How To Avoid Financial Stress Right Now
In the midst of this global pandemic, there is a lot racing through people’s minds and causing stress. Does anyone else feel like you should be making use of all of this “extra time” but also allowing yourself to relax while you can?! Mental health is extremely important during a time like this! It’s been proven that money is the most common cause of stress and in the current state of the world, I’m sure that’s amplified right now. I’m going to share some tips that can help you avoid financial stress both right now and in the future!
Start budgeting
It may feel as though it’s too late to begin budgeting, but it’s not! Not only will this help you organize your finances now, but by making monthly budgeting a habit you can stay ahead of financial stress in the future.
Budgeting is easier than you think. Simply create a spreadsheet and input the amount that comes into your account on a monthly basis. If you have a salary then this will be a little bit easier than it is for the freelancers and entrepreneurs out there! But a low average of what you bring in is just fine. Then you can begin to input and subtract your monthly expenses. Be sure to include bills, food, fun activities, savings deposits, those coffee trips... anything you can think of! You’ll be able to see the growing amount of money you should have left over per month as well as where you can reduce your spending a little.
Reevaluate your bills
After making your budget document, you may have realized you can cut back on some of your monthly expenses. Maybe you’ve noticed that you pay for a streaming service that you just don’t use or that your student loans should be refinanced. There is no better time than now to think deeply and creatively about how to save on each of your bills. Also keep in mind that you may be saving money on lunches, coffees, and transportation right now! Since your spending may be a little lower, feel free to put that money into a savings account for extra security.
Look into alternatives for spending
Although money may be tight for people currently, life is still going on and everyone is in different circumstances. Before this all started happening, you may have already been planning to get pregnant, move out of your apartment, or for another big life change and there is still a way to thrive through these times although the world seems uncertain.
For example, if your house needs a new roof or you need to update a current room to make it into a nursery, then consider putting the purchases on a credit card with good rewards. That way, after you’ve purchased, you can get cash back or miles towards a future vacation. Or if you’re looking to move out of the city and into the suburbs, then consider applying for an FHA loan over a conventional loan to buy a home. These are a little more flexible in terms of down payments and credit score requirements, making it easier for you to buy right now! Finally, if you still want to participate in some retail therapy, I’ve covered money savings apps on the blog in the past. If you’re looking for some normalcy in your life, now is the time to take advantage of them!
Finances can cause a lot of stress in our daily lives, and they surely are now more than ever. It’s best to stay on top of your spending habits, save money, and make smart choices when you buy. Additionally, take extra time for self care these days. Meditating, working out, journaling or whatever you love to do to ease your mind are important to prioritize to avoid financial stress!
This post was written by a guest contributor.
