How to Reduce Financial Stress
Financial stress is a common type of stress for adults in the UK. According to the Money Advice Service, one in five UK adults say they are drowning in debt and money worries. As a result, many say that their mental health has deteriorated. This is why we believe that reducing your stress levels is important. This article will try to help you ease your financial stress by giving you tips on how factors like budget creation and mentality can help lower your levels of stress. But, please bear in mind that these tips are not for everyone.
Having money worries isn’t uncommon
The Money Advice Service suggested that half of all Britons have some sort of personal debt. So, you’re not alone when it comes to stress linking to your finances. It is likely that there are multiple people who you know are too, this could even be close family members or friends. Everyone is likely to experience some sort of finance-related stress whether they are 18 or 80.
How can I reduce my financial stress?
Reducing stress from your finances might be something you believe is impossible. But, realistically, there are plenty of ways to reduce and even get rid of your stress to completely transform the way you feel.
1. Choose a budget
Firstly, one way to improve financial stress is to create a budget. Maybe you have one at the moment which isn’t working for you. So, now you’re starting to think you need to find another. We believe that finding and sticking to a budget is one of the best ways to keep on top of your money. If done properly and with the right budget for you, your levels of stress will reduce. This is because you will be able to gain control of all your money.
One of our favourite budgeting rules is the 50/30/20 idea. This is where 50% of your monthly income goes on essentials like bills and food. 30% is used for things you want, and the remaining 20% is saved in savings. This way you should be able to afford all the essentials whilst having some extra for a treat and saving too. Although, please note this doesn’t work for everyone, there are plenty of other budgeting and saving ideas and tips which will be right for you.
2. Create a personal plan
Creating a plan is one of the best ways to reduce your stress. This doesn’t have to be a budgeting plan, as we know that the established ones might not work for everyone. But, creating your own plan isn’t only a way to help your mindset, it is also a great way to understand your own finances.
Although the 50/30/20 rule is great, it might not even suit your income. Those with higher or lower than average incomes might think 50% of there income on essentials is too much or little. So, you need so have a look at your outgoings and income and work out the amount you spend on the essentials by yourself. This way you will be able to create a plan which suits you exactly.
3. Create a positive spin
Creating a positive spin on your debts will help change your mindset and the way you see your debts. Your mindset plays the biggest part when it comes to your financial health. You can either choose to feel sad and worried or choose to feel motivated by them. Imagine how you will feel when you see that your debt load is decreasing and becoming smaller and smaller.
4. Be honest and realistic
Being true to yourself whilst being realistic is difficult. We have all made a mistake with our finances, whether we made the mistake of going out for a meal with friends on the weekend when we weren’t supposed to be spending. Or even we did some emotional spending even though we shouldn’t have. But, when it comes to saving money and keeping on track of your finances, we should always allocate ourselves a certain amount of money to spend. This is because throughout the month we are bound to spend some money on non-essentials at some point. So, if we didn’t have any money to do so and we had to dip into savings, it would just cause more financial stress.
5. Ask financial experts
So, instead of letting stress get the better of you and your health, it is time to make that decision to take control of your finances. You should use a financial expert or an online business who specialises in the industry to help you. They will be able to understand and explain the best ways to get out of debt, stress and any difficulties. This will give you peace of mind in the long run, leading to your levels of stress-reducing.
Overview of Financial Stress
At some point in our lives, we will all stress about money, but you’re not alone in this situation. If you even try to follow any of these tips, it can help you to get in control of your financial situation.
Here at BingoLoans, we offer lots of advice and tips within our blog posts and articles to help those who are unsure of how to manage their money in the most efficient ways.