5 Tips for Managing Your Finances To Reduce Stress
Surveys consistently show that money is the number one cause of stress for Americans. Almost everyone stresses about money at some point in their lives, but some do much more than others.
Date: 7/15/2021 8:23:00 PM ( 14 mon ) ... viewed 52 times
Surveys consistently show that money is the number one cause of stress for Americans. Almost everyone stresses about money at some point in their lives, but some do much more than others. If you are having financial trouble yourself, it may be time to reevaluate your spending. If you have never stuck to a budget before, know that it can be a useful tool for reducing your stress about money. The idea is to know how much money you have coming in and where it is going when it is going out.
1. Set a Monthly Budget
When people hear the word "budget," they often cringe. They think of having to keep up with every receipt and having to track every expense. There are different levels of budgeting, though. Some people do track every purchase in a log and set a goal for how much to spend in each category each month. Others set a dollar amount that they can spend for the whole month but do not itemize expenses. The goal is to create something that your family can use consistently. You need to know how much you are actually earning and spending each month.
2. Identify Unnecessary Expenses
If you have not taken a good look at your monthly bank statement lately, now is the time to do so. For many people, some unnecessary expenses are floating around. For example, you can bring your lunch to work instead of eating out every day. You can subscribe to one streaming service instead of three. You can cancel a magazine subscription that gets thrown in the trash anyway. You may be surprised at how many little things you can cut out of your budget without missing them. After a while, all these little things will add up!
3. Negotiate Insurance Rates
For many people, major expenses are not tied to frivolous things. Instead, most people see the biggest chunk of their paycheck go towards things like insurance. Home, car, and medical insurance are necessary things, but they are usually expensive. Instead of simply accepting the rate that your current insurer has offered you, shop around to see if you can find better coverage. You may be able to find cheap car insurance with some diligent searching. Also, you may be able to save by bundling some of your insurance policies together.
4. Liquidate Assets
If you are in a true financial bind, you may want to start liquidating some of your assets. This simply means selling things of value that you own. Perhaps your family can go from having two cars to having one. Maybe you can move into a smaller house or apartment to save on your mortgage or rent. If you have extra furniture in your house, you can sell it to make some side income. If you look around at your assets, you will likely find something that you can liquidate quickly.
5. Repair Your Credit
If your credit score is causing you a lot of anxiety, credit repair may be worth looking into. This is the process of looking into your credit report and disputing any false information on it. Keep in mind that if you have been consistently late on payments or have a high credit utilization rate, credit repair may not help you. Credit repair is helpful, though, for those who have been victims of identity theft. It is a good idea to look into your credit report about once a year to make sure there is no inaccurate information.
Finances will likely always be something that people stress about. After all, you get up to go to work every day so that you can stay in good financial standing. However, there are ways to reduce your stress about money. It should not be an all-consuming part of your life. If you are looking for ways to manage your money better, start with these five tips.
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