Whether you’re a pro or taking on the responsibility for the first time, dealing with finances can be stressful. This can be especially true if you’ve recently experienced a financial stressor, such as debt, reduced work hours or income, paying off a new mortgage, increased rent, or covering an emergency. No matter your situation, the team at FFB wants to help you get back on your feet by letting you in on a few ways that you can reduce financial stress:
- Create a Budget
Creating a budget and sticking to it can be one of the simplest and most important ways to help manage your finances. You can start budgeting by making a list of all your monthly expenses and categorizing the items into needs and wants. Next, look at your net monthly income and decide how much of it you want to dedicate towards needs, wants, and savings. As you start figuring out these numbers, you may want to consider cutting back on unnecessary wants to help save some money – such as ditching your daily Starbucks coffee for an at-home version instead. Once you’ve determined your budget, be sure to monitor your spending to help you stay on track. If you have recurring monthly expenses, you can even set up automatic bill-pay to help ensure that certain needs are covered on time.
- Set Up an Emergency Fund
Accidents happen, and things won’t always go according to plan. In these cases, preparation is key. With an emergency fund in place, unexpected costs will be less likely to catch you off-guard and less likely to cause you additional stress. When budgeting for an emergency fund, it may be best to start with small, regular contributions that will build up over time. It is often recommended that you aim for an emergency fund with enough savings to cover three to six months’ worth of expenses.
- Find Ways to Earn Extra Cash
If a lack of funds is one of the reasons behind your financial stress, then you could explore ways to earn additional income. For instance, you can talk to the management team at your job and ask to work extra hours or even discuss a raise to help increase your income. If those options are not for you, then perhaps consider starting a second job or creating a side gig. This could include selling a craft, pet-sitting, delivering food or groceries, and more!
- Don’t Get Stuck in the Past
For some people, their stress may have been brought on by poor financial decision making. While it can be easy to dwell on your past mistakes, focusing on them will only worsen your anxiety. Instead, it is best to use your mistakes as a learning opportunity. By knowing where you went wrong and researching what to do differently, you will be able to better plan for a healthy, financial future.
- Talk It Out
When financial stress hits, know that you don’t have to deal with it alone. This is particularly true if you are sharing your finances with a partner. Although it may seem like a tough conversation to have, discussing your finances together is an important way to create a suitable budget, reduce arguments, and decrease your financial stress. For those who are managing their finances on their own, you can still seek advice from trusted friends and family to help ease your financial worries. Of course, whether it’s you alone or you and a partner, you are always welcome to call upon your friends in finance at FFB for expert help with finding a solution to your financial needs.
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