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5 Tips to Living a Financially Stress-free Life

5 Tips to Living a Financially Stress-free Life

By    |   Wednesday, 21 March 2018 07:25 AM

Financial stresses have a way of throwing one off balance. It’s a pathetic and miserable situation.

A survey by the American Psychological Association shows that stress related to financial issues could have a significant impact on Americans’ health and well-being.

Findings show that:

“72 percent of Americans reported feeling stressed about money at least some of the time during the past month. Twenty-two percent said that they experienced extreme stress about money during the past month (an 8, 9 or 10 on a 10-point scale, where 1 is “little or no stress” and 10 is “a great deal of stress”). For the majority of Americans (64 percent), money is a somewhat or very significant source of stress, but especially for parents and younger adults (77 percent of parents, 75 percent of millennials [18 to 35 years old] and 76 percent of Gen Xers [36 to 49 years old]).”

A situation capable of affecting your health and well-being has invariably rendered you inefficient and unproductive.

In order to avoid financial stress, these are 5 tips that can assist you:

  1. Financially Discipline Yourself

Living a financially stress-free life starts from your ability to financially discipline yourself. It’s a conscious effort to condition your mind against impulse spending or compulsive shopping and unbudgeted expenses. Those in this kind of habit frequently find themselves deep in debt. When they are eventually bankrupt, depression and anxiety set in.

Everybody has to consciously choose good or bad habit. It’s a choice to live a financial disciplined life. But it doesn’t happen easily. You need to work on your saving and spending habits. You can never be happy in life when your expenditures far exceed your income. Believe me, it’s a miserable situation you don’t want to get into.

  1. Save First before thinking Expenses

Whether you’re a business owner or employee, the first notion you should have whenever you receive your profit or wages is “save, save and save.” But a reckless spender will always “spend, spend and perhaps save a little or no money.”

Saving is very crucial as it allows you to have reserve funds for emergency situations and investment purposes. Mere seeing the sum in your savings can add to your daily happiness and well-being. To achieve this, make a conscious effort to save once you get your income. If you can’t, delegate this task to your bank and judiciously manage the balance you’re left with.

  1. Be Careful When Getting Loans

The processes of getting loans have turned many individuals from debtors to bailiff evader. The more such individual escapes, the more miserable and confused they are. Getting a loan is not always the problem, but paying back. It’s very perplexing when one borrow money without adequate plans to pay back.

You should have a clear goal when getting a loan. For example, you can get an auto loan for flexibility and effectiveness, a business loan for expansion and diversifying and a personal loan for emergency situations. Don’t get loans to satisfy your urge for impulse spending. You’re simply living above your means if you do that. Have a clear purpose for getting a loan and make conscious effort to pay back before the maturity period.

  1. Stick to Your Budgetary Provisions

Sticking with budgetary provisions is simply living your daily life in accordance with the expenditure items in your budget. It’s as simple as that but difficult to imbibe. Having a budget and implementing it to the letter can help to identify how your income is being spent and tracking your expenses to see that you’re within your budgetary provisions.

By evaluating your ongoing expenses to see how they mesh with your financial priorities, you can quickly make firm decisions either to reduce your expenses or continue at your present pace. Expense-tracking software can greatly assist you to achieve this. Sticking to your budget will help you eliminate reckless spending and you’ll live a disciplined and purposeful lifestyle.

  1. Diversify Your Income Portfolio

Income diversification is a sure way of increasing one’s paycheck to meet needs and live a happy life. The problem many people have today is their inability to meet their needs from one income source. Such inability degenerates into stress and other anomalies.

If you want to live a financially stress-free life, please don’t depend on one source of income. Diversify your income portfolio by investing in real estate, haulage, freelance, catering, fashion, mining, agriculture, maritime, tourism and others you have interests in. By so doing, you’ll live a financially stable and stress-free life.

Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

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A survey by the American Psychological Association shows that stress related to financial issues could have a significant impact on Americans’ health and well-being.
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Wednesday, 21 March 2018 07:25 AM
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