Financial anxiety is a big problem for many adults. You are never truly comfortable until you can meet all your financial obligations without heart palpitations and not getting any shut eyes at night. Freedom from financial anxiety is the only way you can concentrate on the important things in life: comfort and actualizing your life goals. How can you get on top of your finances today and ditch the anxiety?
Create a carefully planned budget
There is no way you will avoid making the same mistakes with your finances if you do not understand what these mistakes are in the first place. A proper budget will make it difficult to get sucked into impulse spending while allowing you to ensure increased efficiency with expenditure.
Increase your incomings
This is one of the best ways to settle your anxiety to a large extent. Analyse your spending daily to work out exactly how much you need to improve your financial condition. When you have arrived at a sum, explore different ways to bring this amount in. Consider asking for a raise, requesting a promotion, taking a second job or starting a side-business.
Take Advantage of Employee Benefits
If you are an employee at a big corporation, you may be due certain perks that can save you money such as transportation, housing, shopping discounts, retirement savings schemes and more. Find out if you are qualified for any such benefits and take full advantage. How much do you think you would save if you save just 50% of your transportation costs each month for example?
Put Away Something
Apart from making contributions to your retirement pension, you need to put away some emergency money. There is a level of mental satisfaction that comes with knowing that you have some emergency funds to dip into, in the event of the worst scenario happening. You will be able to sleep better! This is also referred to as “paying yourself first”. The sum to save is entirely up to you but aim for at least 10% of your monthly income. Alternatively, you should save an hour’s wages every day. Be mindful of where you invest the savings. Make sure you are getting the best possible deal.
Cut Back on Credit Spending
Many people faced with financial anxiety today will be better off if they could go back to the past and undo their credit behaviour. Does that describe you? You can still do something. Do not take on more credit card debt. Many financial houses are willing to give you debit cards that will ensure you are only spending what you have. If you know you can only spend a certain amount (sum in the debit account) you will be more inclined to ensuring accountability with your expenditure each month. This will improve your overall financial health. It will also help if you understand the ins-and-outs of your debit card.
Do you know that it is possible to set your finances to run hands free? Go to your bank and set up controls to deduct money for your pensions, money for the special savings as we mentioned above and money that goes to offsetting all vital bills. This way, you will only be left with true disposable income each month. This sum is what your budget should be based on.