Balancing your finances can be stressful between trying to cover your weekly costs, keeping your bank balance in the green and paying off loans, it can quickly stress any adult out. A recent APA survey found that 62% of Americans cited finances as their most common cause of stress.
With that said, here are some highly effective life hacks to reduce financial stress and live a financially healthy life.
One of the most effective ways to reduce your debt is by using the snowball method. That involves putting all of your extra money into paying off your smallest debt. After that, you take on the next lowest, until eventually you only have one large debt left.
It can also be helpful to try and clear the debt with the highest interest rate first. Some people also consolidate their debts, making them easier to manage.
A bad credit score can make you less eligible for loans, credit cards, and even renting property. It’s essential you make sure that your credit score is as good as it can be.
You can find your credit report online through various free services. Higher scores are better, representing better financial management.
To improve your credit score, try canceling any unused or unneeded credit cards. Ideally, you should only have one. Make sure you pay off any debts as fast as possible and never make rent, utility or loan payments late.
Handling your finances is much less stressful if you plan it all out in advance. Creating a budget involves calculating your weekly income and exactly how you’re going to use it.
With a budget, you can cut out costs you don’t need, see where you’re wasting your money, and figure out how to handle essential expenses like your grocery bill. Over time, you’ll streamline your spending, allowing you to save.
Of course, when it comes to financial health, it makes sense to spend less. That means cutting out luxury purchases, finding cheaper groceries, and thinking twice before you buy anything.
You can start by putting a portion of your monthly income in your savings account and watch it grow. Missing out on retail therapy might bother you now, but after a while you’ll have a nice little fund to use utterly guilt-free on the things you want.
It’s an excellent way to discourage reckless spending and reward yourself for saving sensibly.
Conclusion
Make sure you start budgeting, cutting out needless expenses, and working out ways to generate more income. Over time, you’ll feel less worried about what’s in your bank. You’ll even feel happy when you check your balance!
