Reducing Financial Stress and Anxiety

More than 3 million Americans filed for unemployment during a single week in March as the spread of the novel coronavirus (COVID-19) forced businesses to shutter and people to stay home.

Job loss, reduced work hours and financial insecurity caused by the pandemic are exacerbating stress that already stems from money.

Five ways to reduce financial anxiety

1. Face the facts.

Not being sure of the extent of your cash flow problem will only stoke your anxiety. Schedule some time to go through all your statements and bills. Find out if you really are in the red and, if so, by how much. Knowing what you are dealing with is the first step to sorting it out.

2. Create a budget.

Once you have a handle on your outgoings, look at your income. Work out how much you have left over after you have met all of your obligations. When you know what you can afford to spend each month, you will feel more in control.

3. Understand and Change Your Spending Habits

An important part of forging better money habits is not just understanding what you spend but why you spend the way you do. After all, you can’t change what you don’t understand.

Everyone has a complex relationship when it comes to spending. How you acquire, spend and manage money is largely due to two factors: the nurturing you received during childhood about money and values, and the way you organized this information in your mind. For example, if you value religion, you might tithe to the church. Or, if you value education, you may prioritize college savings.

4. Build a buffer.

If you can afford to put some money aside each month, create an emergency fund.

Advisers typically recommend aiming for three months’ earnings in an easy-access savings account, which you can use for unexpected expenses. If you can’t manage that much, any funds you can build up will be helpful.

5. Ask for help if you need it.

If your debts and other payments are too big to tackle, get help.

Energy companies and banks will usually consider lower monthly repayments if you call and tell them you are struggling.

Charities such as Step Change and Citizens Advice can help you check that you are claiming any benefits you are entitled to. They can also refer you to other services if you are experiencing anxiety.

Here in Supreme Credit Restoration,

We don't only help people repair their credit scores,

but we also help them manage their finances to have a better life.

An Anxiety - Free Life!