10 months ago
10 months ago
10 months ago
10 months ago
By information.com — Published October 10, 2017
How to Deal with Financial Stress
Few problems are as mortifying as the stress of having countless debts to your name and little resources to pay them off. That being said, prolonged financial stress can have major debilitating effects of both your physical as well as emotional health. At any given time, there are numerous such individuals around the world that are not only suffering from depression, hypertension, anxiety, and other mental disorders in the wake of a financial setback but also have in some extreme cases been afflicted with more severe medical conditions such as stroke and heart failure!
Now the fact that you are reading this, clarifies that you or someone you know are experiencing some kind of financial stress and are looking for ways of getting rid of it. The good news is that like almost every other ailment in the world, financial stress too can be effectively dealt with and eliminated completely from your life. Managing your debts and planning for your future finances is the key to staying on top of your finances and restoring your utmost peace of mind. To make things easier for you, we here list out a few ways in which you can effectively deal with financial stress and manage your life well.
Gauge the situation
The most common mistake most people commit is not delving deeper into their financial crisis and staying petrified of the unknown. While some believe that talking about their financial problems is not exactly a good idea, the others are simply terrified at the prospect of uncovering the ugly truth of how much they actually owe to the bank. The fact, however, is that simply shutting your eyes and turning a blind eye to everything does not imply that the problem does not exist! You need to come to terms with reality and proactively take a closer look at your financial shortfalls to identify the best corrective measures that can be employed. Chances are that once you have effectively gauged your actual situation, a substantial portion of your stress will be released. And as they say ‘Knowledge is power’, the more you know about your condition, the better equipped you will be in dealing with it!
Review your budget
So basically, if you do not have a budget in place, it is exactly the time to create one and manage your income and expenses better. On the other hand, if you already follow a budget, a financial setback might imply that there is a need for you to review it immediately. Although your budget might have been effective in the past, a major transformation in your personal or professional life such as having a kid or losing a job might end up wreaking havoc on your current finances. That being said, it is imperative to review your budget and determine if there are any unnecessary expenses that you can strike off the list. It is helpful in knowing not only where you want to go but also how you can get there.
Get the help of a professional
If the situation seems to be too out of control and beyond your scope of correcting, it is a good idea to take up the assistance of a professional such as a financial planner to fix things on your behalf. While some people are too embarrassed about the idea of accessing professional help for their finances, the others simply deem it an unnecessary expenditure that would eventually shove them deeper under the burden of debt. That being said, financial experts highly recommend hiring professional help for dealing with grave financial setbacks and restoring the stability of life in general. Also, professional financial planners can not only help in addressing the problem at hand but also offer their valuable insight in managing your finances ensuring that you do not face any such issues in the future.
Focus on the now
It is quite natural to feel too overwhelmed about your finances when you are experiencing a major shortage of funds and there are countless debts jeering at your inability to pay them off. That being said, you must understand that recovering from a grave financial pitfall is essentially a long-term project that will progress gradually and you cannot expect to reverse your situation overnight. Needless to say, it is essential that you take one step at a time instead of trying to fix everything in one go. Get over your past and stop brooding over your future. Focus on your current situation and try to figure out ways of improving your life right now. People who disregard the power of the present and choose to dwell in the past or future find it even more difficult to deal with the situation at hand.
Eliminate your debts
Regardless of however obvious this one might seem, it is worthwhile to keep reminding yourself of how important effectively dealing with your debt really is. One of the major reasons for financial stress among a majority of the people is the burden of a massive debt that gets bigger by the day and eventually becomes impossible to pay off with the resources at hand. Regardless of whether your debt is a result of reckless spending or an unforeseen life crisis, it is essentially a part of the past and you need to stop dwelling on how you could have done things differently. Now is the time to extricate yourself from within the clutches of your debt and restore the stability of your financial health. The best way to achieve this is gathering all relevant details of whatever you owe to the bank or other people and then designing a schedule that you would follow towards reaching your goal of eliminating all debt. Experts recommend paying off the debt with the largest amount first and then proceeding to the others in a descending order. Doing this will minimize the interest portion that you need to pay to the creditors and effectively reduce your financial load in the long haul.
Set realistic future goals
Once you manage to pay off your debt and get your finances under control, it will be important to have your future financial planning in place to ensure that you do not face a similar crisis again. For that, you need to work on creating a realistic financial plan for the future as well. Monitor your spending habits and make it a point to stick to the essentials while refraining from unnecessary overspending in the future. Create an emergency fund for the rainy day by contributing a portion of your earnings to your monthly savings. Inculcate smart investment habits and dedicate a fixed amount to your preferred investment plans and policies to grow your seed money. Work diligently towards minimizing your future debts and spending only as much as you can afford to lose.
Remember, it is the small choices that we make every day that possesses the power to influence our finances in a tremendous way. So, just stay positive and focus on imbibing healthy financial habits not only for as long as you have managed to recover from your current financial crisis but also for leading an entire lifetime of peace and abundance.
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