In the United States, approximately 77 percent of adults feel stressed over their financial situation. Moreover, more than half of all individuals think that money controls their life and have trouble getting a grip on their financial worries.
Why do so many people feel this way? In this post, you will learn some of the most common financial stressors and the steps you can take to deal with them. So, keep reading to learn more!
1. Spending Too Much Money at Once
One of the most common reasons people have financial stress is that they stretch their income too thin. Perhaps you want to remodel your home, purchase a new car, and pay off your credit card debt all at once. And, balancing all of these financial burdens can cause a lot of stress.
So, instead of trying to do everything at once, make priorities. By concentrating on one thing at a time, you’ll minimize your stress and maybe even have extra money to set aside.
2. Credit Card Debt
One of the largest financial mistakes people make is overspending on credit cards. But, as their debt starts to incur interest, they find that they no longer have the means to pay it off.
Thankfully, if your debt is minimal, sticking to a budget is all you need to do to regain control of your finances. Then, prioritize paying off your debt and eliminating unnecessary expenses. In time, you’ll see how your debt gradually reduces and is finally non-existent.
3. Job Loss
One of the most stressful monetary challenges is job loss, especially when it’s unexpected. Job loss may mean living off credit cards or other borrowed funds. And, if you struggle to find new employment, the situation can become dire.
That’s why many financial experts recommend setting aside a savings account with money for at least six months worth of expenses. This cushion gives you some time to find proper employment without acquiring debt.
4. Costs of Raising Children
Even though children can add a lot of joy to your life, raising them causes many financial fears. Even before your child is born, you likely find yourself spending thousands of dollars preparing for their arrival. And, after, you need to think about starting a tuition fund for their education.
Thankfully, wealth management services can give you great advice for saving for your child’s future. So, don’t try to juggle all your worries on your own and let an expert help you!
5. Healthcare Expenses
Unfortunately, even if you have the best insurance that money can buy, it may not cover certain health problems or medications. Or, you may need to reach a costly deductible before you can begin to reap the benefits of your insurance. That’s why medical emergencies and health problems can put a serious damper on your finances.
As previously recommended, a good way to eliminate the stress of unexpected expenses is creating an emergency fund with enough money to live on for at least six months. In addition, having this savings account will make it easier to deal with health problems and pay for medical bills, especially if your illness makes it difficult to work.
Successfully Managing Financial Stressors
While some financial stressors are the result of the decisions we make, others are completely unavoidable. But, by learning to control your finances and planning for the worst, you can prepare yourself for any challenges to come.
Yet, if your financial stress still doesn’t go away, you can consult with a financial advisor who can share the best advice for managing your money.
Would you like more financial advice? If so, be sure to check out more of the articles on our website!
