Are You in Financial Stress? Here are 10 Ways to Beat Your Money Worries in 2024

Before money stress beats you, beat it with these ten simple tricks that you can do in a flash.

Do you often wake up in the middle of the night with goosebumps because of money problems? And anxiety is eating you up from the inside because you’re falling behind on your mortgage and your career is going nowhere? It’s financial stress and it’s getting the better of you. But you can fight back!

First, you need to know what is causing your financial stress. So let’s take a look at four common reasons when people think they’re helplessly mired and slowly sinking in in the money quicksand. Then we’ll tackle ten simple solutions on how to get you out of that mud and that sinking feeling of helplessness.

Causes of Financial Stress

Financial stress can go from wreaking havoc on your wallet to ruining your health if you’re not careful. WebMD even listed finances as a common stressor that can trigger long-term diseases and bust your budget even more. As with any problem, the first step is to know the enemy so you can fight it. What is causing your financial stress? The obvious answer may be money, but, surprisingly, not quite so, or at least, not in its black-and-white context.

• Expenses are greater than income: You spend more than what you are earning. You’re maxing out your credit, taking payday loans for trivial things, or taking some cookies from your retirement fund. It’s a spending habit that turns into an addiction.
• Living paycheck to paycheck: You count the days by 15s hoping you’ll make it to the next. Even your toilet paper is replenished every payday because you always totally wipe out your salary paying off expenses and debts.
• Debt: The feeling of being indebted can be terrible. You may even feel shame or disgrace that often destroys relationships between friends and family members. Paying it up off a big chunk of your salary over a long period can make you feel like that rat in the wheel.
• Lack of financial plan: You feel you’ve lost control of your finances because, to start with, you don’t have a goal or financial anchor. You sit there in your dingy that floats aimlessly in the middle of an ocean of spending.

Get Rich Schemes Won’t Solve Your Money Stress

You might think that unless you’re unemployed or in need of emergency cash, having more money solves your problem outright. But often, the more money we have the higher our financial stress. Not to say this it is always the case, but the truth is we have an insatiable thirst for more things that money can buy.

If you think billionaires are just happily singing Kumbaya every day, you can’t be farther from the truth. Many of them are also stressed out than you’d think especially during economic downturns. The more you have the more you can lose, after all.

The real key to dealing with financial stress is to change your behaviour towards money. Spend smarter, invest more and save some.

Fight Financial Stress With These 10 Tips

We have met the enemy and he is us, so goes the popular quote from the classic comic Pogo. In many ways, you are your biggest obstacle to getting rid of financial stress. The following advice will help transform you from enemy to best buddy.

1 TALK POSITIVELY

There is power in words and in the language that you use. Don’t say negative or wishy-washy things like if only you have more money or that you need to stop buying things. Put force and specifics into your thoughts. Say, “I’ll only buy things that I really need to save for my retirement;” or “I will find another income.” Indeed if you’re seriously looking for another income source, you can earn extra income while you keep your day job.

2 CHANGE YOUR MONEY VIEW

It’s amazing how simply changing your financial perspective can result in drastic improvements. For example, instead of using the formula, INCOME + LESS EXPENSES = SAVINGS; change it to INCOME + SAVINGS = EXPENSES and watch your money grow. It takes discipline to stick to the second formula, but by changing your view, you’ve made the first step.

3 BELIEVE IN YOUR POWER

Believe that you can solve your money problem. There are people who have been in worse financial straits than you, and they’re able to get out of their dilemma. Hopelessness is the idea of losing control over the situation; believe that you still have control over your finances and you start bringing in hope back into your home.

4 FOCUS ON GOOD NEWS

Think of the other great things that you have. Your health maybe. Your family. A great kid. Steady job. Great friends. Solve the things that you can today, and be at peace with those that you can’t for the meantime and life will suddenly be more bearable.

5 LIVE IN THE NOW

Plan for tomorrow but live in the present. Worrying too much about tomorrow is as unhealthy as living in the past. We all can plan so much to safeguard our future; beyond that, you may be shortchanging the present. Play with the kids or take an afternoon walk with your partner. Sometimes, it’s also nice to stop and smell the flowers.

6 AVOID JUNG THOUGHTS OF FAILURE

A bad credit doesn’t mean you’ve failed. It only means you’re caught unprepared. Even some of the most successful people today have, at one point in their lives, failed miserably in their credit. It is what you do after the setback that defines your success.

