Worrying about money and being in financial difficulty can cause all sorts of problems to both your mental and physical health. It can cause sleepless nights, depression, fatigue, stress, and anxiety. You can become withdrawn, overworked, and shut yourself off from the rest of the world. If you have no idea how to get help, you can dig yourself into an even deeper hole. But if you have money troubles, you should do the opposite and talk to those closest to you and also the professionals. Banks, loans, and friends can all be willing to help if they know there is a problem. There is often a solution. But worrying by yourself is not going to help. Keeping calm about your finances and remaining focused and positive is the first step to getting out of money troubles. Today we’re going to take a look at some of the reasons people start worrying about money and how you can ease the stress a little bit.
You Don’t Have A Contingency Fund
Once we start work, we are always told to have a contingency fund for emergencies. These emergencies could be getting laid off from work, a car breaking down or household problems that you hadn’t budgeted for. A contingency fund should be anywhere between three to six months of pay. However, in this day and age, that is easier said than done. A lot of people live hand to mouth, and this can cause undue stress. If you are worried about not having a contingency fund, the best thing you can do is to start putting a plan in place as of today. Don’t beat yourself up about past mistakes. Just make a better plan for the future. To get a contingency fund together, you will have to take a good hard look at your finances and all your incoming and outgoing monies. Then see where you can cut back, It may be that you are paying for television streaming subscriptions that you don’t even use. Or perhaps a gym or club membership that you rarely, if ever, go to. Perhaps you overspend on your grocery shopping, and it may be beneficial to do it online so you can keep track of everything you buy. Could you walk more places instead of using your gas or public transport? Could you cut back on alcohol or special treats just for a while why you save? Once you cut your monthly spend, even by just a little, you can begin to put that money into your nest egg. This should stop all of these feelings of stress. It may not seem like much at first, but it will build up.
You Are Scared Of Taking Out A Loan
Sometimes, the fact of the matter is, that you will need to take out a loan. Don’t beat yourself up about this. The loan world is a big business, and you are clearly not alone in needing one. Just be sure that you are choosing a lender wisely. Loans can be beneficial in the short term if you need money quickly to get you back on the straight and narrow. And as long as you do your research, read all the small print and pay close attention to the interest rate you should be able to cope with the repayments. Always make sure that you have enough money to payback the amount required each month. Otherwise, there will be problems. But loans can be a great way of easing a lot of stress that comes from financial difficulty. See borrowing money as a positive thing that will teach you how to be responsible and will also boost your credit rating. Just remember to be cautious and only borrow as much as you need. Ask for advice from the bank if you are unsure of what the right loan option is for you.
I’m Worried About My Credit Card Payments
If you already have a credit card and are worried about the repayments never seeming to go down, you are not alone. A lot of people are only able to pay back the minimum and therefore it feels like a vicious circle. Well, remember that cutting back on spending we talked about earlier? Before beginning to create your nest egg, the best thing you can do is put all that money into paying off your credit card. If you can double or triple the amount you put in each month, the minimum interest payments will decrease, and you will be able to pay it off a lot more quickly. Another option is to be savvy and shop around for credit card transfers. It may be that you can transfer all the money on your credit card to one that offers no interest or a low APR for the first year. This makes sense if you can then pay the bulk of it back in that year.
I’m Worried I Won’t Have Enough In My Retirement Fund
Worrying about the future can be a big part of the stress when you start thinking about money. Especially if you are not happy with the salary you are on now. But don’t fret too much as there is still time to change course. Work hard and be brave and ask for that salary rise that you deserve. And if you don’t get it? Start looking around for jobs with a higher salary that you know you will excel in. Don’t get stuck in a rut thinking you don’t deserve more money. It may even be that you want to retrain and take a different career path that will earn you more money. Anything is possible! You can take a look at this nifty calculator to see how much you need to save for when you retire. This can help you work out a sensible plan. And don’t forget that when you retire you won’t have as much expenditure either. You are likely to go out less and you won’t have as much credit to pay back or college tuition to pay off. And by then you may also be mortgage free!