How to Reduce Financial Stress
Most people consider health in terms of physical and mental health. However, one important pillar that often gets overlooked causing more stress than health, work, and personal relationship is your financial health.
While financial health has different meaning to different people, it ultimately comes down to the current state of an individual’s financial condition (including income, savings, expenses, and retirement plans).
Almost 50% of Canadians have admitted that they have lost sleep due to financial worries. The pandemic has only increased it further.
These negative impacts of financial stress can play a key role in bogging down your day-to-day wellness. It may result in poor health that can lead to more serious problems like high blood pressure, heart diseases, and mental health conditions like anxiety and depression. It can also wreak havoc on your personal life.
The best way to deal with financial stress is to take control of your financial future. Here are a few tips recommended by our Trust Life financial advisors.
- Take the time to create a realistic budget and most importantly, stick to it
A business functions well through careful accounting and budgeting. The same principle applies to an individual’s life.
The best way to gain control over your savings and expenses is to have a budget in place. It allows you to determine where your money is going and help you see whether the allocation is done properly or not.
Start your budget by ensuring that your immediate requirements are covered. Prioritize rent or mortgage, utility bills, transportation, and groceries. When you subtract these expenses from your after-tax income, you will get a clear idea of how much you can potentially save.
Make sure you stick to the budget and review it occasionally to ensure your targets are fulfilled in accordance to your current situation.
- Get rid of debt as soon as possible
Debt causes stress. Lowering your debt load can magically lower your financial stress for good.
Create a list of your outstanding debts – start with the most toxic ones. Those are the ones with the highest rate of interest (e.g. credit cards). From there, set yourself a reasonable payment timeframe.
If you are struggling with your debt, it may do you good to talk to the creditors to find out a feasible solution.
- Create extra income sources
A realistic budget help you focus on the expenses. But it is also important to focus on the revenue side. That is precisely where a side hustle comes in.
Monetizing your interest or your favourite hobby is a way to generate income without feeling like you are taking on another job.
Also note that selling the items you don’t need on the internet can make you some money in dire circumstances.
- Professional advice
So your budget is made. Your debts are paid. Even then, you have found out that you are struggling to meet your goals. In such a case, don’t hesitate to seek professional advice.
Talk to our advisors for professional insurance and investment advice at no additional cost and zero obligations.
- Finding balance and setting boundaries
Too much obsession with your investments or constantly checking your financial accounts isn’t going to benefit you in the long run.
So set yourself boundaries. Tell yourself that things will definitely work out in the end since you are doing everything all right.
Also remember, life insurance can give you a lot of peace of mind
If you are worrying about the financial future of your loved ones, a life insurance policy can always help. Life insurance can help to ease your mind in knowing that the financial health of your family is protected in case the worst happens.
Get a no-obligation life insurance quote. Talk to a Trust Life advisor today.