With COVID-19 ravaging the global economy, many are facing financial difficulties or getting caught up in a cycle of debt. Are you losing sleep because of your financial state?
In this post, we will share with you several tips on how to cope with financial stress. Whatever your financial anxiety is, these tips will teach you the ways of breaking the vicious cycle.
Read on to find out more.
1. Make a Budget
Budgeting is one of the most effective strategies to prevent yourself from struggling with finances. It enables you to spend your money wisely.
Write down your income and subtract your expenses. Cut out any unnecessary spending and implement a budget to follow strictly every month.
Track your spending throughout the month, and at the end of each month, review your spending to determine if you have stuck to your budget.
2. Start Cooking
Eating out is one way to spend a lot of money and incur financial stress. Doling out cash to a restaurant once in a blue moon is not discouraged, but doing it regularly can be bad for your financial strength.
Start cooking your meals at home. Cooking at home is cheaper than eating out. You can even take your homecooked meals to work.
3. Stop Using Credit Cards
You may be having financial challenges because you lean heavily on credit cards. Credit cards, including credit cards instalment plans in Malaysia, often come with high interest rates.
Moreover, expensive late charges and annual fees can add to your financial burden. The more you use your credit cards, the higher the debt you are likely to incur.
If you learn to stop depending on credit cards, you will be more likely to spend according to your budget and avoid incurring debt.
Instead, opt for a debit card instalment plan with zero interest or Buy Now Pay Later (BNPL) when buying. Split your purchases into affordable monthly instalments and enjoy zero interest to pay.
4. Start Saving
Saving money is one of the most effective approaches that enables you to grow your wealth. To increase your financial capacity, start saving money in an interest-generating bank account and deposit savings regularly.
Additionally, saving allows you to have an emergency fund, which in turn, reduces financial stress.
5. Find a Source of Passive Income
Putting all your eggs in one basket is not a wise approach to overcome financial issues. When a source of income seems not to be bringing in steady cash, you can maintain financial stability through other avenues.
Finding part-time jobs is a good way to make money on the side. As the gig economy continues to grow, consider accepting part-time gigs such as writing, graphic design or becoming a virtual assistant.
In an era when job security is often not guaranteed, upskilling is a sure-fire way to enhance your chances of landing lucrative jobs when retrenchment occurs.
Ensure that the skills you are learning are relevant and lucrative to help you make more money. For instance, as online business is all the hype now, consider taking up skills such as digital marketing, social media management and data analytics.
With upskilling, you might need to spend extra money taking up courses but it’s completely worth it.
7. Get Insurance
Insurance is a wise strategy to guard your investments.
It protects you from uncertainties that may befall your portfolios.
If one of your investments suffers uncertainty, your insurance provider will help you get them back on track.
8. Get Professional Advice
Several professional advisors are ready to offer you financial advice.
They counsel you on managing your debt, maintaining a good credit score, and sticking to your budget.
Reaching out to them is a wise move to avoid financial problems.
9. Enhance Your Retirement Savings
Expenses in your golden years will likely be expensive. If you do not want to be in debt during this period of your life, saving money now is a good strategy to adopt. As you age and get closer to retirement, your savings should increase.
10. Set Realistic Financial Goals
As you set financial goals, ensure that they are realistic. Unrealistic goals can discourage you from putting in the work to become financially buoyant. Set goals that will encourage you.
To make your goals more manageable, consider setting both short-term and long term goals. Celebrating every single milestone is also a good way to stay motivated for your goals.
You Control Your Money
There you have it! We hope these tips can help you deal with financial anxiety effectively. Sticking to these tips is not easy, and you need self-discipline and determination especially when it comes to controlling your finances.
But the outcome will be worthwhile. Imagine freeing yourself of the financial stress while spending within your means. You will enjoy better mental health and total peace of mind.