How To Deal With Financial Stress

Do you get that feeling of dread every time you check your bank account or check the mail for bills? It could be a sign that you’re financially stressed. It’s not all bad. A little bit of stress is ok, as long as you can manage it effectively. Here are some of our tips to help you deal with financial stress:

1. Find out what’s causing the financial stress.

It helps to get to the root of the problem right away, although it may be easier said than done since there may be layers causing your financial stress. Let’s say you’re having trouble paying your mortgage because your children’s education is taking up a huge bulk of your finances. This stress may be caused because of lack of organisation, are your big payments coming out the same week or before you get paid?

To get to the bottom of your problem, it would help to check your budget. This will help you know exactly where your money is going and when it is coming out. From there you’ll see that there are expenses you may be able to do away with, or at least reduce.

2. Speak to a finance broker.

Another way to deal with financial stress is to get professional help. A finance broker can give you an overall view of your finances, assess what areas you can work on and organise your finances to become a bit more manageable for you.

3. Consolidate your debts.

If you’re having trouble with numerous debts that you can no longer manage, then it may be a good idea to consolidate them into one debt. Debt consolidation may also be an ideal solution if you want to get rid of those debts with high interest and/or high monthly repayments.

Keep in mind, though, that debt consolidation is just part of the solution. You also have to deal with the issues that led you to accumulate debts in the first place. So, if it’s caused, for example, by having too many credit cards, then you’ll have to trim them down to just one or two. In decisions like this, your finance broker will once again prove to be important.

4. Reduce your debt.

Debt is the primary reason why people get financially stressed. Debt consolidation is just one way you can tackle your debt problem, however you may also have to tighten your belt by putting more of your monthly budget towards your debt repayments. It’s a tough decision to make, but if it helps you to become debt-free sooner, then it’s all worth it.

5. Stick to a budget.

Digging deeper into your financial stress, you’ll likely discover that you’re overspending month after month, causing a build up of debt over time. This leaves you with little to no savings so that when an emergency happens, you suddenly find yourself struggling to find money to deal with that emergency. It’s therefore important that you create a budget and stick to it as much as possible. Remember to leave room for your savings because you’ll never know when that washing machine may break or your hot water system dies.

Remember, it’s normal to feel stressed (financially or otherwise) occasionally. The key to dealing with it is to feel in control of your financial situation and know what steps to take to get on top of your debts.

If you would like to speak to a finance broker regarding your finances or would like to know how you can consolidate your debts, speak to one of our Launch Finance brokers today and watch your financial stress fade away.