Tips on Reducing Financial Stress

Do you find yourself worrying about money? Financial stress is hugely common, especially during the cost-of-living crisis in the UK in 2023. A survey found that 34% of people are experiencing financial stress, which can impact their quality of life in many ways. When people worry about money, they may find it difficult to sleep, focus at work or even enjoy time with loved ones. If you are finding it hard to make ends meet, it can result in hardship and having to make difficult decisions, such as “heating or eating”. So, what can you do to reduce financial stress?

Limit News & Social Media Intake

First, it is a good idea to limit the amount of news and social media you digest each day. This is smart right now with so much coverage and commentary on the cost-of-living crisis, but also generally, as news and social media are major causes of stress these days.

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Stop Comparing Yourself to Others

It is hard, but comparing yourself to others does not help in any way and can only cause stress and even negative feelings towards loved ones. You might have a friend that seemingly has no financial issues, but you do not know what is happening in their life, and everyone always has something to worry about. Focus on yourself and improving your situation, and you should find yourself feeling less stressed and anxious.

Create a Household Budget

People often feel stressed about money because they do not feel they have control over their finances. It can be stressful when you have money coming out of your account as soon as it goes in and many expenses to cover, including rent/mortgage payments, energy bills, council tax, food bills and travel (just as the essential expenses). Creating a household budget allows you to control your spending and get a better overview of your spending. The 50/30/20 budget is a good one for beginners and should help you to start controlling your finances and improving your situation.

Arrange an Individual Voluntary Arrangement

If you are struggling to keep up with debt repayments, then it is understandable that you are feeling stressed and worried about what the future holds. In this situation, you should speak to a specialist about an individual voluntary arrangement (IVA). Essentially, this is a highly regulated arrangement with your creditors to lower your monthly repayments to a manageable level based on your financial situation. An IVA will result in you paying less each month while still paying off your debts, which will give you more breathing room. Additionally, debt that has not been cleared is often written off after five years.

Know That Money Is Not Everything

While it is certainly important to take money seriously and resolve any issues you are facing, you should also try to remember that money is not everything. If you are relatively comfortable, then you should try to fixate less on money and focus on the things in life that bring you joy, such as spending time with loved ones, hobbies and exercise.

Hopefully, the advice in this post will help you to worry less about money and allow you to improve your situation.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.