HOW TO MINIMISE FINANCAL STRESS

In the pursuit of financial well-being, it’s essential to recognise that stress comes with the territory, but can be limited.

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There is a close link between financial well-being and mental health. A cycle of fear, uncertainty and financial self-sabotage can often cause us to lack confidence in our own abilities to manage our money. However, there are practical ways to minimise financial stress and pave the way for a calmer and more secure future.

DRAW UP A REALISTIC BUDGET
Start by developing a personal budget that simply outlines your income, expenses and savings goals. Be realistic about your spending habits and identify areas where adjustments can be made. A well-thought-out budget will provide a clear roadmap for your financial journey. “Even little changes can improve your financial state over time,” says Kristin Naragon-Gainey. associate professor of psychology at the University of Western Australia. “Taking action can improve well-being by giving you a greater sense of control in a difficult situation.”

BUILD A SAFETY NET
Making sure you have an emergency fund will prevent anxiety because you’ll know you have something saved for a rainy day. Aim to save three to six months’ worth of living expenses. Having this cushion can help you navigate unexpected expenses without disrupting your current living situation or long-term financial plans, reducing the stress associated with financial uncertainties. “Having accumulated your emergency savings, invest them with the aim of making your money grow by buying assets such as shares or property. Seek financial advice from a reputable professional, put a plan in place and automate transfers into your investment every month,” advises Shafeeka Anthony, JustMoney’s marketing manager. Diversifying your income sources to maintain this safety net may also provide a buffer against financial stress. Explore side hustles, freelancing or passive income opportunities that align with your skills and interests. Supplementing your primary income will contribute to a more stable financial foundation.

TRACK AND MANAGE YOUR DEBT
Tackling debt strategically is crucial for reducing stress, doubt and pressure. Prioritise your highinterest debts and work towards paying them off systematically. Consider consolidating loans or negotiating better interest rates to make repayment more manageable. Creating a debt repayment plan will provide a sense of control over your situation. “Check your bank statements monthly. Ensure that payments are going through and look out for extra costs or unusual charges,” says Shafeeka. Here, it’s also important that you take a more mindful approach to your spending habits. This involves being conscious of your purchases and distinguishing between needs and wants. By making intentional spending decisions, you can avoid unnecessary financial strain and focus on what truly matters to you and your family’s well-being.

A PROFESSIONAL EYE
Consult with financial advisors to gain insights tailored to your specific situation. Professionals can provide expert guidance on investments, retirement planning and other financial matters. Having a well-informed financial plan will boost your confidence and alleviate stress you may have about the future.

KEEP CHECKING IN
A great way to stay on track is to schedule regular reviews of your financial situation to monitor progress and adjust your strategies as needed. This proactive approach helps you to identify potential issues early on, which will allow for timely adjustments, thus minimising the likelihood of major financial stressors. Improving your finances is a journey that requires commitment and strategic planning. By implementing these practical tips, you can significantly reduce money-related stress and pave the way for a more secure and fulfilling financial future. Remember, small changes can lead to significant improvements over time.

Words by: Bianca Muller

Photography: Gallo/Getty Images