Reduce Financial Stress

Do you feel overwhelmed by financial stress? Evaluate how your spending habits may be causing you stress. Address ways to change your habits, and feel more in control of your finances. By setting realistic financial goals, you will be more prepared for unexpected expenses and better able to manage your daily life. Focus less on what you don't have, and instead on things that you do. With support and guidance, you can cope in the short term and long term concerns about your financial situation.

Evaluating Your Spending Habits

 * 1) Evaluate your spending. You may wonder where all your money goes each month.   Create an expenditure list of what you spend.  First look at what you spend on basics such as housing, utilities, phone, car payments, and other regular monthly expenses.  Then assess what you spend on that can vary day-to-day or week-to-week.  Track your expenses for a month or longer, to get a better picture. [[Image:Calculate-Amount-of-Food-Stamps-Step-2-Version-4.jpg|center]]
 * 2) *If you are financially stressed and have a family, try tracking the spending habits of all your family members to get a better sense of each person's spending.
 * 3) *If you are stressed due to large amounts of debt that you owe, make sure to put debt payments as part of your basics, such as utilities and housing. It's important to prioritize these equally to your other necessities.
 * 4) *Make sure to track even smaller purchases such as a morning cup of coffee at Starbucks, DVD rentals, or quick trips to the grocery store. For example, if you purchase a cup of coffee for $2.50 five days a week, it ends up being $50 a month in buying morning coffee.
 * 5) Create a monthly budget. Look at all your sources of income that are regular and consistent.  If you have a family, create a household budget that includes everyone's income in the home.   If you are a student, look at your income and/or any money via student loans or family support.  Once you have a sense of how much money you can spend each month, look at your spending habits again. [[Image:Do-a-Monthly-Budget-Step-14.jpg|center]]
 * 6) *See if your spending outweighs your income.
 * 7) *Evaluate if you are just "breaking even" in which you have no extra income or savings after your monthly spending each month.
 * 8) *Look at how much savings you have possibly each month.
 * 9) Rank your purchases from most to least important. Understand that there are differences between necessities and luxuries.  For example, if you buy your lunch every day, rather than bringing a lunch to work or school, that's not a necessity--it's a spending choice.   In order to reduce your stress, you need to understand which purchases are most important to you. [[Image:Do-a-Monthly-Budget-Step-5.jpg|center]]
 * 10) *You or your family may have strong feelings about what purchases are most important to them.
 * 11) *Once you all come to a consensus on what are necessities (such as housing, debt payments, transportation, utilities, insurance, and groceries), then you can figure out what changes to make with your other purchases.
 * 12) *Consider making a list of purchases that are "luxuries" that are costing you more than you thought. Evaluate which ones to keep, and which ones need to be reduced.
 * 13) *If you are evaluating your household's spending, try to come to a consensus among all family members. Don't force others to only make changes while you don't.

