5 Tips to Ease Financial Stress

Some forms of stress can be good and healthy for you but financial stress is usually peoples least favourite. Some people constantly stress about money and they may never be able to stop that and others may stress due to poor financial management, whichever one you are, these tips may be able to help ease that stress and reaffirm some things you know you should be doing but currently aren’t.
 
 
Tip #1 – Build a cash buffer.
 
 
There is nothing worse than living pay cheque to pay cheque and then having a big expense you haven’t planned for suddenly come and hit you. This can often result in you heading towards the credit card which will only compound your problems. Build up a cash buffer or what you might refer to as a rainy day fund, you might have to sacrifice certain things as you build it but having it there will provide you with more financial security and therefore lower your stress levels.
 
 
Tip #2 – If you can’t afford it, don’t buy it.
 
 
Seems simple, right? With the evolution of buy now, pay later schemes such as afterpay, more and more people are purchasing things they don’t necessarily need just because they feel like they aren’t having to pay for it now. If you’re generally bad with managing your finances then things like afterpay can be a big trap. Even small things like seeing the payment broken down into four smaller amounts can make purchases seem more tempting but you need to stop and realise that you’re still paying the same amount.  This is also the same for putting things onto your credit card and creating big credit card bills that you can’t repay straight away and then you fall into paying high amounts of interest. 
 
 
Tip #3 – Budget and review that you’re sticking to it.
 
 
Take a look at what you’re currently spending, especially look at subscription payments that you mightn’t be using too much such as netflix and stan or see if you can split them with someone. Hopefully this will shock you into seeing how much you’re currently spending on things like food and implore you to look at better habits. Make sure you’re constantly checking what you’re spending so that you’re sticking to the budget you set.
 
 
Tip #4 – Start to invest.
 
 
A key cause of financial stress is people feeling like they are doing nothing and falling behind their peers in terms of their finances. One way to combat that is by actually doing something. Investing doesn’t have to be scary and you don’t have to start with thousands of dollars either. There are plenty of options to start micro investing and reaping the benefits of compound interest. 
 
 
Tip #5 – Pay off bad debts.
 
 
Lingering debts hanging over your head is a major contributor to financial stress, especially credit card debt. If you have debts like that then work hard at eliminating these as soon as possible. The interest rate compounding on the amount that you owe is not good for you financially. If you have other debts and bills that are overdue work hard to budget to get them paid off as soon as possible so you can get to a stage where you have a clean slate. 
 
 
As with any forms of stress, sitting there and not doing anything about it will only make it worse, by starting and slowly chipping away at some of the things above you’ll start to feel better. As always, if you have any questions feel free to message me at zac@pekada.com.au.
 

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Post Contributor:

Zac Masters | Financial Planner @ Pekada

Wealth Collective trading as Pekada (ABN 95 624 612 684), corporate authorised representative (CAR), number 1263725, is authorised to provide financial services on behalf of Communitas Wealth Pty Ltd.

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