Money can cause stress. But does it have to?
People experience financial stress at some point in their life. Nothing is more stressful than worrying whether or not the bills are being paid or if you’ll finally be able to buy that new house or not worry about every little purchase. This doesn’t even begin to address saving for retirement.
Is it possible to reduce financial anxiety and stress by implementing 3 things?
The day to day financial stress can become less stressful by implementing 3 things. These financial habits can help you feel like you’re back in control. While there is no “one-size fits all” solution, taking these 3 steps will help build a solid financial foundation to help reduce your stress.
1. Know Where Your Money Is Going
One of the biggest steps that is often overlooked is understanding where your money is going. Uncertainty causes stress. When you are uncertain of where your money is being spent and exactly how much, that creates stress and anxiety.
Take the time to map out exactly where your money is being spent, how much and how often. Fully understanding this will give you a different point of view on your personal spending habits. It may even shock you and inspire you to become more conscious of mindless spending.
2. Create Specific Goals & Set Deadlines
Dreams become closer to reality when you turn them into goals. Goals become reality when you iron out the details and take the initiative. Part of this is by making them specific. Whether it’d be saving for children’s education, a vacation home or simply rebuilding your cash reserves, understanding the specifics and creating a timeline can help reduce stress. Put a reasonable deadline to it, check your progress and commit to it.
This clarity will give you peace of mind knowing you’re heading in the desired direction.
3. Budget With A Purpose
Coordinate this step with the goals you just finished identifying. Then, create a budget that allows you to meet those deadlines and be prepared to make sacrifices along the way. Typical spending habits may need to change to make it possible.
Writing down your budget in actual numbers will help give you a clearer picture of what needs to be done. This will help reduce financial stress when you’re implementing your budgetary plan.
A lot of financial anxiety comes from uncertainty and “what if” questions we ask ourselves. By implementing and regularly reviewing these 3 things, it is possible to reduce financial stress.
Life is stressful enough. Our mission is to help individuals and families be financially confident so that they can get back to enjoying what’s important in life.
A little work and clarity can help ease financial stress. Don’t feel you have to do this all on your own. We are happy to help. We have helped our clients go through these 3 fundamental steps over the years. Give us a call at 716-662-4470 to set up your appointment.
Chelsea Maderer is a Financial, Investment and Tax Advisor in the Buffalo-WNY region. She helps individuals and families to Clarify their needs and goals, Solve their problems, and Simplify their life to avoid the common mistakes that get in the way of enjoying life and retirement.
For more information please visit: http://SFTAweb.com.