Setting Realistic Goals

 * 1) Put aside more money into savings. While it may not seem realistic to increase your savings, you need to look at the situation in the long-term.  Think about short term and long term goals in order to increase your savings. [[Image:Start-Building-Wealth-at-a-Young-Age-Step-1-Version-2.jpg|center]]
 * 2) *If you don't have a savings account, create one. Consider setting up your direct deposit with your employer so that a portion of your earnings automatically is set aside to a savings account.
 * 3) *Learn to make small changes that can lead to larger savings. For example, if you're able to save just $20 more each month, that could end up being $240 a year.
 * 4) *Be willing to make big changes in your lifestyle in order to get out of debt or overspending. For example, does a half or one-third of your income goes towards rent or your mortgage?  Consider if there are ways to reduce your housing expenses.  This may entail larger changes such as moving apartments or homes, or living with roommates.
 * 5) Reduce your debts. It's likely easier said than done, but it can make a big difference in your stress level.  If you are struggling with student loans, credit cards, or other forms of debit, make debt reduction a priority.  Be realistic that you may not pay off your debts until many years from now, but focus on how you make each day and month seem less stressful. [[Image:Prepare-a-Budget-Step-6-Version-2.jpg|center]]
 * 6) *If you are struggling to make your monthly debt payments, consider talking with the credit card companies, banks, or student loan companies about any recent hardships such as a job loss or a loss in income. See if you can negotiate lower rates or reduced monthly payments.
 * 7) *Only use your credit cards when you know you can pay off the bill each month (or pay off the bill and pay down any previous debt).
 * 8) *Get informed about your rights when dealing with debt, credit counseling, debt collection, and debt consolidation: https://www.usa.gov/debt
 * 9) Make everyday choices that increase your savings.  Think about your spending as everyday choices you make.  Many people overspend because our modern culture values wealth and luxurious living.  You may feel like you want to have certain things because "you deserve them." [[Image:Live-on-a-Budget-Step-13.jpg|center]]
 * 10) *Choose to make everyday choices that help you to save and feel more secure about your spending.
 * 11) *For example, if you like to regularly go to the mall, consider how the mall is a tempting place that can lead to overspending. Think about if there are other activities that you enjoy which could be less tempting.
 * 12) *You may find greater pleasure and reward in your purchases when they aren't everyday anymore. For example, if you switch to making your coffee at home or bringing your lunch to work, the pleasure of buying coffee at Starbucks or going out to lunch will have that much more meaning as a reward.
 * 13) Work towards an emergency fund. While many people lack enough savings to cover an unexpected expense such as major car repairs or a broken refrigerator, there are unexpected expenses that can come up more often than you'd think.  Address these unexpected expenses through an emergency fund. [[Image:Prepare-a-Budget-Step-5-Version-2.jpg|center]]
 * 14) *Anticipate that there will be unexpected expenses in life. Avoid increasing your debts because of a lack of foresight.
 * 15) *Once you have evaluated your monthly budget, factor into this budget some savings towards an emergency fund. An emergency fund should ideally cover about three to six month's worth of basic expenses.
 * 16) *Only use the emergency fund for emergencies. For example, don't use this fund to pay for Christmas gifts at the end of the year.   If you need extra money for family gifts and expenses, then create a separate fund for this.
 * 17) Find ways to increase your income.  One way to balance your spending is to increase your earnings.  Consider the costs and benefits of increasing your income.  That may involve taking on a second job, changing your job, or asking others in the household to contribute more. [[Image:Prepare-a-Budget-Step-10-Version-2.jpg|center]]
 * 18) *Think about other job opportunities that could increase your earnings.  Maybe there are ways to get a promotion and a higher salary in your company?   Maybe you could interview for a new job and negotiate a higher salary?
 * 19) *See if there is another part-time job or extra income you could pick up.  For example, if you're a handyman, you could help with a neighbor's chores around the home.  Or if you like kids, you could babysit.  Discuss with your family about how they may be able to contribute some of their earnings more.
 * 20) *With any of these options, just make sure that your work-life balance is still being considered. Many people reduce their financial stress through more work, only to face other stressors such as reduced time with family and friends, or a lack of sleep.

