speaking of income, part of your financial issues may be due to a low income. If you are currently not making enough to cover your monthly bills, then you’ll need to decide what you can do to change this. One option would be to find extra sources of income. This could mean selling some of your stuff on eBay or Craigslist or getting a side gig.

Devise a plan that can help you change your financial situation. Just make sure that it’s realistic. The same goes for your financial goals. The plan must be something you can follow through with until you are able to achieve your goals. If you are overly ambitious, you might find yourself abandoning your plan in just a few weeks or months.

Practicing Exercise Or Yoga

This is one of the strategies to overcome stress. Exercise releases good neurotransmitters called endorphins. It helps to reduce feelings of depression, stress, and pain. Yoga is a great way to continue your workout without putting added pressure on muscles that youve overworked at the gym. It can be a refreshing break from traditional workouts. It still provides many of the same benefits that come from physical activity. In addition, it can help you manage stress and relax when you need it most.

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What Does Financial Anxiety Look Like

To try to understand what youâre feeling, it might help to think about where you are on this financial well-being scale from the Consumer Financial Protection Bureau .

According to the CFPB, your financial well-being could range from severe stress to high satisfaction. So if youâre not where you want to be, you may feel that

• You canât effectively manage your finances. If youâve been recently unemployed or have gotten too far into debt, you might not be able to pay your bills on time or afford essentials.
• Youâre not prepared for emergencies. If youâve been living from paycheck to paycheck, you might not have been able to save. This means you could struggle if faced with an unexpected expense or a financial emergency.
• You lack confidence about the future. If youâre not budgeting or saving, you might not feel ready for retirement or other goals like starting a business or having kids.
• You canât enjoy living in the moment. If youâre using all your income to pay back loans or other debts, you might not have the resources you need to treat yourself. For example, you might miss out on taking a vacation or going back to school.

Reach Out For Support

Try reaching out for support from your family and friends to help reduce stress. You might try attending a support group for people who are struggling with financial stress, too. Remember, you’re not alone. You can develop a system of trusted friends and family to help you stay optimistic about your finances.

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Find A Pro Bono Financial Planner

If you feel overwhelmed by money and don’t know where to begin, there are organizations that offer pro bono financial planning for those in need.

In addition, the National Foundation for Credit Counseling has a number of resources to help people navigate money and housing during the pandemic, and the Foundation for Financial Planning has a Covid-19 resource center that includes free nonprofit financial experts to contact for advice.

Chip Away At The Problem

Example Problem: Lets say someone hasnt balanced their bank account for months, theyre overdrawn on their checking account, have a stack of bills piling up, and they started getting calls from a collection agency. This person is feeling overwhelmed, like theyre drowning, and dont know where to even begin to tackle this huge hole theyve dug themselves into.

1. Chunking helps reduce the overwhelm by breaking down seemingly huge tasks down to smaller, manageable chunks. For the example situation above, the problem can be broken down into at least parts: balancing bank account, prioritizing the stack of bills, and responding to the bill collectors. Those three issues can be further broken down even further into chunks, such as with balancing the account can be chunked into balancing one weeks worth of transactions. Then once that one weeks transactions are balanced, theyd move onto the next weeks, and so on.

Sara Weand is a mental health expert who specializes in anxiety treatment.

Lindsay Bryan-PodvinMind Money Balance

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How To Deal With Financial Stress5 Strategies

Now that weve covered the symptoms, it’s time to look at ways of coping with financial stress. The good news? With a clear plan of how to improve your financial and mental wellbeing, you can learn to cope and thrive. Heres a step-by-step guide on what you need to do to reduce your financial stress.

Talk Out Your Feelings

Many times, people want to avoid talking about problems. This is because they dont think anyone will understand or because they dont feel like they have anyone to talk to. But there is always someone who will listen and try to understand what youre going through. The important thing is just finding that person or people, whether its family members, friends, your pastor, a rabbi, a doctor, etc.

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Perform An Honest Assessment Of Your Finances

Sometimes our tendency, when we feel stress or anxiety about something, is to avoid whats causing it. In most cases, this will only make things worse. When it comes to finances, people often feel overwhelmed, or feel a lack of control. The first step in overcoming the anxiety this causes is to face things head-on.

Block off some time to perform an honest assessment of your finances. If debt is the culprit, add up everything you owe, and start making a plan to pay it down. If youre worried that you havent been saving enough for retirement, talk to an advisor at the company that manages your 401K . Educate yourself about personal finance in order to make sure youre making choices that will bolster your financial health. However you choose to approach your financial stress, the goal is to gain a greater sense of control over your situation.

Do Your Best To Stay Positive

Positive self-talk is one way to cope with stress, the Mayo Clinic reports. When it comes to money management and stress, its easy to let negative thoughts creep into your mind. Do your best to stay positive, and try reframing negative thoughts when they come.

Here are some examples of how you might reframe a negative thought into a positive one when dealing with financial stress:

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Dont Compare Yourself To Others

1. Truly understand your financial situation: A lot of stress and anxiety is created from uncertainty. A lack of clarity on the impact of our financial decisions will increase the level of uncertainty we feel. Therefore, to avoid unnecessary stress, its important to have a good grasp of our financial situation. I recommend creating a budget that outlines the dollars that come in every month and the costs that must be paid. This provides a clear picture of the funds available to spend and reduces the anxiety of not knowing what we can afford.

2. Be realistic: Many of us habitually spend beyond our means with the hope that better financial days will come. But that just increases the stress today. We need to be realistic about our current financial situation and when that may change. If it isnt clear when our financial situation will improve, we need to live within our current means to avoid creating unnecessary stress.

3. Dont compare yourself to others: Often we create more financial stress for ourselves by looking at what others are spending and thinking that we should be able to do the same. However, everyone has their own unique financial situation and spending habits. Someone else may be in a better financial situation than us so is able to spend to a greater degree. Or they may be digging themselves a financial hole that we dont want to aspire to. We need to focus on our own financial situation and accept that it will be different than other peoples and thats ok.