Financial stress can keep you up at night, as you could be worried about growing debt, the expense of raising children, or a low income. It might, therefore, feel like an endless battle between paying various bills and building your savings pot.
However, there are various ways to maintain a firm grip of your cashflow, so you can eliminate money worries in the near future. Read the four strategies for combating financial stress.
1. Plan and Stick to a Budget
Many people living with money concerns are often afraid to create a budget, as they will not want to face the reality of their financial circumstances. However, it could be a helpful tool for organizing your cashflow and avoiding substantial debt.
It ultimately helps to identify exactly how much money is flowing in and out of your bank account every day. Plus, it could help you to identify where you are unnecessarily spending money each month.
For example, by reviewing your bank statements, you could realize you are spending far too much money on takeout, chain cups of coffee or store-bought sandwiches. You can then make the appropriate changes to your lifestyle.
2. Create a Financial Safety Net
Everyone should have a financial safety net, which will ensure they have money to spare to pay an unexpected bill, replace a broken appliance or make an essential repair on a vehicle.
For this reason, you should aim to set aside a fixed amount of your income into a savings account each month, so you will have the money to fall back on should you need it. If, however, you are facing an unexpected expense and don’t have a healthy savings fund to fall back on, you always have the option to turn to Cashlady for a small, short-term loan.
3. ReviewYour Outgoings
Make it your mission every month to review your outgoings to identify the different ways you can cut costs and boost your cashflow. For example, you could:
- Switch to a more affordable energy supplier
- Cancel your gym membership
- Lower a cable package
- Cut down on takeout and restaurant meals
- Lower your fuel consumption
- Browse the market for a better insurance rate
- Buy used items over new
A proactive approach to your finances could help you to save hundreds or even thousands of dollars per year.
4. Pay Off Your Debts ASAP
Living with debt can take its toll on both your mental and physical health. It cannot only keep you up at night, but it can destroy relationships, impact your social life, and can negatively affect your emotional wellbeing. It is, therefore, important to find ways to decrease your debt repayments as soon as possible. For example, call a lender to negotiate a lower interest rate, or you could consolidate your existing debts into one affordable repayment. You also should make overpayments when possible and aim to pay the highest interest debts first, which could save you a substantial sum over time.