Wednesday, October 10, 2018

How to manage financial stress and anxiety

Today is World Mental Health Day and one of the biggest causes of stress for many Australians is finance related. Financial issues are also a leading cause of divorce. So how can you manage it better?

Financial Spectrum shared the following on their site:

Financial stress is one of the most common causes of divorce. As bad as it might seem at times, there are things you can do to improve your financial situation and manage financial stress and anxiety.  Read on to find some ways you can take control of your financial situation, before it takes control of you.
1. Get professional financial advice
You might think you can’t afford to get financial advice. But if you are under financial stress, you can’t afford not to. When it comes to your health, if you had an issue, you’d see a doctor. If your car had issues, you’d go to a mechanic. When you’re facing financial issues, see a financial advisor. Whenever we are in the thick of a problem, it’s hard to find our own way out. A financial advisor knows all the ins and outs when it comes to improving your financial situation. They’re likely to find ways to help that you may not have considered or even know about, and as our financial situation improves, our stress levels decrease. Better yet, once you start to see any minor problems, nip them in the bud and see a financial advisor before they become any bigger.
2. Know where your money is going
While it’s tempting to stick your head in the sand when it comes to your finances, you need to know what the deal is. Until you sit down and work out where you’re leaking money, you can’t change your situation. Reviewing your finances so you know what’s coming in, as well as how much you’re spending in the different areas of your life, gives you a clear base to start from. With this information, your financial advisor can help you create a plan based on your lifestyle, current needs and future goals, so you can get to where you want to be.
3. Set goals
Living without goals is like taking a road trip without a map –  you can’t expect to get where you’re going easily. When you and your financial advisor are clear on your goals, it’s easier to create a solid plan for your finances.  Have you thought about when you want to retire? Maybe you want to buy your first home, an investment property or you’d like to plan for having a baby. All of these things require money so being clear on what you want in your life will enable you to manage your finances so that you achieve them.
4. Stick to the plan
Having a financial plan for your future provides financial harmony.  You know that if you stick to it, you’ll achieve the lifestyle you desire.  However sometimes life doesn’t always go the way you want it to.  If you can make changes to your circumstances so that you can stick to your plan through life’s ups and downs, you’ll reach your goals faster. However if your situation has changed to the point where your plan is no longer manageable, speak with your advisor and have it adjusted accordingly.  You may find that with some small changes and a little flexibility, you’ll still be able to get to where you want to be.

If you've been under financial stress, how did you manage it? 

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