Have you ever spent a lot of time stressing out about money before?
If so, you’ll know that it’s not a pleasant experience, especially if you have no idea how you’ll get by and make ends meet. If you want to stop stressing out so much about money, you’ll need to make some mindset and lifestyle changes that may not be easy. But, they will be worth it in the end.
Here are 4 guaranteed ways to stop stressing about money and regain confidence in your financial situation.
1. Start Saving
Saving money is one of the best ways to combat financial uncertainty. When you save money, you’re improving your financial stability and making it easier to cover unexpected expenses which could stress you out if you’re not prepared when they pop up.
What most people don’t realize, is that saving money is a habit and you have to prioritize it. Set a goal for how much you want to save and identify what you’re saving for. Then, get into the habit of paying yourself first and consistently putting money away each month.
Even if you can’t contribute a lot starting out, you can start out with a small amount and increase it over time. Having some money stashed away will be better than having none at all. It’s amazing how many Americans can’t even afford a $400 emergency!
2. Control Your Spending
Not being able to control your spending can cause you to stress out about money, especially when you get into the habit of spending more than you earn. Sometimes how much or how little you earn doesn’t matter as much as how you manage it.
Make sure you create a realistic budget you can stick to and avoid making impulse purchases. Before you decide to buy something, ask yourself is it really going to add value to your life. Also think about if you would still want to buy it 48 hours later. Sometimes you might want to walk away and give yourself two days to sleep on it. Then, if you realize two days later that you’re not really thinking about it anymore, you’ll realize that it probably wasn’t a necessity anyway.
Also, consider lowering any expenses that could be cut. When you lower your expenses, you can free up more money to save or use for other financial goals.
3. Consider Trying Out Minimalism
Minimalism is not for everyone. But, the basic concept can help you save a ton of money since you’ll buy and maintain less stuff. With minimalism, the concept is to live well on less. Some minimalists are extreme and have very little in their homes. Others just purge items they no longer need or want, and only hold on to their favorite and most valuable possessions.
There are no super strict rules for becoming a minimalist other than taking action to minimalize your life in terms of your physical, digital, and mental clutter. How you do that is totally up to you.
What I like about minimalism is that it allows you to be grateful for and content with what you already have. This is in contrast to how society teaches us to always want and buy more. Buying a ton of stuff and having a lot of unnecessary expenses in general can really cause you to be stressed out about money all the time. You might even worry about how you will pay for everything.Stop stressing about money with these simple steps. Click To Tweet
4. Start Earning More
Another great way to stop stressing out about money is to focus on earning more. I used to be very stressed out about money as a young adult. But, when I started increasing my income, I had more money to meet my needs so I stressed less.
For many people, earning more money seems like the answer. But, you must realize that this will not be a guaranteed way to remove your money stress if you don’t focus on controlling your spending habits first. If you haven’t controlled your spending habits, you won’t be able to properly manage the extra money you earn so you can become more stable and meet your financial goals.
You want to use the extra money you earn wisely and strategically so you can get ahead. You might want to use it to increase your savings rate, pay a bill, or accelerate your debt payoff.
To start earning more money, you can do a number of things. You can start by asking your current employer for a raise. If that’s not possible, consider getting a second part-time job or establishing a side hustle.
You can work somewhere locally that doesn’t require too many hours from you, or you can work flexible gigs on the side, or even work from home.
Summer is coming up, so parents may need babysitting help. Also, pet owners will be taking vacations and may need a pet sitter or dog walker. You can also mow lawns and do light landscaping, sell things online, freelance online, start driving with Uber, or tutor others. The list literally goes on and on.
When it comes to finding the right side hustle, focus on your skills and the type of work you’d like to do.
The Bottom Line
Stressing out about money can have a negative impact on your life long term. It’s important to focus on controlling and improving your spending and money management habits followed by increasing your income if you want to feel more financially secure and stable in the future.
Have you ever stressed out about money before for an extended period of time? How did you improve your situation so you could stop stressing about money?