5 Ways to Deal with Financial StressMarch 09, 2022
5 Ways to Deal with Financial Stress
Financial stress is causing physical and mental discomfort in Canadians. If you face considerable pressure or sleep loss due to the current scenario, you understand the physical and emotional toll on your quality of life.
As the phase of self-isolation continues, more Canadians are unemployed or have lower incomes.
While financial stress is always present, finding solutions today is critical. We have some advice to assist you in dealing with your fears.
1 – Plan
Creating a budget and understanding where you stand can help you stop stressing about money. So take a deep breath and check your bank account and credit card balances if you haven’t already.
Why does avoiding financial issues cause so much stress? According to Shift Collab therapist Vivian Zhang, financial stress can be problematic because it triggers our catastrophic thinking. Our imaginations automatically jump to the worst-case scenario rather than considering all options and answers. Zhang advises you to “check your financial situation.” Create a financial status log to record your present financial situation, debts, and possible support options.
If you haven’t looked into the federal and provincial programmes, you can do so here.
2 – Consider your options
Now that you know your circumstance, you can identify what needs to change. For example, if you’re having trouble paying your bills, start with expenses, then income.
Start with the things you can go without, then look into lowering your monthly expenditures. Payment deferrals, refinancing, debt consolidation, and loan modification are choices for persons in financial distress. Making informed selections that align with your long-term financial objectives and situation is key.
If you need more money, consider going back to school, getting online training, or looking for better-paid work.
You might also check at sites that allow you to work on your own time.
Change is difficult, but being trapped is harder. So first, make minor modifications before making big ones. So you may make beneficial adjustments without unnecessary stress.
3 – Educate yourself
Confidence comes from knowing. By learning more about your finances, you will gain confidence and skills to make better financial decisions in the future.
- Reduce your debt (credit card, student loans, etc.)
- Understand your credit reports (what factors contribute to a credit score?)
- Putting money aside/qualifying for a mortgage
- Making progress toward long-term and short-term financial goals
- Enroll in a financial management and budgeting course
- Obtaining financial independence
- Investigate retirement savings options
- Create an emergency fund
4 – Stop financial shame and guilt
Money stress causes emotions of powerlessness and guilt, leading us to hide our troubles from our loved ones.
Discuss it. Open communication with family or a spouse can help you develop a plan of action. In addition, many support options are available, like video conferencing with professional therapists, to help you feel less alone.
5 – Celebrate minor wins
Inspiring optimism and confidence in your future might assist reduce stress. Change is difficult, but seeing the results may be mentally and emotionally fulfilling.
Checking your credit score and report is a good start. Banks and lenders use your credit score to measure your creditworthiness, so you should be aware of it. In addition, checking your credit report often will help you understand why your score is what it is.
Worrying solves nothing, and missing sleep won’t help you pay off debt, save for an emergency, or retire. So instead, utilise that energy to overcome your worries, learn about money, and build financial resilience and healthy habits.