Money is not the most important thing in life, and won’t necessarily bring you happiness. Even so, if you have financial commitments and people to look after, trying to make ends meet can be extremely stressful and worrying.
If you want to keep on top of financial stress and get out of a money rut, a few practical steps can help put you on the right track.
In this video, a therapist shares tips for coping with money anxiety.
How to keep on top of financial stress
Plug the holes and fill the gaps
If you dread checking your bank balance before payday, or have direct debits you cannot even identify, it may be time to face the problem head on. Sit down with a pen and paper, or your online banking, and go through every outgoing payment and upcoming bill.
Look out for bills that you might be able to cut down, such as out-of-date phone contracts or broadband deals you could switch. Cancel any payments you do not recognise or services you no longer use. Before long, you may notice money building up that you can put towards other things.
Curb unnecessary spending
Changing your habits and attitude towards money can help your monthly pay go further. Think about what matters to you, what you genuinely need, and what you could go without.
A savings challenge can make cutting back feel like a game. One example is the 1p savings challenge. Simple habits help too, such as writing a shopping list before going to the supermarket.
Save and invest for the future
Building up savings for a rainy day can give you reassurance. With a financial cushion in place, unexpected bills are less likely to leave you in the lurch, and many people find that this alone eases a great deal of worry.
Once you have savings, you may want to think about investing for the future. Some people choose buy-to-let property as a way to earn rental income, although, like any investment, it carries risks and needs careful thought. RWinvest has a range of guides on this if you want to learn more. It is wise to speak to a regulated financial adviser before making big decisions.
Reach out for help
If you feel you have hit a dead end, there is always someone who can help with financial stress and upcoming bills. If you run a small business or are self-employed, an accountant can advise you on bookkeeping and tools such as cloud-based QuickBooks based on desktop as a service technology, which may help you stay on top of your records. Talk to friends and family for support, too.
Looking after your mental health
Money worries and mental health often affect each other. Stress about debt can disturb your sleep and mood, and low mood can make it harder to manage money. In the UK, free, confidential debt advice is available from services such as MoneyHelper, StepChange, and Citizens Advice. If you feel overwhelmed, speak to your GP or call Samaritans on 116 123.
FAQs
- How does financial stress affect mental health? It can cause anxiety, low mood, poor sleep, and tension in relationships.
- What is the first step to tackling money worries? Review your income and outgoings so you know exactly where you stand.
- Where can I get free debt advice in the UK? MoneyHelper, StepChange, and Citizens Advice all offer free, confidential help.
