Struggling with debt, losing your job, or worrying about covering your rent is a common reality for millions of Americans. According to the American Psychological Association, more than 70% of adults feel stressed about money, which makes financial stress one of the most widespread monetary problems. In this article, we have gathered the most effective techniques that will help you cope with stress and reach financial security.
1. Identify the problem
First off, it’s crucial to understand the scope of the problem. Are you having issues repaying your debt, failing to meet this month’s rent bill, or lacking money for your emergency fund? If you are considering taking a loan, check out the payday loans app, where you can consider loaning options available today. Not all situations call for a loan, so if you have one of the mentioned monetary issues, buckle up for step two.
2. Create a budget
It might sound like trite advice, but budgets can significantly improve your financial situation. Combine your income from your full- or part-time jobs and other side gigs to calculate your monthly earnings. There are a couple of ways to proceed: you can manually subtract and add on a piece of paper, use specialized software like Excel, or download a budgeting app. We strongly recommend you install a free budgeting and tracking app, like Mint or PocketGuard, as they will automate the whole process and allow you to save a lot of time.
3. Find a side hustle
Oftentimes, cutting your budget will leave you in a strained financial situation, so consider maximizing your income with new gigs and side hustles. You can sell old items that you no longer need on Craigslist, eBay, Amazon, or Bonanza, start tutoring, set up your shop on Etsy (if you have a side hobby that you can monetize), or even negotiate for a raise at your current place of employment. At first, it might not seem much, but soon enough, you will start accumulating income from your additional activities.
4. Deal with your debt
Prioritize managing your debt, as it’s usually one of the most common sources of stress. There are a couple of approaches that will be of use, including the snowball method, which requires you to start with the smaller debt to get rid of the total number of debts, or the avalanche method, which requires you to repay the loans with the highest interest rates first.
5. Start an emergency fund
The lack of an emergency fund is a common source of financially-induced stress. After all, you don’t want to end up in a situation where you need to cover your hospital bill or fix your car while you are short on money. It isn’t necessary to start big; a couple of dozen dollars per month will begin accumulating pretty fast and soon lead to a sizeable emergency fund.
To sum up, finance-induced stress is a pretty common problem. Addressing your current financial issues and reorganizing your financial life will help you reduce anxiety and start your journey toward financial stability.