Is your financial situation stressing you out? If so, you aren’t alone. According to a study done by the American Psychological Association, 72% of all Americans reported feeling anxious about money during the past month. Millennials are the most anxious; with student debt, parenthood, and a not-so-stellar job market, it’s easy to get stressed out over finances.
Here are some ideas on how to get your finances in check:
- Pay with cash. According to Vox, many of us pay more when we use a card, whether credit or debit. When you pay with your card, you just swipe—you don’t see the money being taken out of your account and being put into another. On the other hand, when you pay with cash, you actually see your money leaving your hands.
- Create a plan. Time suggests that the anxiety we feel about money often occurs because we feel like our finances are out of our control; we have no control over when the car breaks down, when our child needs braces, or when the furnace needs to be replaced. By creating a financial plan that has specific goals and targets, you can feel like the control is back in your hands. You can also start a fund on the side that is for those financial burdens that you don’t always see coming.
- Pay little by little. If owing money is what makes you anxious about your finances, figure out a plan to get yourself out of debt. The Press Democrat suggests tackling your smallest debt first. Make a list of everything you owe in order of smallest to largest. Then pay the minimum payment on every single debt you have, except for that smallest debt. On that last debt, throw every cent you can at it in an attempt to pay it off ASAP. Once it’s paid off, apply the money you were paying toward that debt to the next smallest debt. Repeat.
- See an advisor. Money Crashers suggests that you make an appointment with a financial advisor in order to help calm your fears and ensure you’re on the right path for your financial goals. Many financial advisors offer a first appointment without pressure or obligations as a way to get to know each other and your finances. It’s like seeing a therapist, but for your money. But be careful—free financial advice is sometimes the most expensive option around.
- Stop comparing yourself to others. Typically, our social media pages are full of friends uploading pictures or statuses about trips, cars, new homes, and other indicators of wealth. As humans, one of our first reactions is to compare ourselves to our friends. However, comparing yourself to others is not a healthy way to live. Remember, you don’t know their credit card balance or what’s in their bank account. Those extravagant trips or cars might come with big debt. Also, many people post the best version of their lives on social media; what you see might not be the whole story.
If, despite your best efforts, you just can’t get a handle on your finances, it might be more than a simple money problem. Sometimes, out-of-control spending is a misguided attempt to feel good and like all addictions, just leads to feeling worse. If you think that might describe your problem, talking to a counselor can be an important first step in freeing yourself from debt.
If you’d like to set up a time to meet up with Reka, you can contact her by phone at 402-881-8125, by email at reka@omaha-counseling.com, or via Twitter or Facebook.
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