More than 75% of Brits live under financial stress, struggling to find out an effective solution to be on top of their expenses. Money has become an unwanted subject to worry about due to the rising cost of living, taking a toll on the mental health of people.
The recent outbreak of COVID19 has worsened the situation. Most of the people have lost their jobs and struggling to keep their heads above water. Economic conditions are not expected to recuperate until the next two to three years, and this has raised the alarm bells.
If you want to keep your mental health good, you need to deal with money stress as both of them are linked to each other, and the best way to get out of endless swirl moving inside you is to open up the conversation about money. The most debilitating issue to deal with is debt. Loss of job, separation and death are some of the factors that leave you alone to deal with your financial obligations.
Financial stress is not just limited to these factors. Some people suffer from it because they are badly off, some face monetary problems because of medical expenses, and some face it as they cannot make the right financial decision. Well, whatever the reason, you cannot rake up what has happened. Instead, you need to figure out a solution. Here is what you should do.
If it is challenging to be on top of your expenses, now is the time to get organised. You should get an idea of the money you are spending every day. You should have a record of even a tiny expenditure.
The best way to stay organised is budgeting. If it seems hectic to make a monthly budget, you can start with a weekly budget. Set a spending limit for each week and make sure that you do not spend beyond that. When you are running out of money, it becomes essential to put restrictions on your spending.
A good rule of thumb says that you should spend money on essential things like utilities, bills, mortgage payments, and the like. Try to avoid spending as long as you can put it off. For instance, you are looking to buy a new cellphone just because you are bored with it or it looks old. Even though it looks old, you should not plan to buy a new mobile phone if it is up and running.
You can spend what you save on this purchase on repaying your debts or any other essential expenses. Find out how you can make do with available funds. If you stay organised, it can give you a sense of accomplishment.
Get financial advice
The most complicated thing to handle when you are running out of money is debt. When you lose your job, it can be hard to keep up with repayments, but do not bury your head in the sand. Instead, talk to your lenders and inform them of your financial problems before the instalment goes overdue.
Keeping your lenders in loop about your financial condition can help you get a new repayment plan. If it seems like you are falling in debt, your lenders can also suggest a debt management plan or debt consolidation loans with bad credit.
You should also discuss the subject with your family. If one of your family members is prodigal, let them know the real picture of your finances and tell them what problems you may reckon with down the road if they do not change their habits.
Financial behaviour is one of the significant factors you often overlook when you are in the tight spot. Analyse your spending behaviour, take stock of where you cut back on and stick to your financial goals.
Be committed to your financial goals
It is a must to set a financial goal if you want to improve your condition in the future. As life can throw a curveball, make sure that you do not repeat the same mistakes as your financial situation improves. Be honest with your commitments.
For instance, if you are setting aside 20% of your income toward retirement saving funds, make sure that you do not compromise with it just because of temptation to non-essential things, like buying a luxurious car.
Being financially sound can help you withstand unexpected downturns, and for this, you must have a good income source. Of course, you need to change your financial behaviour, but you also need to look for ways to grow your income.
As long as you have money to make ends meet and you sensibly spend cash, you can avoid being falling in debt. To keep money stress at bay, you need to adopt good financial behaviour. Start changing your habits today for a better financial condition.