5 Strategies to Deal With Financial Stress

Financial stress can stem from being in debt, not earning enough money, the expense of raising kids or even being married to someone who isn't good with money. 

If you can reduce your financial worry, you will be able to focus on other important areas of your life and relax, knowing you have a plan to handle your financial situation. Here are a few things you can do now to relieve your financial stress and make it easier to function each day.

01
Create a Budget

Man working at laptop expressing frustration
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You may feel overwhelmed and think that a budget is only going to add to your financial stress, but it is the best tool you have to get control of your finances and stop worrying about money.

A budget allows you to decide when and how you are going to spend your hard-earned dollars. This spending plan makes sure you cover your immediate expenses, while still working towards your savings goals. It can also help you find extra money to put towards debt.

The first few months of planning and sticking to a budget are the most challenging, but once you understand what to do you can often reduce the amount of time you spend on it, and in turn, reduce the amount of time you spend worrying about money. 

02
Get an Emergency Fund

Emergency fund
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An emergency fund is a savings account meant to cover unexpected expenses and financial emergencies. Although a car repair can be expensive and stressful, if you know you can tap into your emergency fund to cover it, a lot of the stress will go away. It is also easier to use the money in your budget the way you planned if you know you have the extra money in the bank ready to cover the unexpected emergencies that may crop up.

You should have at least $1,000 in your emergency fund until you are out of debt. Then you should aim to have three to six months' living expenses set aside. 

Building an emergency fund may seem tough at first, especially if you are struggling to make ends meet each month. Start by putting a small amount, whether it's $10 or $100 each month so you can build up your emergency fund. You may also consider selling any unused items around the house to build up that cash as quickly as you can.

03
Get Outside Help

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If you are really struggling with getting a handle on your budget and spending issues, do not be afraid to get outside help. You can take classes on basic money management and investing, that will help you plan out a budget and do the things you need to succeed financially.

A financial planner can also help you create a long-term saving and investing strategy that will help you take care of your current needs and plan for the future.

If you are feeling overwhelmed by debt you can work with a credit counseling service to help you restructure your debt and in some cases, negotiate with creditors. You can also take financial classes that coach you through budgeting and other aspects of your personal finances. 

04
Determine What You Can Change

We've managed our budget so well this month
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If you are having financial issues, you may have an income issue, a spending issue, or a combination of the two. If you know that you do not make enough money to keep up with your current bills, decide what you can do to change the situation. It may include options such as going back to school to qualify for a higher paying job.

If you think you have a spending problem and it's an addiction, you may want to attend a group like Shopaholics Anonymous to get help dealing with the issues you are facing. Once you have a plan that will help you change your situation permanently, you should be able to reduce your stress. 

05
Track Your Progress

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While this may sound like it's not a solution to your financial problem, it can make a big difference in the amount of stress you feel each day.

Find positive aspects of your financial situation by tracking your progress towards your financial goals. Looking at the positive aspects of your current financial situation can also help alleviate stress. 

Remember, you can change your financial situation, and you will find it easier to do if you are not living in an anxious state all of the time.

Updated by Rachel Morgan Cautero.