Personal Finance Shouldn’t Be Stressful
A recurring theme I encounter regarding personal finances and financial organization is that sometimes folks just don’t want to know. Certainly many just don’t have the time, but I’ve seen many too afraid of what they’ll find. Right now it’s just emotionally safer to ignore the smoke and hope the fire never quite starts.
Ignorance is, indeed, bliss.
But that bliss is not a plan and will one day extract a price. It’s easy to say “Just take a deep breath and just start with something…” – rip off the band-aid, if you will. If your situation precludes you from hiring a daily money manager like myself (who specializes in ripping off those financial band-aids), then I suggest you pick just a single starting point – be it better financial education or maybe some simple organizing – will start you on the right path.
In that vein, I came across an insightful article on NerdWallet titled “5 Ways to Calm Financial Stress,” which discusses strategies aimed at mitigating the anxiety associated with managing one’s finances. The piece emphasizes the importance of recognizing financial stress as a common issue, encourages body awareness as a signal for stress, and highlights the need for identifying personal financial stress triggers. Additionally, it discusses the benefits of getting financially organized and the positive impact of having a clear financial plan.
Building upon these foundations, I’d like to offer some simple strategies that can further assist in managing financial stress effectively:
- Embrace Financial Education: Understanding the basics of budgeting, investing, and debt management can empower you to make informed decisions, thereby reducing anxiety.
- Set Achievable Financial Goals: Break down your long-term financial aspirations into short-term, attainable objectives. Celebrating small victories can provide a sense of progress and control. Doing item #3, Creating a Safety Net, even with one or two bills, is a small, but achievable, start. The 80/20 motto takes hold here. Sometimes small, but important, actions reap huge rewards. You just need to take the plunge.
- Create a Safety Net: An emergency fund can act as a financial buffer against unforeseen expenses, reducing the stress associated with potential financial shocks. A great way to start is a set-aside savings account for upcoming larger bills, like insurance or property taxes. A little set aside each month reduces the “WOW” factor when the bill is due.
- Utilize Financial Planning Tools: There are numerous apps and software that can help streamline budgeting, savings, and investment tracking, making financial management more accessible and less daunting. The catch is that you have to commit. So I suggest if you get these tools set aside time (schedule it like an event in your calendar) to configure and then consult it. Too many times have I seen folks get these apps, some with fees, but then don’t commit. As a result, they add another recurring zombie expense and don’t improve their situation.
- Seek Professional Advice: Sometimes, consulting with a financial advisor can offer personalized guidance and strategies tailored to your unique financial situation and goals. In addition to bill paying and other assistance, I and other DMMs help clients with setting up tools, doing the “deep dive” and uncovering attitudes and habits, as well as helping to be an accountability partner. Even just getting basic financial coaching “accountability partner” services will save you more money in changing habits than the cost of the service.
The journey to financial wellness is ongoing, and incorporating a mix of these strategies can help in navigating it with a sense of calm and confidence. Feel free to reach out for a complimentary consultation if you need some guidance on where or how to start.