Money and stress go hand in hand. No matter how hard we try to separate the two, our finances will always affect how we feel and act. We can’t deny the downturn as a result of the pandemic, but that shouldn’t stop us from pursuing what life has in store for us.
Problems and Solutions
In every aspect of life, problems come and go. That’s what makes our lives interesting — the different challenges we face every day.
Financial problems aren’t an exception. In overcoming financial challenges, you have to weigh each problem in order to decide how, and in what order, to manage them. Trying to handle everything at once will only burn you out.
There may be pressure built upon which financial issue to prioritize. However, focusing on your failures won’t eliminate the obstacles standing in your way. Instead, work on a plan and slowly get back on track.
Plan A, Plan B, Plan C – all the way to Z
The pandemic dealt a dreadful blow to livelihoods, leaving many people at the mercy of what’s left of their salaries and savings.
So, instead of paying for the house and car mortgage simultaneously, many spend what they had on more urgent needs. This underscores the importance of planning and budgeting. Planning allows us to better manage our finances.
Creating a plan that suits your current lifestyle and budget can help you control your finances in a way that fits you. Your plan can include several things. It can be about finding a new source of income by starting a business, applying for work online, or investing if you have extra cash.
If you want to invest in a rental property, looking for property management is essential to ensure your property is well-maintained and occupied by reliable tenants. It is also an effective way to diversify your income and create a steady revenue stream.
It doesn’t matter if the pandemic is still around. With the work-from-home setup and businesses booming because of the new normal essentials, your chances of succeeding are high.
These examples and the other options you may have thought of can pose various windows of opportunity for you to ease your financial burden. Just remember to be patient with your plans and take time to think each plan through.
Set Up An Emergency Fund
If you’ve ever consulted a financial advisor, you probably heard this: get an emergency fund account. It may help you to tackle unexpected bills, house repairs, or health-related emergencies. If you’ve already set up an account, ensure to store available funds away in it.
Building an emergency fund may seem unnecessary, especially with other expenses like groceries or a mortgage on your table. However, imagine the stress you’ll find yourself in emergency situations. You’ll have nothing to serve as a buffer in such circumstances.
You can prevent this situation by setting up an emergency fund.
Keep Track of Your Expenditure, Savings, and Emotional Progress
With your plan in motion, you need to keep your financial and mental state in check. First, plan your everyday expenses like operational costs. It should take, at least, 20% of your budget. If you’re planning to start a business, it’s vital to allocate funds (around 30% of your budget) for business costs.
Keeping track of your finances also ensures that your money for business, expenses, bills, and other daily upkeep is separated from one another. Then, 40% of your budget should go to emergency funds. Lastly, your wants will take 10%.
Yes, you need a portion of what you earn as a reward for your hard work. So you can spend this 10% on whatever you want. These wants could serve as a way to stay stress-free in our everyday world of financial ups and downs.
Ensure you’re eating right, exercising, and socializing.
Seek Financial and Emotional Help
Another way of keeping a healthy mental state is talking out your problems. Many lending companies also offer financial support and suggestions on how you can improve your finances.
According to CreditNinja, many lenders can give immediate financial support to their clients through various options available. This option can help clients ease their way through financial difficulties.
Besides getting financial help, proper counsel can help you develop a strategy to get out of your financial difficulties.
Opening up is always a better option compared to bottling it in. Addressing what stresses you out will help alleviate the problems and keep you away from making the same mistakes.
Take One Step at a Time
Moving on from a stressful financial situation takes time; it doesn’t happen in a span of a day. Taking one step at a time, covering one problem a day or so can be easier to handle. Taking small steps can help your mind be at ease.
Don’t just focus on your financial situation, also focus on your mental and physical health.
Stick to your plan or move to another plan if necessary. Handle the issues one after the other until everything’s in place. Even though you’re experiencing financial problems or living paycheck to paycheck, you must not forget to enjoy and live your life to the fullest.