Dealing with money worries in three easy steps
Feeling worried about money? You’re not alone. In fact, it seems more and more of us, particularly younger people, are feeling stressed about our finances.
However, making simple changes to your mindset and lifestyle can make a big difference when it comes to tackling your money worries. With this in mind, here’s our three-step guide to dealing with financial stress and making a clean start with your finances.
Step 1: Look after yourself
Tackling money worries can be stressful, and it’s easy to forget about the most important thing: yourself and your health. Making sure you are keeping well mentally and physically is the first step to getting back on the right path with your finances.
Eating well
A well-balanced diet can make you feel physically stronger, and is also great for your mental wellbeing. Taking this initial step towards creating a better you will spur you on to get on the right track in all aspects of life.
We all know the cost of eating healthily can be high at times, but it is possible to save money and eat well. Frozen fruit and veg is a great alternative to fresh produce, and it’s almost always cheaper too. Alternatively, ugly veg is also a growing trend and has become increasingly popular with those shopping on a budget. It’s cheaper, fresh and tastes just as good!
Leading a busy lifestyle can encourage you to slack on cooking when at home, and reaching for the junk food and takeaways can be all too tempting when you’re feeling under pressure. But it’s important to think of takeaways as an expensive luxury that can be avoided. Cooking more at home and preparing meals in bulk for the upcoming week will not only ensure you’re eating more healthily, but it will help you waste less and reduce expenditure on unnecessary food.
Living well
Exercise combined with a balanced diet will do wonders for your well-being if you’re feeling down. Even moderate exercise releases endorphins, which are chemicals in your brain that lighten your mood and help you feel accomplished.
If you’re feeling stressed out, it’s important to make time in the week to do things that boost your happiness! Meeting up with family and friends, spending time outdoors and keeping active are all great for helping you stay happy, healthy and focused on the more important things in life.
Sleeping well
It’s essential for an adult to get around 7-8 hours of sleep every night to ensure the mind and body are fully rested. So, if money worries are keeping you awake at night, then try and become more active. Not only is exercise great for enhancing your mood, but it can help you sleep better and even boost your energy levels.
Step 2: Focus on things you can control
Taking back control of your finances is a daunting prospect, especially if you’re the type of person that wants to avoid numbers at all costs! But there’s plenty of help available, including useful apps and spreadsheets which can help you record your spending habits. There are also free money tracking websites such as www.mint.com, which can give you a helping hand by logging your income and outgoings.
This short four-step process can help you get to grips with controlling your finances:
1. Set goals for yourself
Set achievable goals for yourself for the month. Sticking to a set routine can be hard due to the many obstacles that life can throw at us, but if you have a set goal, you can track your progress and make up for any losses in the following month.
2. Monitor your outgoings
Check all bills on a weekly or monthly basis and monitor your progress. Make sure you’re in the black each month, as going into debt is a common cause of stress.
3. Clear your debts
Create a plan to pay off your debts and stick to it. Once you’ve identified where you can make savings, you’ll be able to calculate how long before your debts are cleared, and this should help spur you on with your budgeting.
4. Keep it up!
Once you’re more in control of your finances, you should feel more at ease with your spending. Keeping up a process like this will also help prevent your spending spiralling out of control in the future.
Step 3: Strengthen your support system
If you’re feeling stressed about your finances, it’s easy to become isolated and feel like you have nowhere to turn. Honesty is always the best policy and gaining support from your family and friends can help to ease some of your concerns.
The importance of working with your partner to help deal with financial issues is fundamental in making progress with your money worries, and being candid when approaching money discussions and planning short and long-term goals can save a lot of aggravation further down the line. Find the time to discuss the topic of money when you’re both calm and relaxed and ready to face the problem together.
It’s easy to feel pressured to spend while socialising, and if you’re concerned your spending has spiralled out of control, you may feel like it’s easier to just take a rain check when an invite for dinner or drinks comes your way. However, spending time with friends and family is vital if you’re feeling down, and you shouldn’t be afraid to suggest cheaper alternatives for social occasions. Remember, it’s the company that counts, and your friends should be accepting of your new budgeting lifestyle. And you never know, they may even appreciate saving some cash!
Taking back control won’t happen overnight, but the road to money security is just around the corner if you’re ready to make small changes to your lifestyle and adopt a can-do attitude to managing your spending. If you feel like you need someone to turn to, then don’t forget that the Money Advice service are there to offer free and impartial advice around dealing with debt.
