Money is one of the most common causes of stress on Aussies right now. A recent survey showed that up to 40% of us believe we will have to work longer due to the financial effects of COVID-19. Now, that’s stressful!
Pandemic aside, the day to day stress of managing budgets, repayments and bills has always been a common cause of stress. Like any other major cause of stress, financial problems can impact your mental and physical health, relationships, and happiness.
So how can you reduce money stress?
Assess your finances
When you are completely aware of your financial situation, you will feel more confident in your decision making, minimising potential money stress.
Look at how much debt you have, your monthly expenses and your income to get a true assessment of your financials. It’s easy to forget those quarterly bills or annual expenditures but if you go into detail, you’ll save yourself time and stress in the long run.
Start mapping out your income against your expenses and how your cash flow is tracking. Decide whether you need to cut back on any expenses to make life more comfortable.
Having the full picture gives you the power to make informed decisions and means that you can stress less about the unknown.
Create an emergency fund
Putting some money aside in an emergency fund will give you breathing room when things don’t go to plan. This will mean that you won’t have the added stress of finding funds when unexpected expenses arise such as a medical emergency or car damage.
Start a new bank account and start transferring what you can afford to, each month. When the time comes for you to withdraw from the emergency fund, hopefully, you’ll have enough saved in there to deal with the problem at hand and minimise your stress.
Regular money meetings
By regularly reviewing your finances, you’ll have the power to be in control and make decisions to improve your financial situation.
Try sitting down once a month to go through your income and expenses, review your emergency fund and what else you can be doing to protect yourself financially.
If you live with a partner, get them involved too so that money becomes an important family conversation. If you’re both on the same page, you’re going to minimise potential stress caused by conflicting spending or saving habits.
Talk to an expert
If you have specific worries that are causing you stress, such as saving for retirement or setting up a Will, our team of experts can help you create a plan to protect your financial wellbeing.
Head to our website to learn more or give us a call on 1300 131 809.