How To Achieve Peace Of Mind About Money

Written by Tina Martin

In 2017, a poll conducted by the American Psychological Association (APA) showed that 62 percent of Americans were dealing with stress over their finances. Unfortunately, stress is linked to a number of serious mental and physical health problems including depression, anxiety and cardiovascular problems to name a few.

With the health risks associated with “financial stress,” it’s wise to avoid it as much as possible. But how do you get back on track with your finances so you can reduce stress? Here are five steps to get your finances back on track and keep them there, presented to you below by Raxxmorz.

Step 1: Assess Your Finances

To begin to recover your financial health, you’ll need a starting point. Write down all your monthly income and expenses as well as overall debt. You should include a credit score check. If you have other assets, NerdWallet has a list of what else you should check.

Having this all data in one place will show you how much to spend. Consider how you can save money on the necessities. For example, can you find a cheaper phone or Internet provider? You can also negotiate with service providers to reduce some of your monthly bills. Learn how from The Simple Dollar.

Step 2: Pay Yourself First

This means putting money into your savings account. According to Forbes, this money habit can boost your wealth. While you might think there is nothing left over, review your expenses with a fine-tooth comb to find a few extra dollars. While putting $5 into your savings account every paycheck may not sound like much, it’s a good start.

Step 3: Create An Emergency Fund

An emergency fund is necessary when big-ticket items break, when you need a large deductible payment right away, or when the unexpected happens such as losing your job. What would constitute an emergency in your home? Read these tips from NBC News on how to set up a sizable emergency fund in just 90 days.

Step 4: Create Your Budget

You’ve already listed income and expenses so you are well on your way to creating a monthly budget. The Balance recommends that you break your expenses in your budget into fixed and variable items. Fixed items stay the same every month, such as rent or lease payments, while variable items change. Common variable items include gas, groceries and outings or gift buying. Be sure to include savings and emergency fund contributions as a fixed item in your budget.

Remember to revisit your budget whenever your income or expenses change.

Step 5: Find Additional Savings And Income

If you still find things are tight, take these extra steps to save or make more money:

• Use coupons and deal sites to find discounts.
• Use rebate apps to get money back when you purchase items in stores or online.
• Do a small side hustle. You don’t want to work an entire second job but if you can put in a few hours doing something easy in your free time, it can help temporarily.
• Sell items in good condition on Ebay, or in yard sales and second-hand stores.

Other smart ideas to take to help your financial situation include setting a money objective and getting support to achieve it. Learn more in this article from U.S. News.

Reducing Stress

As you work toward having better control over your finances, take steps toward reducing your stress. Here’s how:

• Daily meditation. Having a quiet, peaceful time to center yourself is something that should be part of your daily routine.
• Exercise. This is good for your heart and helps to reduce stress. Talk to your doctor about a fitness routine.
• Proper self-care. Spend some time alone doing something that you like.
• Keep things clean. Keeping a tidy house can work wonders for your stress levels. Take your cleaning to the next level by searching for “upholstery cleaners near me” and hiring pros to give your furniture some TLC.

Financial stress is a big problem in America today but you can reduce the stress by taking steps to steadily improve your finances.