How to reduce your financial stress

How can a hole in your pocket cause a hole in your gums? The answer is stress. Financial stress affects more than your wallet. It can have a ripple effect on your health and your interpersonal relationships. In no other process can our thoughts alter our bodily functions so suddenly and so powerfully.

stress makes work an elite branch of your corps' military, specially trained to take emergency action in response to major threats. As soon as your brain senses danger, it goes into fight or flight mode. It sends orders to the outposts of the adrenal and pituitary glands to mobilize the hormones adrenaline and cortisol.

These in turn send reinforcements to different areas of the body to increase blood pressure, heart rate and energy so you can fight or flight with all the power your body can muster. During a crisis, stress pushes us to act to save a life or meet an important deadline.

But if you were to call stress into battle every day, your body would inevitably feel the consequences. Prolonged stress increases your risk of heart attack, diabetes, hair loss, depression and gum disease.

Okay, so hearing that stress can make things worse isn't exactly soothing. The good news is that time and deliberate action can simultaneously improve your financial situation and free you from the grip of stress.

In this article, we'll cover ten ways to do just that. We start first by removing some of the mental roadblocks that are keeping you financially stressed. But before you start, here's how to improve the conversion rate in your online store.

?? The Mental Obstacles of Financial Stress

1. Start by narrowing down your choices

It's too easy to let the fear of making the wrong choice keep you from making any choices. Maybe you have a limited amount of money to invest, or you're worried about making a big purchase. Sometimes you can't decide what's most important. If you are faced with a multitude of possibilities remember this: you don't have to make the “right” choice, but the optimal choice. You don't have to make the “final” choice. You simply have to make a choice, the choice to act.

There are tools to help you and we are going to show them to you. But first, let's address another mental roadblock that can keep you financially stressed. Then learn to let go of your defeatist attitude.

2. Let go of your pessimistic attitude

The second mental obstacle that leads to financial stress is pessimism. If the fear of making the “wrong” choices about your finances has left you feeling indecisive, imagine how people must feel who think they have no choice at all. The idea of ​​letting go of your pessimistic attitude is to find a way to believe that somehow, even in the most untenable circumstances, there is hope.

Organizations like America Saves exist to help you find that hope. Simple things like making a gratitude list or visualizing yourself without financial stress can also help you feel more optimistic.

Now that you're feeling decisive and undefeated, you're almost ready to receive some practical strategies to reduce financial stress. But first, let's discuss how to overcome another mental barrier to reducing financial stress. I'm talking about your life partner.

3. Stop rowing in circles

Working together will help keep your financial boat afloat (and save you a lot of stress!). Working together will help keep your financial boat afloat (and save you a lot of stress!).

When it comes to finances, imagine each household as a boat. If you're alone, you'll have to pull your own weight to get where you want to go. If you have a family to support, your trip may be easier or much more difficult depending on whether your rowers are rowing together or not.

Take the example of the hypothetical couple Faustin and Faustina. Faustine, a notorious spendthrift, studies the advertising flyers and reprimands Faustine for paying $0,50 more than necessary for soap. “But I would have had to go to two stores to get that discount!” » Faustin protests, frustrated.

Even in relationships where couples are basically on the same financial page, differences in priorities (she wants to send the kids to private school; her partner wants to save for college) can turn the boat around. To move the boat forward, the partners must learn to communicate and row together.

?? Tools for dealing with financial stress

4. Set your budget and stick to it

Now that you've removed some mental roadblocks that are keeping you financially stressed, you're ready to learn about the real solutions to financial stress. There are four basic principles for revamping your financial life: stick to a budget, cut spending, reduce debt, and start saving.

Budgeting is not rocket science. In the simplest terms, you put your income at the top of the page and beyond that you deduct your expenses. The remaining amount is what you can spend on other things, like reducing debt and increasing savings.

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Having a written budget gives you confidence in your personal financial strategy. Which can also help you significantly reduce your level of financial stress. There are literally hundreds of apps and tools you can use to create a budget. Here are the free online budgeting sites and financial networking tools you can use Mint.com, Geezeo.com, and Wesabe.com.

However, even people who recognize that budgeting is important can find themselves slipping, rather than sticking to a budget. Not only do unexpected expenses—car repairs, price hikes, and Cub dues—spoil us; we can also get distracted by fun things like dinner invitations, pit stops at Starbucks, and “two-for-one” sales on items we may or may not need.

