Financial freedom…is there such a thing, really? Maybe for a few elite superstars or investment moguls, but for the average American, we can’t seem to catch a break from worrying about money.
Unexpected bills, dreams for the future, and just daily living can weigh heavily on our minds and take a big toll on our financial situation.
Even though we need to be thoughtful in how we spend our money, spending too much time thinking about money can be damaging to our health, resulting in a term called financial anxiety.
If you think you might suffer from this condition, you can take steps to break free from this trap.
Do a Financial Check Up
Many times we can get anxious about a situation because we don’t feel completely in the know. This may be true about your finances.
Sitting down and writing out your living expenses then comparing that to your income can give you a better picture of how you stand with money.
If you don’t like the amount of money left at the end of the month, it’s time to make a plan of action to increase the gap between your money coming in versus your money going out.
There are three ways you can do that. The first two are easy but the third can be challenging.
Place Limits on Your Spending
First, you need to look at your expenses and create a budget. Decide which expenses are needs and which are wants and then let go of as many wants as you can.
This one simple step can help you find hundreds of dollars that you are spending unnecessarily and start putting that income to better use. This can ease the stress you have on how to make ends meet.
Find Money Saving Options for Your Needs
The next step is to look at how you’re paying for the things you need. Many times, you can find a cheaper option.
Take car insurance for example. How long have you been with your current carrier? When was the last time you shopped around for a better price?
You might find a policy that can save you hundreds of dollars a year just by making a few phone calls.
The same is true of refinancing your car or home loans. Look for when the market is beneficial and refinance at a lower rate.
You might want to look for energy saving options for your home appliances or even making home improvements that help cut down on heating and cooling bills. This would cost a little up front but can save hundreds in the long run.
There are also money saving apps that you can start using daily to find ways to save on just about everything from groceries to toiletries, and even gas. Every dollar saved is one more in your pocket!
Get Out and Stay Out of Debt
Ok, so here’s the tuffy. If you are in a lot of debt, it can feel like you are climbing a mountain backwards to financial stability. If you can find ways to reduce and eliminate debt, your financial stresses will vanish quickly.
Luckily, the first two steps will help you achieve a debt-free life, but you will have to make it a habit to pay down as much debt as you can with your newly found extra money.
Whether you use Dave Ramsey’s Snowball Method or debt consolidation, find a way that works for you to pay off your debt as fast as possible.
You’ll be amazed at how refreshing it will feel to see your debt shrink and eventually disappear.
By making your money work for you instead of the other way around, you can alleviate the stress you feel about making ends meet.
Make a budget and stick to it, find ways to save on the things you need, and pay down debt as fast as you can and you can get freedom from financial anxiety.