If you are looking for ways to reduce money stress, you are not alone. Many Americans are suffering financially with the onset of the coronavirus pandemic. Recent research conducted by PwC found more than 40% of employees who are distracted by financial stress spend three hours or more at work thinking about their money issues. Nowadays, people are stressing at home working with kids too. With that being said, there are things you can do to help reduce money stress.
Below are five things you can do to help reduce money stress in 2020
Put things into perspective
Money comes, and money goes. You can do your best to try to hold on to your money, and you can save and spend wisely. However, sometimes external circumstances will get in the way of your best intentions. You have to realize that even the richest people in the world aren’t guaranteed their riches. To help you put things into perspective, imagine your worst-case financial scenario and then imagine how you would endure it; it’s probably not a life-or-death situation, and you’d likely be able to find some support somewhere. With the Cares Act in place, Americans are getting some relief. Also, if you don’t have an emergency fund in place, now is the time to start working on one.
If you’re constantly spending your time worrying about money, then you may not be properly educated about managing your money effectively. Why not channel all that energy into empowering yourself with knowledge? There is so much free knowledge out there about how to successfully handle your personal finances. Take this down time to watch documentaries and read books.
Simplify your life
Life can get complicated, and complication leads to worry and anxiety. If you’re worried about money, then you may also be feeling overwhelmed by all your expenses. Could you potentially eliminate some of those expenses? For example, you can trim some of your entertainment subscriptions or eat at home more often. Although many people are sheltering in place, people ordering take out and getting food from the drive thru is up exponentially. That means that people are still spending quite a bit of money that they should not be. Try meal prepping and learning some new dinner recipes. Now is the time to take a step back and really review how you can cut down on spending.
Get a handle on your debt
If you are carrying debt like most Americans, you are stressed out. In order to reduce your money stress, you need to get serious about reducing your expenses and putting that savings toward paying it off. Even though you may think you don’t have any money to put towards your debt, I guarantee you do. Go through your non-fixed expenses with a fine tooth comb. Any subscriptions you can cancel? What about lunches out and coffee at Starbucks? Weekend takeout meals? Unless you are living off the land, there are always ways you can cut down on your spending.
Right now, creditors are offering relief to cardholders but you need to reach out to them directly. See what they can offer and make sure to find out what it means to enter into a hardship program. Sometimes there are caveats that may leave you in a worse financial situation when things go back to normal at some point.
Doing balance transfers to a 0% interest card is also an option for those with good credit. If you are one of many Americans suffering from poor credit, do something about it. Contacting a reputable credit repair company is always an option. They can help you sort out your credit and help get you back to a healthy financial state.
Create extra sources of income
One of the best ways to reduce money stress is to make more of it. The gig economy is soaring right now and you can be a part of it. Whether it’s becoming an Ubereats driver, Instacart shopper or trying your hand at more creative work as a freelancer, there are options for everyone. When you have multiple sources of income, you feel in more control of your financial situation.