Being in Control of Your Stress

 * 1) Talk with your family openly about finances. While issues of money can cause anxiety for many people, it's important to make it a regular part of the conversation.  It shouldn't be a taboo topic in your household in particular.  You and your family need to be on the same page about how to spend and how to save. [[Image:Treat-Your-Girlfriend-Step-7-Version-2.jpg|center]]
 * 2) *Instead of only bringing up the topic of money when things are past-due or bills keep increasing, talk with your spouse and family about the values that you have related to money.
 * 3) *Explore what you think it going well in terms of finances, as well as what needs improvement.
 * 4) *Choose settings that allow for undivided attention, and help to foster learning. For example, have family dinners be a time to talk about finances and how to manage your money.   Teaching your kids in particular about healthy spending habits that will help them in the long run.
 * 5) Assess if you are impulsive when coping with stress. You may feel like you're out of control of your finances, yet cope with this stress by in turn making poor choices.  Do you feel like you spend as "retail therapy"? Do you feel your finances are making you turn to other poor coping habits, such as smoking, drinking, or avoiding people? [[Image:Chill-Step-11.jpg|center]]
 * 6) *Stress with work, your family, or your health may cause you to overspend as a way to compensate for feeling overwhelmed. It can be a vicious cycle in which the spending can in turn cause more stress at home or with your health.
 * 7) *Figure out if you are using negative coping to avoid thinking about your financial problems. Do you smoke, drink, or do drugs to avoid stressors about money? Do you make choices that are only about the short-term, such going out and partying with friends, but failing to see how this could lead to more trouble down the road?
 * 8) *Realize that your impulsive habits may be making things more stressful for you. Try replacing negative or impulsive thoughts with positive ones where self-control feels rewarding.
 * 9) Set boundaries when others spend your money. Sometimes, your financial stressors may not be just your own, but they could involve your partner, relatives, friends, or children. Avoid being taken advantage of as a source of money for other people. Set boundaries of what others can take from you.[[Image:Develop-Critical-Thinking-Skills-Step-12-Version-3.jpg|center]]
 * 10) *If they are relatives or friends, helping out once or twice is one thing. Helping out every week or month is different.  Help them to figure out ways to reduce their spending or increase their income.  Avoid letting them manipulate you into giving away your money, particularly if you are already struggling.
 * 11) *If they are your spouse or children, this could require you to set spending limits for your spouse and children if they continue to overspending or misuse the money.
 * 12) *Don't enable them by giving money when it only continues their bad habits. For example, let's say that your children continue to overspend their allowance each month on clothes, and end up asking for more money.  Address this concern with them and help them to understand where they might be overspending.  Set limits if it continues to be an issue.
 * 13) Avoid thinking that money can buy you happiness. While our modern culture often portrays wealth as happiness, it may give a false impression.  While being able to meet basic needs like food, shelter, and transportation are key, there are lots of people who get caught up in assessing their worth by how much money they have. [[Image:Retire-Rich-Step-11.jpg|center]]
 * 14) *Understand that you are not alone in your struggle. Avoid assuming that you're the only person making sacrifices because of financial issues.
 * 15) *Once you have your basic needs met, focus on how you can be happy with what you have. Focus on being grateful for a home, friends, family, a job, and other things that you might take for granted.
 * 16) *Get out of the "keeping up with Joneses" mindset. Avoid constantly comparing yourself and your worth based on what your friends, co-workers, or relatives have.  If they are only your friends because you're spending money on fancy trips, nights-out, or dinners, this is not likely a genuine friendship.
 * 17) Spend more time with people who value relationships more than money. Focus your attention on friends and family that don't make you feel less-than if you're having financial stress.  Identify people who care about you, no matter how much money you have. [[Image:Boost-Your-Energy-Level-in-the-Afternoon-Step-6-Version-2.jpg|center]]
 * 18) *Turn your attention to building stronger and healthier relationships with your family and friends. If you're used to buying things for them as a way to show appreciation, consider new ways to show you care by spending more time with them, or using words of affection.
 * 19) *Openly communicate about any financial challenges you may be facing. For example, let's say your friend asks if you want to take a trip with her to New York City this summer.  You may already know that you can't afford that.  Be honest about your limitations.  Loving relatives and friends will understand and be supportive.
 * 20) Take care of yourself. Learn to reduce stress through self-care.  Find ways to relax and de-stress without spending lots of money.  It could be a matter of having more time to yourself, or feeling more in control of your work and life.[[Image:Be-Single-and-Happy-Step-8-Version-2.jpg|center]]
 * 21) *Take five minutes each day to write down what you're grateful for. Consider talking about at least three positive things that happened that day or that week.
 * 22) *Get active. Exercise more at home, at work, or with your family.  It could be as simple as taking a walk around the office building, or jogging around the neighborhood.
 * 23) *Set limits when your family or your work needs you. If it's after work hours, avoid taking home piles of work to do.  If your spouse wants you to do everything around the house, learn to delegate tasks to your family members.
 * 24) *Find a relaxing space to unwind. Consider taking a nature walk.  Having a hot bath.  Or relaxing in the backyard.  Use this time to avoid distractions.  Put away any electronic devices.

Finding Support

 * 1) Seek advice from trusted friends and family who have financial wisdom. Open up about your financial stress to those you trust.  They have wisdom about what next steps to take.  Finding support can be key when you're feeling overwhelmed. [[Image:Be-Mature-Step-5-Version-2.jpg|center]]
 * 2) *Talk with friends, family, or relatives who appear to have made sound financial decisions. Ask what they might recommend to make your situation more manageable.
 * 3) *Avoid using this as an opportunity to ask them for money. Getting your friends or family involved in your money woes will likely lead to tension or drama.
 * 4) Get credit or debt counseling.  Find support to help refinance your loans, consolidate your payments, or reduce your debts.  Use only trusted, certified credit counselors.  Research the options available to you first, in order to avoid scams.[[Image:Succeed-in-Network-Marketing-Step-16-Version-2.jpg|center]]
 * 5) *Go to the National Foundation for Credit Counseling: https://www.nfcc.org/
 * 6) *Look into resources via the Financial Counseling Association of America (FCAA): http://fcaa.org/
 * 7) Consider talking with a therapist if high levels of stress continue. Money problems can be a major cause of stress in a relationship.   Think about how your financial decisions, or your partner's, have negatively impacted the relationship.  If you're continuing to fight about spending habits and feel like you've reached a stale-mate, consider talking with a therapist or couples' counselor. [[Image:Cope-when-No-One-Cares-About-You-Step-13-Version-2.jpg|center]]
 * 8) *A couples' counselor can help to teach open lines of communication. They may help you to reframe how to handle your behaviors and your relationship in a clearer way.
 * 9) *Oftentimes the causes of financial stress don't stem from the money itself, but from the actions that lead to the debt, or possibly reckless spending habits. Therapists may help you to take control of those behaviors and find healthier ways to cope when feeling stressed.

Tips

 * Identify opportunities to barter your skills as a way to reduce your spending. For example, let's say you have a friend who knows how to fix cars, and you have a couch for sale.  You could offer a trade in your items for sale in return for their skills, or vice versa.

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