The Pressure of Financial Stress.
Pressure and stress can be factors that motivate us to work hard. But, if they’re not properly managed, they can hinder our ability to perform at a high level. Not only can this make it more difficult to appropriately manage our finances, but it can also be the cause of many stress-related health issues. There are a few simple ways that we can better manage financial stress, starting by simply taking a seat, and pulling out a pad and pen… Budgeting is the most obvious strategy, and we’ll discuss that in more depth later. However, one strategy that is often over looked by many people who suffer from financial stress and pressure, is the insatiable desire to compete with their neighbour. That’s why we’ve included this strategy at the top of our list:
6 Simple Management Strategies for Financial Stress
1. Ignore the Competition
Monopoly. Dubbed ‘The Game of Life’. Sadly, it’s a truth that is all too real. Many of us lose track of why we set out to earn in the first place, and tend to measure our financial achievements against those of our friends and family. Do you live to work, or work to live? What are your priorities? Before you start looking at how you will spend your money, or how you can save more money, you need to consider the why. You may not need all of the lovely expensive things that your wealthy friends have. Don’t put yourself under severe financial stress, and over-extend so that you can achieve somebody else’s financial goals. So, before engaging the following 5 strategies, put the competition aside, and focus on what suits your lifestyle.
2. Set Financial Goals
Goals provide us with the direction and motivation needed to succeed. Of course, it does take a little more than simply setting goals in order to succeed (mental toughness for one). But it certainly is a great place to start. Set a long-term goal, and then a series of short-term goals that will act as ‘stepping stones’ towards achieving that long-term goal. To break it down further, you can brainstorm some daily, and weekly activities that will help you in reaching each goal you set. For example, if your long-term financial goal is to purchase your first home in 2 years, a short-term goal might be to save $10,000 in six months. Your daily/weekly activities might be cooking everyday, instead of eating out, or counting and reviewing your expenditure every week.
3. Create a Budget
The absolute staple of every financial planning/management article you’ll ever read. Budgeting is important, as it helps you to set realistic financial goals. It’s also a great way to consider how your finances can best serve your lifestyle/priorities. Using the example above, perhaps purchasing a home in 2 years is a goal for you, although you are unwilling to sacrifice regular brunch dates. Thats fine, if thats what fulfils you, although you may need to reconsider the time frame you’ve set to purchase your first home. Depending on your circumstances, you might like to use a budgeting template, or just create a very simple one yourself. Make sure you track your in-goings and outgoings, and ensure that you have a realistic savings goal so that you always put money aside.
4. Enjoy Without Spending
The advertising industry has you convinced that you can’t have fun without spending money. It’s a lie, but for some reason, we all believe it. Usually, the lies we believe are the ones that are convenient for us to believe… But this lie is extremely inconvenient! So, instead of subscribing to this common misconception, find something fulfilling that you can without spending money. Can you converse with your friend whilst walking in the park and eating a banana, instead of sitting in at a cafe and eating poached eggs with avocado? Probably. We won’t ramble on any longer about all of the great things you can do for free, but to immediately relieve some of that financial stress, go and find something!
5. Live Within Your Means
Living to excess in any facet of life can be dangerous, and a major contributing factor to financial stress is excessive spending. Credit card debt, personal loans, and crippling mortgages won’t make life any easier. Each of these examples of over-spending are usually quite avoidable, simply by exercising some restraint. Once you’ve sat down and budgeted, you’ll have a better idea of what you can and can’t do financially. Your goal will one day be to make a significant outlay in order to satisfy a ‘want’, and that’s fine. But excessive spending in the mean time will not help you to get there any faster. So, be smart, and be disciplined. It will pay off.
6. Consider New Opportunities
This is a step that might not suit everyone, but it can’t hurt to add it in. Opportunities for new revenue streams are a click away these days… I mean hey, you could start a blog! If it’s something you are passionate about, it might also double as your new ‘free’ hobby. You could be creating a new opportunity to earn, and saving yourself money at the same time. Of course, there are a multitude of opportunities out there for those who are actively seeking them. If supplementing your income is something you’ve always been interested in, why not do a bit of research? But don’t wait until tomorrow, it may never come…
Financial stress is bound to strike at some stage, so be proactive in your approach to stress management. Check out our previous article about managing stress, and get across ‘The Stress-Less Game Plan’. As always, thanks for reading, and we’d love to hear what you think in the comments section below.