If you find you are constantly thinking about how to make ends meet, having funds for an emergency, and other financial concerns, you could be experiencing financial stress. While it is normal to think about ways to meet your financial needs and be prepared for emergencies, you do not need it to become a major stressor in your already busy and active life.
To reduce financial stress and take control of your financial situation, you need to check out these great financial stress-less tips and start using them today!
1. Know where your money is going.
One cause of financial stress is not knowing where you are spending your money. Take the time to sit down and create a budget. Make a list of your fixed expenses like house payment, auto loan payment, minimum credit card payments, and so on.
Next, make a list of other expenses that can fluctuate monthly like your utilities. When adding these to your budget, review your previous bills and use the highest amount you paid over the past 12 months. It is better to over-budget than under-budget and be short.
2. Open a savings account and pay yourself each paycheck.
It is important to remember to pay yourself each time you get paid. If you are on a tight budget, start with paying yourself $25 a pay period and putting this directly into a savings account. This money can be used to start building an emergency fund.
If you can pay yourself more, consider opening a second savings account. For instance, you can afford to pay yourself $50 each pay period. Put $25 in one savings account for emergencies and $25 in another account for vacations and other fun things you enjoy doing.
3. Take advantage of online banking apps to monitor your spending.
If you feel like you are slipping back into your old habits, online banking apps like those at the best online credit union can help. You can set various alerts for spending, low balances, etc. and schedule bill payments so you are never late on a payment.
4. Utilize rewards to maximize your finances.
Spending money is a necessary expense for everyone. One way to make sure you are maximizing your spending power is with a rewards checking account. You have to pay bills, so why not get rewarded for it at the same time? You can use rewards for all sorts of great things like gift cards, discounts, and even cash back.
5. Review and assess your spending every six months.
Do a quick review of your spending habits every six months and make adjustments, as needed, like when you get a pay increase or have paid off a loan or credit card. As your debts go down, you will have more money to pay yourself each pay period.
6. Start a retirement investment account.
You are never too young to start saving for retirement. You could elect to put part of the money you pay yourself each pay period into an IRA and use this money to invest in stocks, bonds, and other such investments.
By using these tips, you are sure to reduce financial stress and be on your way to growing your savings and retirement while reducing your financial worries. To learn more about online banking services, share savings, rewards checking, and retirement accounts, please feel free to stop by your nearest branch of The People’s Federal Credit Union or call us at 806-359-8571 today!