4 Tips to Cope with Money Stress

4 Tips to Cope with Money Stress

Anxiety about money can be one of the greatest life stresses we experience.

It is a particularly challenging time for many of us as we grapple with the uncertainty around jobs, national elections, the global economy, and our savings and investments. By taking a step back from your worst fears and making sure you control your cash — it’s possible to actually get some sleep at night.

Review your Budget

Get action-oriented and find out where you can trim your spending. In times of financial stress, reviewing a whole month of expenses can be overwhelming.

However, pulling back on those extras can help bring some peace of mind.

Focus on Opportunities

Our instinct in uncertain times is to hustle to the spending side of our personal financial statements, but our financial stability is two halves of a coin — there are opportunities to improve our financial situation with the money we bring in as well.

Is there a possibility to negotiate bonuses for extra work you’re doing? Anything you could consider reselling? Is it time to revisit starting that business?

Innovating our income opportunities can be daunting when times are tough, but sometimes, necessity spurs some new creative paths in our lives.

Build a Financial Safety Net

Another way to deal with financial stress is to get in the habit of saving.

If you’re feeling stressed about money, start by making a commitment to save a portion of each paycheck and have the money automatically deposited into a savings account. You can start small to build savings momentum as you work toward a specific savings goal.

According to the 50-20-30 rule: 50 percent of your paycheck should go toward must-have living expenses, 20 percent to savings goals and the remaining 30 percent to discretionary spending.

Educate Yourself

We tend to fear what we don’t understand. If fear of the unknown causes you to stress about money, turn those unknowns into “knowns.”

Research your options online, take a personal finance class (there are plenty of free ones online), talk to a financial advisor, a friend, mentor or relative: Talking helps you share the burden and provides some guidance you on your financial path.

As you find proactive ways to stay on top of your finances, you just may find more calm even in these difficult times.