Tips to Make Money Less Stressful
If you’ve ever wondered how you can stop stressing about money, you’re not alone. The constant stress about finances can lead to a life filled with worry and can even strain relationships. Managing money can be stressful at times, but money doesn’t have to run your life-this guide, Tips to Make Money Less Stressful, will teach you some small things you can start doing to take more control of your money.
1. Budget
Budgeting can be one of the simplest yet most powerful ways to lower your stress level when it comes to finances.
To start, record all of your income and all of your expenses. Though there are apps and online tools you can use to do this, simply writing it all down on paper or on your device somewhere can also be effective.
Income is the money that is coming in. This can be from your job, side gigs, or gifts. An Expense is money that leaves you. There are fixed expenses, like an auto loan payment or a life insurance payment, and variable expenses, like groceries or shopping.
As you write out what each income and expense is, you may be surprised at how much you are spending or how much you are saving. Maybe you realize some things you need to cut out in life, or that you need to start making some more money. Or, maybe you see that you can put a lot more into savings than you are.
Bottom line-writing things out can be powerful and can teach you a lot about yourself and how you manage money.
To learn more about how to create a budget, read this article.
2. Set Goals
Identify what is stressing you out the most about your financial state. Is it hard to make rent every month? Is your car payment way too high? There are likely things you can do for many expenses that can help lower it or minimize the stress.
For example, if you notice rent is becoming less and less affordable, consider moving if that is possible. Though moving can be a hassle, it can pay off in the long run to have more money by being a little more uncomfortable in the short-term.
Or, if you notice that you spend hundreds of dollars on take-out each month, consider cooking more at home. Start meal planning; find some meals that are affordable and enjoyable and start relying on those instead of fast-food. This can save hundreds of dollars a month. Bonus-you’ll likely feel healthier too!
Whatever it might be for you, set goals based on the things that are stressing you out the most, and then adjust your budget.
It might be hard at first, but you can do it!
3. Slowly Start Saving
Now that you know where you are financially, start saving.
Saving money is important for many reasons, and one of those is having a safety net. You should always save up enough to have an emergency fund, which is money set aside for unexpected expenses or hard times in life. Typically, you should have enough money in your emergency fund to cover 3-6 month’s worth of living expenses, but it just depends on your situation.
Besides having an emergency fund, savings is important for your future. Maybe you’re in your early 20’s and want to start saving for buying your first home. Or maybe you are 30 and realize you don’t have a retirement fund yet. Whatever stage of life you are at, saving is crucial to financial stability.
If you don’t know where to start, use our savings goals tool!
4. Be the Master of Your Money
So far, this guide has taught you the importance of budgeting, setting goals, and saving. These are all crucial steps and tips to make money less stressful and becoming more financially confident and stable.
In addition to this, here are some tips and tricks you can do to help you become the master of your money.
- Start Slow. Worrying about everything at once is overwhelming and is often unhelpful. Write out a plan that follows a progression of steps instead of trying to change everything at once.
- Educate Yourself. Read books, take classes, or talk to experts about finances. Learn all you can about different financial options and aspects. Understanding money better means controlling it better. UCCU is partnered with Utah Valley University, an open enrollment university for anyone looking to further their education.
- Invest. A good way to become a master of your money is to let your money work for you! There are many different things you can invest in, including stocks, real estate, or mutual funds.
- Pay Yourself. Many people have a category in their budget called “mad money” or something similar. This is money specifically for your spontaneous spending on things you like-like a soda run or a spontaneous movie night out with your friends. This can be very effective to have when you are married and each of you has a “mad money” category because you both have opportunities to spend money without the other getting worried or angry.
5. Keep Trying
Don’t stress, making money less stressful is hard. It can still sometimes be hard to feel confident about your situation and it can be hard to not get down on yourself. But falling into a cycle of worry, doubt, and discouragement means you are letting money rule your thoughts, actions, and life.
Don’t hesitate to get professional help if you need it. Also, don’t give up! If one thing doesn’t work for you, try another. If you keep trying, you will become a master of your money in no time, and you’ll notice that you are less worried about money than ever before.
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