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According to a recent study by American Psychological Association (APA), money serves as one of the major stressors among adults. At some point, almost everyone around the world has experienced stress due to financial struggles. Money issues that lead to stress can potentially take a huge toll on one’s mental health and it can also impact our physical health, self-esteem, and the relationship we have with the people around us. This is why it is essential to understand how to address financial stress in a proper and immediate manner. Whether your financial anxiety roots from your upcoming rent, a huge debt, or a sudden major expense, what you need to remember is that there are still ways to get through these tough times and you can still achieve financial freedom. With that said, here are 5 helpful tips to help you overcome financial distress.
First things first:
General Stress Management
Functioning through anxiety will just lead you to make poorer decisions. As such, before you can address your financial struggles with a sound mind, it is important to take a break and clear your head first. Some relaxation activities you might find helpful include yoga, listening to music, reading self-help books, and taking a short walk outside. With the peaceful mind that these activities may bring you, you will be able to handle financial challenges more efficiently.
Address one thing at a time
Looking at all your pending bills might get a little overwhelming, so taking things one step at a time might make your progress easier. You can start with installing a mobile app that will help you keep track of all your finances. After that, list all your existing debts and all incoming bills you need to pay together with all your expected inflows. This process might feel difficult but being able to see your financial situation in one look can help you assess how to make the right adjustments moving forward.
Look for side hustles
If you feel like giving up your regular $5 coffee won’t be enough to solve your financial struggles, then another option would be to consider applying for side hustles that will boost your income. You can make use of your talent in baking and sell pastries to your neighbors or you can choose to apply for a part-time job, just make sure that your sideline won’t cause you additional worries.
Set up an emergency fund
After you organize your spending patterns and look for additional ways to get income, you need to consider building an emergency fund. It is advisable to prioritize paying off your debts first and setting up a savings fund once you have already settled your budget. Contributing to your emergency funds will give you a sense of security and will prepare you for major unexpected expenses such as medical emergencies and job loss.
Get professional help
If your financial anxiety has been significantly disrupting other aspects of your everyday life, then it is a good idea to seek professional help through financial advisers or financial psychologists. Most places have organizations that offer free financial counseling that will teach you basic money management and will guide you in achieving your financial goals. Remember that acknowledging your problem is already a huge step and asking for help is not a sign of weakness.