5: Reduce your expenses

Reducing your expenses reduces your financial stress. When setting a budget, you may uncover some unwanted truths about your financial situation. Fortunately, the skills you've learned to overcome the mental obstacles that keep you financially stressed will come in handy as you navigate the challenges that budgeting can present. When your budget shows you have more months than money, the solution is to cut spending.

With the right attitude, cutting expenses can actually be fun. Make it a game. Encourage little Faustin to earn his own Boy Scout dues by mowing the lawns. Allow teenage Faustine to have her own smartphone – if she gets a job on Saturdays to cover the bill. Divide the grocery list and separate the family to see who can find the best deal.

There is also free online resources to help you save. We'll talk about that later. With a little ingenuity and an optimistic attitude, you can and will be successful in reducing your expenses, leaving you with more money at the end of the month to spend on other basics of financial planning.

6: Get rid of your debts

While eliminating debt, retirement, and emergency savings are all essential to eliminating financial stress, getting rid of debt should be your number one priority. Certain types of debt (mortgages, student loans, etc.) can actually be good in the sense that they help you build your credit rating.

If you have excellent credit and feel that your rates are too high on your "good" debt, you may be able to cut costs simply by restructuring your "good" credits to lower rates.

When it comes to "bad" credit - revolving credit or credit card – however, the only solution is to pay it back as soon as possible. Here are some tips for accelerating debt reduction:

• Consolidate the balances of credit card on the cheapest card possible
• Always pay more than the minimum balance.
• If you pay more than one card, always pay the maximum possible amount on the card with the highest interest rate.

Once you've settled your debt, you end up with extra money at the end of the month. We then talk about savings strategies.

7: Retirement Savings Strategies

Looking closely at your retirement options and investing wisely can give you financial peace of mind.

If you can't decide how to invest the money you put in your account, consider storing it in a targeted retirement fund. You tell these funds the year you plan to retire and the fund chooses a mix of stocks and bonds that will provide the best return with the least risk based on how much time you have until your retirement date. of your retirement.

Now that you've changed your attitude and mastered the basics, you should feel less stressed and more in control of your finances. At this point, it's time for a little fun. We then talk about ways to improve your credit score.

8: How far can he go? Optimize your credit score

If your credit score is stressing you out, turn it into a game, the same way you turned cost cutting into a fun family activity. And speaking of cost savings, we talked earlier about free online tools to help you save.

Obtaining a low credit score is a long and laborious process of paying your bills on time, building equity, and paying off debt. It takes years and there are few shortcuts. However, there are several things you can do to improve your score.

9: Surf the net and save

Sites like Billshrink.com are amazing, free resources with lots of money-saving and cost-saving tips.

Do you remember Faustine from our hypothetical couple Faustin and Faustine? Rather than scanning flyers for bargains that would have only saved pennies (which would have been burned by going to a second store to make purchases), Faustine would do well to investigate some of the new sites. cost reduction and cost comparison on the internet.

Sites such as billshrink.com, billeater.com and validas.com are free cost comparison search engines that save you money. You enter information about what you spend on gas, cell phone bills, TV service, credit cards, utilities, insurance, and a host of other consumables, and these sites offer alternatives which can save you money.

For example, if you tell Billshrink that you pay $3,65 a gallon for gas at Station X on Y Road, the service will let you know if there is cheaper gas nearby.

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Sites like Billshrink cost you nothing and take the stress out of cost comparisons by doing most of the time-consuming research for you. Knowing you're saving money will give you confidence in the purchases you make, which brings us to our number one tip for reducing stress and saving money. Coupons come next.

10: Coupons, Glorious Coupons!

Legend has it that Coca-Cola Company owner Asa Candler created the world's first coupon by handwriting tickets for a free drink of Coca-Cola in 1887. Since then, coupons have become a mainstay of American consumer life.

They are now all over the internet with sites like Coupon Sherpa and phone apps like Pushpin. You don't have to become an "Extreme Coupon" to enjoy the benefits of coupons. Here are some tips for stress-free couponing:

Learn the lingo: a “stackable” coupon is one where you can use a manufacturer's offer in addition to a store coupon. A "double" coupon is a situation where a store doubles the value of a coupon on a certain day or period.

Be organized: mobile apps like Pushpin organize and keep track of your coupons for you. For old-fashioned paper vouchers, you'll need to organize them yourself by date and type so they don't expire before you can use them.

Buy only what you need: a bargain isn't so sweet if that two-for-one shampoo is gathering dust in your cabinet months after you buy it. Only cut coupons for brands and products you actually use.