6 WAYS TO TACKLE FINANCIAL STRESS
1. Identify top sources of financial stress: If financial anxiety is weighing on you, start by identifying the specific issues keeping you up at night. Whether the problem is credit card debt or upcoming bill payments, pinpointing the source of your stress will help you determine your next move. Write down your biggest money challenges.
2. Create a monthly budget: A budget is a powerful tool for taking control of - and understanding - your finances. It can help you avoid spending more than you have as well as save for future goals. Once you have a full picture of where your money is going every month, you can look for opportunities to redirect some of it to the areas causing your financial stress.
3. Make the most of your income: When money is tight, you may think you don’t have enough to deal with your financial problems. However, it’s important to make the most of the income you do have. Know that small steps add up. You may not be able to cut any one expense by E500 a month, but you may be able to identify five that you can cut by E100 each.
4. Build an emergency fund: Having money set aside for an emergency - such as car repairs, job loss or illness can go a long way towards relieving financial anxiety. However, building an emergency fund can seem overwhelming, especially one with enough to cover three to six months of expenses. Don’t get hung up on the amount—what’s important is that you’re consistently setting money aside.
5. Be strategic about reducing debt: Credit card debt is a common source of financial stress. Not only is it expensive - it can also get in the way of your saving goals. The anxiety antidote: A plan to pay off the debt. If you have balances on multiple cards, consider using the snowball method (paying off your debts one-by-one, focusing on the smallest first) or the high-rate method (concentrating on the cards with the highest interest rates first).
6. Consider outside help: Finally, your friends and family may be able to offer support - just make sure to set clear boundaries and expectations to avoid damaging those relationships. Make adjustments as your income, spending and goals change. Seek help if you’re struggling to keep up with minimum payments. *Additional information sourced from https://bettermoneyhabits.bankofamerica.com