It may be hard to get rid of financial stress entirely, but there are many ways you can reduce that stress and take steps toward achieving your financial goals. Here are five tips to alleviate common sources of financial stress, paving the way for a happier, worry-free future.
1. Build an emergency fund to cover unexpected bills.
An emergency fund is an easy way to combat the financial stress that comes with surprise bills or bills that are higher than you expected.
Some of these costs are tough to plan for: medical bills, unexpected job losses, car trouble that results in expensive repairs. But you can create an emergency fund to prepare yourself if and when these expenses do arise.
Even if this fund starts out small, don’t worry—every little bit can make a huge difference. Over time, you can continue building up these savings to create even more of a financial cushion.
2. Use autopay to pay your bills on time and avoid late fees.
Have trouble tracking bills and making on-time payments? Autopay options are an easy way to simplify your bill management and avoid the fees and penalties that come with missed and late payments.
Schedule payments according to each bill’s due date every month, and you’ll enjoy all the benefits that come with on-time payments, including lower bills and a potential boost to your credit score.
3. Trust in your budget.
Budgets aren’t only a tool for keeping spending under control. They’re also a guide to take the stress out of your spending.
If you aren’t already managing your spending with a budget, take time to create one. This will give you an easy framework to monitor your spending and improve your decision-making over time.
By tracking spending across certain categories, you can monitor your spending and enjoy stress-free spending as long as you’re staying within your limits. For example, let’s say you’re shopping in a store and you want to buy a dress that costs $80. You love it, but you aren’t used to spending that much on a dress, and you’re worried about the financial consequences of making such a big purchase.
If you have a budget, you can consult it to decide how much you’re able to spend on shopping. If you have more than $80 available in your shopping budget for that month, you can make a guilt-free decision to purchase the dress, and simply be mindful of additional shopping purchases for the rest of that month.
4. Discuss retirement savings with a financial advisor.
Sometimes financial stress comes from not knowing what lies ahead. It can be difficult to project your savings out into the future, especially when trying to calculate how much you might need in your retirement years.
By meeting with a financial advisor, you can understand exactly where your savings and retirement goals stand. Even if you need to make changes to improve your financial outlook, you can rest assured that you have a plan to improve your future financial security.
If you’d like to discuss your finances with an expert, contact FSCB to get in touch with a member of our team.
5. Consider a life insurance policy for greater peace of mind.
If you have a family to take care of, you probably worry about what would happen to them if you died unexpectedly. Losing an income-earning adult creates financial challenges for many families. One way to address this source of stress is by purchasing a life insurance policy.
With a life insurance policy, you can choose the amount of money your family will receive in the event of your passing. Before you purchase this on your own, find out if your employer offers life insurance policy options, which can be paid for through deductions on your paycheck.
If financial stress is bogging you down, there are steps you can take to address the root causes of this stress. With a solid financial plan in place, you can make money decisions with confidence and achieve other important financial goals.