13 Tips On How To Beat Financial Stress

The top thirteen tips I've recommended to my clients, and that I've practiced throughout my life are:

1. Create a Budget

   1. In order to not feel stressed about our finances, we need to know what our finances look like. By creating a budget and recognizing what our monthly costs are it gives us a starting point. Start with mandatory bills- house, food, utilities. Then look at extras (they may not seem like extras all the time) transportation, gas, phone, tv, wifi, etc. Then budget in SAVINGS. Which we go into more detail on tip 3. And lastly, IF you have any money left over, you can budget in fun spending money.

2. Identify your spending habits

   1. Are you an individual who feels comfortable spending money as long as you have it? Or have that desire to spend your entire paycheck? Are you the kind of person who is extremely frugal and doesn't ever want to spend money? Are you someone who maxes out credit cards thinking that it is endless money to borrow?

   2. If you are maxing out credit cards and/or spending every penny you earn you will feel this financial stress for most of your life. Because you will always live with a paycheck to paycheck mentality always paying more interest or never having extra savings. Which leads us to my third tip:

3. Grow a savings

   1. This is not easy most of the time. Especially if you're experiencing financial stress. However, if you create a plan that will help you grow a savings, this will help you eliminate future financial stress. It is recommended to have a 3-6 months savings. One of the easiest ways to do this is part of tip 4:

4. Identify how much money you consistently make (take home) each month

   1. In order to have a healthy financial standing, it's important to know your income and what that looks like. How much do you get to take home and when? That way you can identify when you're paying your bills and with what money.

5. Track your progress

   1. As you go through these first 4 steps, track how you're doing. This will help you identify what changes need to be made in order to more effectively manage your finances. If you notice that you are consistently overspending in one area, then it is a sign of needing to reassess your spending habits- do you NEED to be spending that money on that thing? If so, do you need to raise your budget for that category? OR can you cut costs in that area, to stay within your budget.

6. Live within your means

   1. There is a very popular idea of wanting to have everything everyone else has. And with credit cards and loans it makes it feel very attainable. However, interest IS NOT YOUR FRIEND. Do not live outside your means, if you can't afford it, don't get a loan or put it on a credit card.

7. Use Credit cards as a debit card

   1. Credit card seems appealing since it's access to money that we don't have yet. However, interest adds up QUICKLY. And often times you will end up spending 2 times what the original cost was in interest. Instead of using it for money we don't have yet, use it as a debit card. If you buy something on it, pay it off instantly. So you don't have to pay interest. Instead, find credit cards that give you cash back or travel benefits. And use them as a way to EARN money instead of loose more money and get in further debt!

8. Identify any emotional connections with money

   1. Sometimes we have a negative relationship with money because that's how we were raised. Or we see how money seems to equal power in society and try to expect that. Other times we have this idea that money will solve all our problems. Identifying the root thoughts of your money thinking and habits will help you address it and work through it.

9. Have a financial support system

   1. It is helpful to have family, friends, mentors, and advisors who have a healthy relationship with their finances. Spend time with those people, surround yourself with those individuals, and don't be afraid to talk to them about finances. Opening up that communication will be so helpful in learning how they've grown to have that healthy relationship with finances, and give you ideas and support for your relationship with your finances.

10. Have an emotional support system

    1. Finances are stressful, especially if you're struggling with finances. It is so important to have people you can talk to about these stressors and process through it. It's important to have family or friends to talk to about the stressors. As well as a mental health professional to process through the stressors.

11. Eat healthy food

    1. Eating healthy leads for a better feeling overall in your health and in your spending. If you are buying groceries to make meals at home, you will be saving significantly more money than spending it on eating out. You will also be eating healthier leading to an overall positive feeling of health.

12. Practice relaxation techniques

    1. If thinking about money or going through any of these steps are hard, then prioritizing stress management is important. Take time to step away from thinking about money. Do something you enjoy. Practice deep breathing. And be mindful about what your mind and body are telling you.

13. Change is hard, that's okay!!

    1. Don't get mad at yourself if you don't reach your budget the first month you start it. Or that you aren't where you want to be financially that same day. This takes time. It's a growing experience that's ever changing. So be patient and kind with yourself.