5 Mins Reading Time
We are in the middle of a pandemic and the stock market has been refusing to play nice. Not to mention, unemployment is at a near all-time high. So, how do you keep your cool and weather the storm without tearing your hair out?
Well, I can’t stop you from agonizing but I can give you some tips on how to invest in your future to make the present less daunting. Read on for my top five tips on how to cope with your financial anxiety.
Create a Budget
I may sound like a broken record. But a budget is the core of financial stability. A budget will help you identify exactly how much you need to get by, how much you should be putting away for retirement. A budget will also give you a good idea of when you can afford to splurge versus when you can’t. A budget puts everything into perspective and allows you to stop worrying about your money and let is start working for you.
Keep in mind that adherence to a budget takes practice and you probably will not get it right on your first try. However, practice makes perfect!
Click here for some of my top tips on putting together a budget you will actually stick to! (link here)
Start an Emergency Fund
One of the easiest ways to eliminate financial stress is to plan for the unexpected. An emergency fund assures that you have something tucked away in the event you find yourself saddled with a costly automotive or home repair bill. Rather than panicking or having to take out a short-term loan, you can merely borrow from your emergency fund and work the repayment of the withdrawal into your budget until it has been replenished.
Not sure how to start an emergency fund? I’ve got you covered. (link here).
Make Paying Down Debt a Priority
There are few things that make me more anxious than unchecked credit card debt. And merely making the minimum payment can keep you chipping away at a relatively small balance for way longer than necessary. Fees and interest add up and can make it feel impossible to make progress, particularly if you continue using the cards to make purchases. Having a plan in place to stop using your cards and pay down credit card debt will give you a clear path to reducing your unsecured debt. And it will also provide you peace of mind, knowing that you are in control of your balances.
Stop Trying to Keep Up with Everyone Around You
One of the biggest reasons people waste money on things they cannot afford is for the sake of keeping up with the Joneses. It’s freeing to live within your means. And it allows you to delay gratification by allocating extra money to retirement savings or elimination of debt, rather than trying to keep up with the rat race. Thinking clearly and making wise choices in the short term will have long-term benefits.
Look for Ways to Bring in Additional Income
If you still feel stressed after you’ve made and stuck to a budget and started an emergency fund, it may be time to brainstorm ways to bring in extra income. There are numerous ways to make additional money, many of which don’t even require you to leave the house. The best part is that bringing in a little extra cash is that it gives you a little wiggle room and allows you to worry less about making ends meet. In turn, you can shift your focus to what is really important to you.
See here for my top tips on how to make extra cash (insert link).