Dealing with Financial Stress

Personal finances can be extremely stressful, particularly in an economic climate that tends to punish mistakes. Handling money on a day-to-day basis can be an incredible strain for many of us, more so for those one-off events like moving house. This kind of pressure tends to be made even worse by major life events – a forthcoming wedding, a new baby, retirement, redundancy or changing jobs – which can have the kind of significant effect on finances that can bring a carefully constructed plan tumbling down. The result is often stress – from headaches and insomnia, through to a full-blown panic attack situation or even depression.

However, it doesn’t have to be like this, as there are ways of handling your finances – even the unpredictable events – that mean that your stress levels can stay down at ‘relatively normal’ rather than rising right up to ‘explode.’

Have a buffer – if you constantly live at your financial limits then there is very little room for error, or for sudden changes in your circumstances. Creating a financial buffer for yourself will give you a great deal of peace of mind when it comes to worrying about the unknown and the unexpected, as well as greater flexibility for making decisions about your life.

Budget – it’s amazing how far you can make your money stretch if you plan in advance how to do it. Making a weekly, monthly and yearly budget will help keep stress levels low, as you will know how much is coming in, what is going out, and what that leaves you spending wise. Buying anything you’re not sure you can afford can make you feel incredibly stressed and will most likely take all the joy out of it.

Deal with your bills quickly – there’s nothing quite so stressful as trying to carry on as normal when you know that hidden under the bed are two months worth of unpaid bills. When you get a bill, deal with it straight away, whether that means paying it or speaking to the creditor to ask for more time to pay. Remove the threat of bailiffs, red letters and overdue demands by managing the situation and consequently keeping your blood pressure down.

Get insurance – although some types of insurance can be a bit of a racket, others can take the pressure off some of the fears that cause us the most stress, such as being made redundant or not being able to pay your bills. If you’re considering any kind of payment protection insurance then be sure you read the small print first and don’t allow yourself to be pressured into it.

Have a plan – this applies to normal day-to-day finances, such as paying the mortgage, as well as a one off event like moving house. Sit down and make a plan of the outcome you want in each case and how to get there. Consider all the potential negatives that could arise, make contingencies where you can, and think ahead to the point at which you’re sitting pretty post-move, or with your finance sunder control. Having a clear goal and identifiable steps is the best way to keep yourself calm and focused.

Dealing with stress in a financial situation is all about staying on top and keeping yourself informed. When you know exactly what your finances look like, you can make sensible decisions to start getting yourself to where you want to be.

If you are facing problems, and would like to speak to one of our advisors in confidence, please call Jemima Poppy today on 01908 232879.