Let’s face it. We can’t go a day without stressing over our finances. Whether it’s about staying within our budget, paying bills, or managing debt, we can’t help but lose sleep over money matters. However, all hope is not lost. Here are some steps you can take to keep your sanity and prevent financial stress from overwhelming you.
Plan for major purchases. If you see something you absolutely like and it’s equally necessary that you purchase it yet costs a fortune, don’t burst into tears just yet. Don’t take out your credit card either. For all major purchases, plan. Ask yourself, what can you do to afford it without putting a strain on your budget? Your best choice is to save up for your object of desire. There is value in delayed gratification. Who knows? That new washing machine or stove you’ve been eyeing could be marked down by as much as 20% during the weeks you’ve been saving up.
Create an emergency fund. No matter how hard we try to stick to a shoestring budget, circumstances arise that force us to spend a tad more. Rather than beat yourself up for spending hundreds of pesos more than your allotted budget on groceries, create an emergency fund that you can dip into once the need arises. Say, you need to spend on repairs for your sink. Having an emergency fund will mean you have an amount set aside for emergencies like these, hence limiting the need for you to take out extra cash.
Keep track of your expenses. More than following the envelope system and sticking to your budget, proper finance management includes keeping track of where your money goes. Make sure you note every single purchase, however little, and keep all receipts for future review. This way, you won’t be left wondering whether you’ll make ends meet. You’re less likely to be anxious if you’re constantly updated on the status of your finances.
Appreciate the here and now. Stop comparing your life to others. Keeping up with the lavish lifestyles of those around you is an ineffective way to make friends. Instead of trying to achieve a certain level of luxury in your life, be thankful for what you already have. This might sound cliché but you should concentrate on the things that money can’t buy. Once you do, you’ll instantly feel richer.
Manage your debt. Debt is one of the biggest causes of stress. But don’t mistake debt from loans; loans are applied by those who need to fulfill pressing needs such as repairs for their homes and tuition for their children while debt is when a person is has difficulty paying the loans he has taken. Everyone has debt but this doesn’t mean debt should govern your everyday life.The best way to gain control over your debt is to list them all down alongside possible modes of payment. Remind yourself that paying off your debt will take time but remember to be thankful for every progress you make, however little they may seem.
Your life should not be eaten up by worries. Instead of stressing over money, muster the strength and courage to take over your finances and not let them overwhelm you. Breathe. You’ll easily get out of any financial pickle if you’re not badgering your mind with fears. How do you stay sane in handling your finances? Share them with us in the comments.