How to deal with financial stress?

Financial stress is emotional tension related to money. Many of us are facing financial hardship and uncertainty during these difficult times.

Money can be a common source of stress, whether it's caused by accumulating debt, struggling to cover monthly expenses, or struggling to increase income. Financial stress can become problematic if it disrupts your daily life. This can cause health problems, both physically and emotionally. Learning to cope with financial stress and effectively manage your financial situation can stabilize your sense of control over your life. This way you can build a secure and stable future.

The effects of financial stress include social withdrawal, relationship difficulties, weight gain (or loss), headaches, depression, anxiety, insomnia.

Here are 3 steps to take to reduce and manage your financial stress:

1. Take inventory of your finances
   Create a budget that includes all sources of income and track all your expenses. It is important to list your debts in order to assess your financial situation, identify your spending habits and its triggers, and eliminate impulsive spending.

Find alternatives to small expenses in your monthly budget and redirect those amounts toward debt repayment and savings. Creating small ways to reduce your daily expenses can really help free up extra money to pay your bills. Plan your purchases by looking for the best offers and promotions.

Try to create additional sources of income. Consider the free time, knowledge and skills you have. Maybe a hobby you have will help you earn extra money (like art, drawing, writing).

Understanding debt is the first step to getting out of it. Pay close attention to rates and interest and create a financial plan with the steps you want to take. Many people feel more motivated to pay off debt if they can see visible progress. Remember to stay focused on your goals and don't get discouraged even if it seems difficult at first.

2. Manage your overall stress
   Control your emotions and take care of your health. You can practice a relaxation technique and increase your self-esteem. Don't neglect your sleep and remember to be grateful for the good things in your life. Talk to your doctor if you have a pre-existing medical problem that could be made worse by stress.

Talk to your friends and family. Having a support system can help you achieve your goals. Ask for help and consider getting professional advice. Depending on where you live, there are a number of organizations that offer free advice on handling financial issues, such as managing debt, creating a budget or finding a job.

Take the time to have fun with your family (at a lower cost). You can do activities, walks in the park, hang out and play games with your friends. Avoid temptation by choosing an alternative to shopping. Only carry as much money as you can afford to spend.

3. Make a plan and stick to it
   Contact your creditors if you are having difficulty paying your bills or keeping your debts under control. Discuss different repayment options and understand the debt cycle. If you identify the financial problem and find a solution, you can put your plan into action. Monitor your progress and above all, don't let obstacles or setbacks demoralize you.

Don't forget to practice money awareness. It is important to have a basic understanding of financial concepts to make good financial decisions. Financial awareness is the ability to effectively manage financial resources at a personal level. This includes making purchasing decisions that are profitable and understanding interest on loans and investments.

Taking one financial decision at a time avoids getting overwhelmed. When you take the time to make big decisions, you have time to consider alternatives and get other opinions. To make better financial decisions, it is not enough to have all the information about finances. You need clarity on your values and priorities and recognition of your financial reality.

Financial stress can arise in many situations and under a variety of circumstances. As you look at your debt and spending habits, remember that anyone can struggle financially, especially in times like these. Focus on the aspects you can control when looking to move forward. Once you mentally step outside of your own situation, you can think more clearly and strategically, rather than emotionally, which will likely lead to a better long-term solution for you.