Financial stress occurs when you struggle to meet your commitments due to a lack of money. Common triggers include job loss, increasing debt and unforeseen expenses.

Financial stress is an “illness” that can cause other diseases.

Most people worry about not having enough money at least once in their lives. As the worries build up, so do stress levels, leading to negative consequences for mental and physical health.

Stress can kill, so it is crucial to manage it.

Using a mix of financial management and stress mitigation strategies, you can take charge of your money and your stress.

With these five tips, you can manage financial stress and look forward to a brighter future.

1. Talk with a trusted person

You might want to keep your financial problems to yourself and try to solve them on your own. It may be because you are uncomfortable about discussing your income and expenses with a third party or you are embarrassed to make your financial errors known.

But talking out your problems can help. Talking to a trusted person – your spouse, parent, mentor or friend – can release the tension, help organise your thoughts and put things into perspective.

Or, consult a licensed financial planner – a professional, neutral party who has helped others in a similar situation and can help you get your finances back on track.

Stay away from unsupportive, critical people. Surround yourself with people you trust who support your financial goals and who want to help you succeed.

2. Find the source of your money stress and take measures to overcome it

You either have an income or a spending problem, or a combination of both. There are three options to resolve the issue:

• Make more money.
• Spend less money.
• A combination of both.

Identify where your problem areas are and how to deal with them and make a financial plan. Stay focused and disciplined because there is no quick fix, it requires weeks to monitor and adjust your strategies.

Do not let yourself get bogged down by failure. You may drift from your target or unexpected events can occur to upset you but stop worrying about it. Just return to the right path.

3. Inform those who need to know

As you work to improve your cash flow, you must involve the other parties in your life. If you are married, talk to your spouse as well as your dependents, such as your parents and your children.

It may be difficult to tell your family members but is necessary for them to understand that you are all in the same financial boat. Make sure everyone in your family is heading in the same direction and understands the financial goals.

If you are a business owner and your financial stress impacts your business, talk to your business partners and other stakeholders.

You may also consider talking to your employees in order for them to understand why certain financial decisions affecting them need to be made.

If you owe anyone money that is difficult to pay up immediately, talk to them before the payment deadline and see if an alternative payment plan can be negotiated.

Assure them that you are committed to paying back your debt but an adjustment to the payment schedule is in everyone’s best interests.

4. Maintain your health

Money problems can lead to bad habits that impact your physical and mental wellness – turning to alcohol to drown your stress or not sleeping enough.

Prioritise your physical and mental wellness. Here are two good reasons to do so:

• When you are physically and mentally well, you are better prepared to take on challenges.
• You want to avoid any unforeseen medical crisis that costs money.

Start by drinking more water and putting a smile on your face.

5. Have optimism and hope

Optimistic people are better planners. It is difficult to change to create hope and confidence but try and at least “fake it till you make it”.

Research suggests that smiling (even if you do not want to) can reduce your heart rate and stress.

Another technique to find hope in stressful situations is to make a list of things to be grateful for or try to imagine life without stress.

You don’t feel like a money person? Just keep pretending until you are one.

Conclusion

Without adversity there is no growth. The challenges you face now can help make you a better person on so many levels.

You can improve your financial situation – never forget that. Take a deep breath and start taking action today.

This article first appeared in MyPF

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