8 Things You Can Do Today to Stop Stressing About Money
Today, we are more unhealthily obsessed with our money and finances. We feel perpetually stressed about our bills, paycheck, savings, and bonuses. And it gradually starts to affect our physical and mental well-being at large.
Yesterday as I went to play in an escape room near me, I had an interesting conversation with a friend. While we participated in some stress-busting activities, we discussed how money had become a stress point in our lives. And that brought us to devise some great ways to stop stressing about money.
So, in this article, let me share all those points to help you stop stressing about money.
1. Always keep a detailed track of your expenditures.
Most of us do not adequately track our daily, weekly, or monthly expenditures. Consequently, we often end up spending more than we can afford to!
Thus, to avoid recklessly spending more money than you can afford, start maintaining a detailed record of your expenditures. You can use a notepad and a pen to jot down each one of your expenditures, no matter how little one might be. This way, you can always go back and see how much you have spent.
2. Shift from credit to debit card
A debit card ‘debits’ or immediately deducts the money from your desired account. However, when you use your credit card to make purchases, you must pay off the balance to your bank every month. Thus, when you use your credit card, you need to pay a high-interest loan to your bank.
Using your credit card for every purchase brings you closer to your doom. It requires you to not only pay interest for each of your purchases but does also require you to pay for those items in the next ten years. Thus, change from using your credit to a debit card for purchasing things.
3. Always have a monthly/weekly budget.
Figure out how much of your money you can afford to spend, and based on it, draft your budget. And ensure that your budget is realistic enough for you to stick to it.
You can divide your budget adequately between your different necessities, like food, medicines, commutation, etc., and entertainment like going out to a restaurant or the movies. After you have prepared your weekly/monthly budget, make sure you stick to it.
4. Open a separate savings account.
Before we go into anything else, remember this savings account is an account different from your regular personal account. This account is where you can save up some of your money every month so you can use it later in your old age. Often people get so reckless in spending their money that they save up almost none of their income, leading to financial problems in the future.
While you are still in your 20s, you probably would not have to worry much about paying your bills or mortgage on time. Thus, it makes your 20s the best period to start saving up your money as much as possible. Ideally, you can aim to save up at least your income at this stage. Start by saving up a small amount of your money, and then gradually increase the amount you save.
5. Stay clear of bad advice.
Learning to manage your finances is essential for you, or else people might find ways to mismanage your finances. For instance, unscrupulous financial planners with evil intentions can easily make you bankrupt with their advice if you are not well aware of ways to manage your finances!
Even some of your relatives, though not with bad intentions, can often give you advice that proves fatal for your purpose. Thus, you need to educate yourself on how to manage your finances instead of relying on the advice provided by random and unqualified people. Make sure that you always remain in charge of the reins of your finances.
6. Keep an emergency fund for yourself.
Maintaining some of your money to use in case of an emergency is also an essentially vital practice. You must keep aside some of your money, no matter how much funds you have to pay monthly to clear your student loan or how tight your budget seems on a specific month. Remain resolute in yourself that you would not even touch this money if it is not an emergency.
There might even be a time when you will find that you have saved up more money than you need in your emergency savings alone! In such a case, you might even think it fit to shift this excess money in your emergency savings to your savings account.
7. Indulge in investments
If and when you have some free time, either during the weekends or even during the weekdays, you can read about mutual funds and investments. Become aware of how these financial instruments work. Once you feel confident about it, you can start a SIP with a small sum of money and invest it in mutual funds.
Cryptocurrency has soon become a hot topic these days. So, if you are considering investing your money, you can even research cryptocurrency and start investing a minimal amount of your money in it. However, when you begin to invest your money this way, remember that the key to investing is buying and holding on to your stocks/shares. Once you notice how your money grows over time, it will make you feel more confident in yourself.
8. Examine the transactions you made
Ignorance is not always bliss, especially when it’s about how you spend your money. Print out or download your monthly bank or credit card statements to cross-check your expenses.
Once you do that, you can figure out the excess or unnecessary payments you make every month. You might figure out that you are still making payments for a subscription you no longer use or find out transactions you do not realize. The latter can even be evidence of fraudulent cases!
Financial stress can bore you down if you do not know how to handle it. Thus, keep these tips in mind as you plan and spend your money henceforth. Remember that money isn’t your master, so don’t let it control you. It is your decision and strength. Thus, with determination and effort, you can live a life free from stressing over money 24/7.
