Financial stress is widespread, and without the right guidance feelings of money-worry may only get worse.
In many ways, stress can serve as a positive part of our lives. It motivates us to be prepared, act with a sense of urgency, and get the job done. However, financial anxiety can pose as a serious mental and physical health threat.
If you’re already worried about your finances, take a deep breath and know that relief is possible! Financial anxiety is in fact reversible and we have the tips to help you along your stress-free financial journey.
Create an action plan
Financial stress can come from not knowing how to make ends meet, or how to alleviate mounting debt. It’s easy to feel confused and disheartened when trying to find a solution to something that seems impossible. The good part is that there are multiple approaches you can take to escape the heavy burden of debt and save effectively.
A simple way to start is by opening a savings account. The benefits of having a savings account greatly outweigh the decision to not have one. When contemplating whether a savings account is right for you, consider the following:
Savings accounts accrue interest overtime
As your savings increase, your interest accrues. The money you stash in your savings account will grow over time—and really, who doesn’t appreciate more money?
Savings accounts provide security
Financial emergencies can arise, and they often present themselves quickly. In the event that you encounter financial hardship, your savings can be a nest egg to help get you through your unexpected financial rough patch.
Your savings will ease your stress
Financial worry persists when we focus on what isn’t there. If we have no savings, a brief reminder of that can send us into a panic. By adding just even a small amount of money from each paycheck to a savings account, we not only begin to accumulate wealth, we also gain peace of mind.
Eliminate unnecessary expenses
In 2018, Amerisleep polled 1,008 coffee drinkers about their coffee drinking habits. According to the study’s findings, millennials spent an average of $2,008 a year on coffee, whereas individuals between the ages of 35-44 spent $1,410. Imagine what else you could have spent $1,400, or even $2,000, on in the last year. Maybe it would have been helpful to put it toward your student loan, credit card debt, or even your mortgage. Either way, an extra few thousand is certainly useful.
In 2018, the average personal debt exceeded $38,000! When reviewing your finances, examine just how much you spend on similar habits or other unnecessary expenses. Cutback where necessary and allocate that money straight towards the debt you’d like to pay off.
Focus on a physical outlet, then tackle your financial goals
If you’re approaching the age of 40 and are still behind on paying bills, thinking about how to save for retirement can feel out of reach. A Bankrate survey from June of last year found that 61% of Americans don’t know how much money they will need to have saved for their retirement; 21% of Americans haven’t even started saving yet. With no direction, mounds of debt, and far too much stress, it can seem unfeasible to ever reach a financial goal.
A great way to begin adjusting your financial compass in a successful direction is by taking up physical exercise. Physical exercise reduces stress and anxiety. With just five minutes of aerobic exercise, you can experience anti-anxiety effects. Ridding your body of stress allows a clearer mindset to emerge—one that is ready for big money discussions. Ultimately, you’ll feel ready to tackle your financial goals with confidence.
Understand your debt and options
How much income do you bring in each month, and where does that money go? Though you may be able to answer the first question, it’s common to be stumped on the second when you aren’t aware of how you’re spending or saving money.
Many Americans remain in the cycle of debt for that very reason. They invest in the future but wind up without the means to pay down their debts because they aren’t financially strategic. Though borrowing is a great way to acquire “good debt”, such as student loans, it ultimately comes with the obligation to pay that debt off.
When you are spending more than you earn, debt can add-up quickly. A debt cycle is when an individual continues to borrow, increasing their overall debt and costs, which then leads to default. If you’ve found yourself in this circumstance, as many others have, it’s helpful to know that there is assistance available. Debt consolidation can be an option that allows you to spend less on interest and simplify your finances.
In times of stress, sometimes all we need is to hear the right words from the right individual to feel better. Being in financial turmoil isn’t something you need to work through alone. Sitting down with professional help can be another simple way to begin working toward financial success while also feeling supported.
Save now, not later!
Prudential Bank makes earning interest easy. Open a Personal Savings Account to help alleviate your financial worry and work toward a healthy future you feel secure in. By contacting us today, you’ll live out a financially happier tomorrow.