Money. It’s something almost everyone stresses about. Whether you have enough or are living paycheck to paycheck—there always seems to be a reason to feel worried about it. Whether you are bad at saving money, have a hard time getting a raise at work, or are spending money on unnecessary expenses, money can be stressful. But we’re here to help you! Read on to see how you can feel more financially secure.
Try our 5 tips to beat your money stress and become more financially secure.
1. Automate your savings
Saving can be difficult. It’s normal to want to spend your hard-earned cash on something you enjoy or to reward yourself on your time off. But if you don’t prioritize your savings, money that’s deposited into your bank account could vanish as quickly as it came in. This leaves you with no money left to save for the future.
The solution is simple. Automating your savings is easier with the help of tech tools. Apps like Acorns turn your loose change into savings and investments without you having to think about it. Then there are digital banking apps like Chime that not only serve as your bank account, but allow you to set aside funds automatically for saving.
Bondora tip: This is the same reason why we created the Auto-transfer feature. Making it easy for you to grow your money with Go & Grow.
There is something to be said for having all your expenses written down (whether physically or digitally). By creating a budget, you generate a holistic picture of your financial situation, including your income, expenses, and areas in which you can improve. And this can do wonders for your well-being.
Let’s imagine two different people.
Person 1 keeps a financial budget in their head and has a general idea of how much money they spend each month. But, unfortunately, this information isn’t accurate, and they aren’t able to capture the changes in spending from month to month. Also, this person adds extra stress by trying to memorize all this information. They hope they’re keeping track of all their spending and earnings, but end up worrying that their calculations are wrong (which they almost certainly are).
Now let’s take Person 2. Instead of trying to keep a mental note of their budget, they keep track of it on paper or a computer application. Person 2 doesn’t have to stress about maintaining a mental budget, but instead notes spending and earnings in a well-organized budget system. The stress of remembering this information is gone, and they can rest assured that the information in the budget is accurate.
Are you more like Person 1 or Person 2? Do yourself a favor and don’t just think about your budget; write it down and see how your stress levels go down.
3. Focus on what you have, not what you lack
One of the most significant psychological barriers in living a grounded financial life is worrying about what you don’t have. People who are always seeing the things that they lack are constantly disappointed by their lifestyle and finances.
So instead of focusing on what you lack, enjoy what you have. For instance, you might want to take more vacation time but can only afford one vacation per year. Instead of thinking about the time you can’t take off, enjoy and cherish the vacation time you do have. Or, when you purchase a new shirt, take a moment to be thankful for the money to buy that shirt. You can use this tool anytime you spend money.
One way to do this is to express gratitude for all the things you can afford. This can be via a gratitude journal or a verbal expression to family and friends. This will help put you in a positive mindset and relieve the stress and worry of the things you feel are lacking in your life.
Another thing you can do is limit your social media intake. Seeing what the rest of the world is up to can be an easy trigger to feel like you don’t have enough. Whether it’s pictures of friends at the beach or ads for fancy clothes, social media can harm your positivity and self-worth. Try limiting or cutting out social media altogether, and focus on being grateful for the life you have.
4. Reward yourself
‘You can’t enjoy life and have savings.’ This is a warped perception that many people have about savings. And it’s simply not true. Yes, you might have less expendable cash on hand if you prioritize saving, but that doesn’t mean you can’t enjoy life or reward yourself for your good financial behavior. You have to rethink what that reward looks like. Because rewarding yourself is essential to establishing good financial habits.
Instead of going out to a fancy restaurant, buy some different ingredients from what you’d typically buy and create a gourmet home-cooked meal. Or, instead of splurging on expensive new clothes, browse the bargains on online second-hand shops or a marketplace. You can even reward yourself by doing something that you love that doesn’t cost money, like reading, sleeping in, playing video games, or whatever it is you never find the time for. After all, time is money.
5. Remember: You are not alone
Almost everyone, no matter how much money they have, stresses about finances. You are not alone. Sure, some of us do it more than others, but worrying about your financial situation is about as human as it comes. So don’t worry if a little financial stress creeps into your daily life from time to time.
Which of these 5 tips are you going to try first? They can help alleviate some stress about money and make it easier for you to know what you can do to improve your financial well-being. In the end, money is a great thing, but only if it’s kept in perspective.