Global challenges, pandemics, and inflation are increasingly taking a toll on Americans’ financial independence. The Planning & Progress study (2022) run by Northwestern Mutual showed that the average amount of savings has decreased by 15% over the past year, causing many households to endure the pressure of financial stress. If you’re also experiencing a problem with spending money, we know you’re not alone. This article will tell you how to relieve money stress and name effective ways to save money each month.
Understanding Financial Stress
A light purse is a heavy curse, isn’t it? Indeed, the long-lasting “how to save money” issue may significantly impair your mental and physical health. Muscle tension, depression, anxiety, and a sense of isolation are the most common financial stress symptoms. In the long term, money anxiety increases the risk of chronic diseases and worsens your general well-being.
Financial stress can both be caused by unforeseen events (layoff, divorce, health issues) or the pressure of routine obligations (mortgage, rent, student loan). Note those who live from paycheck to paycheck are not the only victims of money insecurity. Even wealthy households can face it. The May survey conducted by LendingClub found that two-thirds of Americans have experienced budget disruption at least once in the past three years.
How to cope with financial stress:
Undoubtedly, money anxiety badly affects most aspects of life. The best way to get rid of it is to get the balance in order. Below we’ve listed the best practices to help with money problem:
Take Steps to Increase Your Income
If your current earnings do not cover the basics, increase the household budget with extra sources of income. For example, you can take on more hours at work or pursue a freelance project. Don’t undertake more than you can handle. Your hobby monetization can become a healthy alternative to overtime workloads. Sell the homemade bakery, walk dogs, teach musical instruments – make money from anything that excites you.
Prioritize Essential Bills First
Conduct an inventory of your spending. What are essential bills, and what expenses can be cut? Set aside an untouchable budget for utility services, loans, and other mandatory bills. Check your paid subscriptions, shopping, and leisure expenses, and cut the unnecessaries as much as possible. This approach will help you save money without significant habit changes.
Try to stick to a consistent savings plan
Initiate a so-called financial safety bag in case of sudden disruptions. Set a minimum monthly amount to save without hitting your wallet. Try to follow a plan and don’t skip deductions. Making these contributions regularly will help relieve financial stress and make you feel more confident when facing new challenges.
Track your money-saving progress
Keep a budget, set financial plans, and follow your progress with automatic trackers. You’ll always know the available money amount, the sum saved, your net worth, and expenses. Watch your financial habits change and celebrate your monthly achievements.
If you still don’t have an online budgeter, try managing your money with Saldo Finance. It has an intuitive interface and many useful features for household budget keeping. Connect multiple accounts from any bank registered in the U.S., set monthly limits, and track your revenue in real-time. The app also categorizes your spending to better understand which payments to optimize.
Overcoming financial stress may seem very difficult at first. Don’t worry, be patient and stick to your goal. Remember that the big things have small beginnings. Follow our tips to get back on your feet quickly and painlessly.