Embark on a journey of financial resilience with LXME’s illuminating blog on coping with financial stress. In a world where financial challenges can be overwhelming, this insightful guide unveils practical dos and don’ts to empower you in regaining control over your financial well-being. Let’s explore actionable strategies to alleviate stress and pave the way to a more secure and balanced financial future.
Getting through a financial crisis can be challenging. Here are some do’s and don’ts to ease stress and anxiety and regain control of your finances.
1. Identify reasons for Stress:
If financial worries like pending bill payments, problems with a credit card, debt etc., are weighing you down, start by identifying the source of your Stress. This can help you determine your next steps.
– Make a note of all your money challenges (From the biggest to the smallest)
– Keep revisiting and reviewing these challenges every six months
2. Create a Budget:
A budget balances the fundamental aspects of financial planning directed towards getting more control of your finances. It will enable you to plan for your savings and investing, allowing you to manage your money efficiently.
3. Build an Emergency Fund:
As the name suggests, an Emergency Fund is a safety net against financial turmoil. This interruption can be due to a medical emergency, unemployment, home or car repairs, unforeseen accident, loss of regular income, or other unexpected events. It is recommended that each individual or family set aside at least 6-8 months equivalent of their monthly expenses for their emergency fund.
4. Find Multiple Sources of Income
Try earning some extra money by-
– Negotiating a raise: With inflation high and a tight labour market, employers may be willing to raise wages.
– Start a side hustle: This will be suitable for earning extra income along with your full-time job. It includes tutoring, running a blog, and starting a small online business with your creative hobby, like selling your artwork, candles, soaps etc.
– Work a few extra hours: If you get paid hourly or are eligible for overtime, try putting in some spare time each week.
5. Reduce Debt:
It would help if you started clearing your dues to reduce further financial stress.
Credit card debt is a common source of financial stress unless used correctly.
You must always have a plan to pay off the debt, whether it is through loans, credit cards or any other source. To pay off your debt, try the snowball method, i.e. start paying them one at a time, starting from the lowest interest rate to the highest. Once you choose the strategy to pay off your debt, stick with it
6. Speak to someone:
At the moment, many people may be feeling overwhelmed when it comes to money – it’s ok to ask for support. Ask your questions about your finances in our community for any guidance.
1. Take More Debt
If you are already under financial stress, avoid taking on new credit card debt, loans or any other source of debt, especially with high-interest rates.
2. Spend on unnecessary expenses:
Every time you’re tempted to buy something you don’t really need, the awareness of your financial stress will slap your hand, reaching out for your wallet. While spending on needs and essentials is justified, wants can be wasteful, especially when you already stressed.
3. Spend everything from your emergency fund:
When making investment decisions based on your goals, your priority should be an emergency fund. Although an Emergency fund can help you get out of your financial stress, it is ideal that you leave some money for other unexpected circumstances..
4. Sell your investments:
During many emergencies, several investors start panicking and decide to withdraw their investments, whether at a profit or loss. However, it is essential not to touch your investments and let them grow since you may need that in the future.
5. Indulge in quick-buck schemes:
You may come across many schemes that yield higher returns over a limited period of time. Do not fall for such schemes since these can be fraudulent and will further lead to your loss and add to your stress.
While there can be many do’s and don’ts when coping with financial stress, you can curb your financial worries by planning and managing your money smartly. Though this may take some time and effort, like budgeting, tracking expenses, etc., you can get through your tough times.
FAQs around Coping with Financial Stress
Q: How do you cope with financial stress?
Budget Mindfully: Use LXME’s insights from the blog on coping with financial stress. Craft a realistic budget, focusing on essentials, and cut back where possible.
Seek Support: Join forums or communities on LXME to share experiences and gain valuable advice from others facing similar challenges.
Prioritize Self-Care: LXME emphasizes self-care strategies in dealing with financial stress. Prioritize mental well-being through activities you enjoy.
Set Realistic Goals: Break down financial goals into manageable steps. Celebrate small victories to stay motivated.
Q: What is the main cause of financial stress?
Debt Burden: LXME’s blog highlights the impact of debt on financial stress. Explore strategies to manage and reduce debt for long-term relief.
Lack of Savings: Learn from LXME about building an emergency fund. The blog provides actionable tips for saving and creating financial security.
Unexpected Expenses: LXME’s insights delve into preparing for unforeseen costs. Develop a contingency plan to minimize the impact of unexpected financial challenges.
Q: How do I stop stressing about money and enjoy life?
Financial Education: Leverage LXME’s financial literacy resources to empower yourself. Knowledge reduces anxiety, helping you make informed decisions.
Gratitude Practice: LXME’s blog encourages a gratitude mindset. Focus on what you have, fostering positivity and reducing stress.
Plan for Pleasure: Allocate a portion of your budget for activities you enjoy. LXME’s insights emphasize the importance of balancing financial responsibility with life enjoyment.
Professional Advice: Consult with financial experts on LXME to create a personalized plan, addressing concerns and paving the way for a more enjoyable life.
Share this blog with your friends and family if you find it insightful!!
Download the LXME app now to start investing! Happy Investing!
Smart Money February 23, 2024
ULIP Vs. Mutual Funds: Which is the Better Investment Option?
On the road to financial freedom and empowerment, women have several investment options available for them to choose from. Two among them are: ULIPs and Mutual Funds. In this blog, we’ll cover ‘what is ULIP plan?’, how ULIP works and the difference between ULIP and mutual fund. Read on to find out which between the … ULIP Vs. Mutual Funds: Which is the Better Investment Option?
Investment Strategies During Economic Downturn
Every woman must have heard the words, ‘recession’, ‘economic downturn’ or even ‘market crash’ while watching the news. These terms can be scary and it can lead a person to panic. But, as a woman on LXME, you should know that there is no reason to be scared. In this blog, we’ll talk about what a … Investment Strategies During Economic Downturn
Smart Money Uncategorized February 21, 2024
Empower yourself with LXME’s Fixed Deposits
Invest in Fixed Deposits: Target High Returns with LXME Welcome to LXME, where empowering women to become astute money managers is our mission. We are thrilled to introduce our newest offering: Fixed Deposits (FDs), tailored exclusively for women who aspire to secure their financial future. With LXME’s Fixed Deposits, you can invest in FD schemes … Empower yourself with LXME’s Fixed Deposits