How to manage financial stress
They say money can’t buy happiness. This is especially true when you consider the side effects of financial stress.
Here are a few tips to help you turn financial stress into financial well-being and infuse some order into your spending habits.
What is financial stress?
Financial stress is much more than worrying about your unpaid credit card balance. It often includes:
- Problems staying within your budget
- Rising debt
- Living paycheque to paycheque, with no flexibility
- Being unable to save, whether for short-term projects or for retirement
- Inability to take on unexpected expenses
- A decrease in income due to a disability
The impacts of financial stress
Almost all aspects of your life can be impacted by financial stress:
- Couple or family life
- Relationships with friends and colleagues
- Your work, including your production levels
- Sleep
- Overall health
- Appetite
Financial stress by the numbers
According to the National Payroll Institute (NPI), worrying over money is a significant cause for stress:
- 48% of Canadians confirm they suffer from insomnia caused by money woes.
- 44% admit they would have trouble managing their budget if their paycheque was deposited late.
Don’t let financial stress take a toll on your physical or mental health. If you feel it’s impacting your daily life, consult a healthcare professional and take action to improve your financial situation. Every little bit helps!
Is your work impacted?
Financial stress can follow you to the office. Lack of concentration, distractions, absenteeism and even an increase in work accidents…these are just a few examples of how financial stress can wreak havoc on your professional life.
An NPI survey revealed that employees in this country spend approximately 40 minutes a day at work thinking about their finances.
Time spent checking their credit card balance or talking to a bank employee means an 8% decrease in daily production.
Time is money is another expression we often hear. For a company of 200 employees, financial stress adds up to approximately $200,000 in lost productivity.
Plan your budget
It’s the most important step of this process. It allows you to see exactly where the money is coming from and where it’s going.
Take all the time you need to list all your expenses and make sure you don’t omit anything.
Separate worthwhile from unnecessary expenses
You can’t eliminate every expense! So focus on investments that will pay off in the long run, such as:
- Purchase of a property
- Savings
- Launching your business
- Education
Make changes in other areas instead to cut down on excessive spending. Access to credit and your spending habits could be contributing to your debts. Be disciplined and resist temptation.
Make changes
Have all your budget numbers at hand to assess where you should make cuts.
It’s easier to adjust your expenses than increase your income. Grab the bull by the horns and start reducing some budget item expenses.
Start by sharpening your negotiation skills to get better prices for things such as your cell phone package or your next car.
The easiest way? Cut “small” expenses that add up like eating in restaurants or your daily latte.
Seek professional help
If you can’t seem to right the ship even after trimming your expenses, it’s time to turn to the experts: financial security advisors.
Before putting together a personalized plan for you, they will examine all your finances:
- Budget
- Investments and savings
- Retirement planning
- Life insurance
- Estate planning etc.
In addition to getting a picture of your financial situation, they will propose steps you can take based on your reality and needs.
Now you know what to do to leave your financial woes behind and avoid daily stress. You’re on your way toward financial well-being!
Source: Beneva