7 TAKE A BREAK

When you find yourself worrying about the same things every minute, it’s time to jump into that gym or yoga suit. Exercise or join a mediation class to ease out the worries. Keep your mind healthy and your body fit, in fact, even more when problems strike. You’re better armed and focused to solve problems when you are healthy.

8 ASK FOR FINANCIAL HELP

There are financial coaches or specialists who can help people solve their money problems. You can also talk to a family member or close friend and ask for financial assistance if you believe this is to your best interest.

9 CUT YOUR DEBT

The ideal ratio is to limit your debt payment below 40% of your salary. Work out a plan with a financial coach or a professional friend on how to pay up your debts. Identify unnecessary expenses that you can reallocate to debt payment. The faster you can pay all your debts, the better.

10 INVEST AND SAVE

Save or invest at least 10% of your income. This holds true even if you’re paying off debts. Do away with impulsive buying. Cut the credit for the meantime and put the money instead on investments. If debts give you the blues, savings and investments are your stimulants.

IT ALL STARTS WITH YOU!

To beat money stress you must first identify what is causing it. Likewise, you must realize that having more money is not the real solution; rather it’s changing your perspective about money that will help you recover from financial stress. Lastly, by following our ten financial stress-busters above YOU CAN BEAT FINANCIAL STRESS!

Is there a bad financial situation that you were able to come out of?
How did you do it?

Key Insights

• Identify Causes of Financial Stress: Common causes include expenses exceeding income, living paycheck to paycheck, debt, and lack of a financial plan. Recognizing these issues is the first step to addressing them.
• Behavioral Change Over Quick Fixes: Long-term financial stability requires changing your behavior towards money, focusing on smarter spending, saving, and investing rather than seeking quick financial fixes.
• Positive Mindset: Maintaining a positive and proactive mindset about your financial situation can significantly impact your ability to manage stress and make better financial decisions.
• Practical Solutions: Implementing practical steps such as talking positively about finances, changing your financial perspective, cutting debt, and seeking professional help can effectively reduce financial stress.
• Health and Well-being: Addressing financial stress involves taking care of your mental and physical health through exercise, meditation, and breaks to maintain focus and resilience.

FAQ

1. What are the common causes of financial stress?

   Common causes of financial stress include spending more than you earn, living paycheck to paycheck, accumulating debt, and lacking a financial plan. These issues can create a sense of helplessness and anxiety, impacting both your finances and overall well-being.

2. How can changing my perspective about money help reduce financial stress?

   Changing your perspective about money involves focusing on saving and investing rather than just spending. For example, prioritizing savings and treating expenses as secondary can help you build a financial cushion, reducing stress and providing a sense of control over your finances.

3. What are some practical steps to manage and reduce financial stress?

   Practical steps include talking positively about your finances, changing your money view, believing in your power to solve financial issues, focusing on the positives in your life, living in the present, avoiding thoughts of failure, taking breaks, seeking financial help, cutting debt, and investing and saving regularly.

4. Why is it important to talk positively about finances?

   Talking positively about finances reinforces a proactive and optimistic approach to managing money. Positive language can help shift your mindset from a place of lack and worry to one of control and possibility, motivating you to take constructive actions towards financial stability.

5. How does living in the present help with financial stress?

   Living in the present helps reduce anxiety about the future and regrets about the past. By focusing on current actions and decisions, you can enjoy life more and manage stress better, while still planning and preparing for the future.

6. What should I do if I feel overwhelmed by financial stress and can’t manage it alone?

   If you feel overwhelmed, consider seeking help from financial coaches, specialists, or trusted friends and family members. Professional guidance can provide you with personalized strategies and support to manage and reduce financial stress effectively.

7. How can cutting debt help reduce financial stress?

   Reducing debt lowers financial pressure and frees up more of your income for savings and investments. By limiting debt payments to below 40% of your salary and working on a plan to pay off debt, you can improve your financial stability and reduce stress.

8. Why is saving and investing important even when paying off debts?

   Saving and investing, even while paying off debts, ensures that you build a financial cushion and secure your future. This dual approach helps you manage immediate financial obligations while also preparing for long-term financial stability, reducing overall financial stress.

By Allan Jay

Allan Jay is FinancesOnline’s resident B2B expert with over a decade of experience in the SaaS space. He has worked with vendors primarily as a consultant in the UX analysis and design stages, lending to his reviews a strong user-centric angle. A management professional by training, he adds the business perspective to software development. He likes validating a product against workflows and business goals, two metrics, he believes, by which software is ultimately measured.