Navigating Financial Stress (and How to Combat It) by Ian Garza

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There’s no question that finances are among the most common sources of stress for adults. Yes, financial stress significantly impacts your mental health. But it can also harm your close relationships, career, and overall standard of living. The good news is there are many practical steps to shore up your finances and pave a smoother road to your future goals. Below, this article shared by Ginny’s Law Blog discusses financial stress in more detail and shows you how to improve your standing!

The Mental Health Impacts of Financial Stress        

Money troubles can negatively impact anyone’s mood, but when problems go unaddressed, your mood can morph into a severe bout of depression. Crippling debt, lower quality of life, and the psychological distress that comes from those factors can persistently harm your health.

Anxiety is another common symptom of financial stress. If your financial issues are severe enough, you can struggle with anxiety and paranoia long after you get back on your feet; instead of growing used to barely making ends meet, start turning your financial situation around today!

Learn How to Budget     

The most fundamental step you can take to shoring up your finances is to learn how to create and maintain a budget, notes MyMoneyCoach. This spreadsheet will essentially dictate how you spend and save money each month.

Take your list of income and expenses, and find your discretionary spending by subtracting the expenses from the income. Then, create a plan for where those discretionary funds will go.

Boost Your Income     

Tightening your spending and building up your savings are crucial for maintaining healthy finances. But earning more money can also make a significant difference!

Think of ways to supplement your income without sacrificing your and your family’s well-being. Maybe you could pick up a part-time job in your neighborhood. Or, as Savvy New Canadians points out, perhaps you could start a side hustle or business that aligns with your knowledge and skills.

Launching a company will require you to lay a reliable foundation. For instance, you’ll need to select a legal structure that protects you from personal liability and yields tax benefits. You also want your structure to be flexible and easy to manage. You can use an online formation service to save time and stress and ensure your business remains compliant.

Eliminate Debt      

Carrying significant debt that racks up painful interest will keep anyone from reaching their financial goals. That’s why tackling your debts must be a top priority if you hope to transform your financial picture and see more opportunities. Paying the minimums can help protect your credit score, but it won’t help you crush your debt. To eliminate your debt quickly, you must adjust your lifestyle to bolster your financial standing and allocate some of your discretionary spending for repaying debts.

Embrace Frugality     

You might be surprised by how much your financial situation can improve by making simple changes to your lifestyle. Review your monthly expenses and determine which ones you can reduce or eliminate.

Conclusion

Financial stress can hinder each of us from enjoying life and meeting our goals, but you can start improving your situation today. Consider the information and advice above as you lay out strategies for bolstering your financial standing whether you’re creating a budget or boosting your income by starting a business. And expect your mental health to vastly improve with each step!

About our Guest Writer:

Ian Garza, a former hiring manager, is big on balance. After years of long hours working for a large insurance company, in June 2020, Ian said enough was enough. The pandemic helped him realize life is too short to give his health and life to a company that valued only his productivity and not him as a person. Today, Ian is building a consulting business with a former colleague, working fewer hours, and making time for his favorite hobbies — reading, bouldering, and hanging out with his cat.

Visit Ian’s blog here: Big On Balance

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Website: bigonbalance.com

E-mail: [email protected]