We all go through different types of stress daily, and it’s almost inevitable. Every person trying to meet up or cater for their personal or family needs must have gone through one type of stress or another, especially financial stress as it concerns money. Nowadays, money is the motivation factor for most people; having it in abundance is seen as an accomplishment. People seek different ways to get it either, genuinely or otherwise. However, to fully understand this topic, we need to know what financial stress means.
What does financial stress mean?
Financial stress refers to having emotional tension as regards money. Everybody goes through financial stress, but it can become serious if your money problems make you worry too much, such that it affects your mental health and even physical health. Financial stress occurs more in low-income homes. For example, not earning enough money to cater to basic needs can cause financial stress.
Causes of financial stress
Financial problems that seem insurmountable can cause stress. Different causes of financial stress include:
- Losing your job or being retrenched
- Long term unemployment
- Being unable to get full-time work
- Inability to pay your bills or deal with the increasing costs of living.
- Debts that you cannot payback
How to cope with financial stress
Financial stress is normal only if it doesn’t mess with your mental health. People go through more financial problems than others; it’s how you work through it that matters. Ways to cope with financial stress include:
Talk to someone
You could be having a huge debt that you cannot pay, and it is eating you up as the day goes by. You wonder whether you will be able to cross this bridge in no time. You’re slowly running into depression because of it, and that’s why you need to talk to someone. There’s a saying that a problem shared is a problem solved. Talking to someone helps lift the burden you feel about the situation. It could be a family member or a very close friend.
Take stock of your finances.
Taking stock of your finances helps you stay in charge of your finance. For example, if you’re in debt, the first step is acknowledging that there is a problem. Write down all your debts on paper. This gives you a headway in trying to eliminate the problem giving you financial stress. Outlining the specific problem helps you know the particular area to tackle and identify the root cause.
Make a plan and stick to it.
After outlining it, the next step will be to make necessary plans to solve the particular issue. It is not enough to outline the issue without making plans on how to solve the financial problem. You could involve someone to help you at this stage or do it by yourself. The main goal is to develop a workable plan that would enable you to solve your financial problem; debt, accumulated bill payments, etc. These plans could include living below, your means, spending less and saving more, seek for financial assistance, etc.
Create monthly budget
A monthly budget can help solve some of your money issues. By having a monthly budget, you know your financial capacity and stick to it. Here you’re trying as much as possible to live below your income to get extra money to settle outstanding bills bit by bit. You can also decide to choose someone for accountability’s sake to make sure you’re staying right on track. See how to create a personal budget.
In the end…
Financial stress is inevitable but is not unsolvable. Being financially literate is one way to tackle financial problems, which in turn will prevent financial stress. It is pertinent to have a plan for any cash inflow; so we are not running into debts or any financial casualty. Have you downloaded the dodopay app? You should.