Four Tips to Combat Financial Stress
Improving your financial literacy and not trying to keep up with the Joneses are among the four healthy ways you can ease financial stress.
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According to a recent survey conducted by Robinhood, 84% of Americans aged 18 to 57 reported that they were feeling financially stressed about money. The survey found that financial stresses differ by generation with 45% of Gen Z and 41% of millennials reporting they feel stress while thinking about the future.
Gobankingrates recently offered four healthy ways both the generations can handle the financial stress they are feeling.
Boost your income
Finding creative ways to boost your income could help quell some of your worries about finances. The boost could come from a side gig like dog-walking, tutoring, coaching, food delivery and running a blog – all which offer flexibility while adding to your paycheck from your full time job.
You can also try negotiating your paycheck. Employers might be more likely than usual to offer you a raise due to the current state of the economy.
Avoid comparing your finances
By avoiding comparing your financial situation to those around you, you can focus on your own financial journey.
“The truth is that many people are doing better than you, and many are doing worse,”Jay Zigmont, Ph.D., and founder of Childfree Wealth, is quoted as saying. “You should only compare your finances against your goals. If you are making progress toward the goals that matter to you, then that is good. Start by figuring out the life you want to live, and then make your finances fit.”
Improve financial literacy
Zigmont recommends reading books like the Simple Path to Wealth, or The Total Money Takeover to jumpstart your journey to financial literacy.
“Learn how to budget and get out of debt,” Zigmont said. “Don’t worry about the past or mistakes you made, just focus on making improvements for the future. The best investment you can make right now is learning how to manage your money.”
Automatically add to a savings account
Meeting with your employer’s payroll department could be another good way to avoid spending beyond your means.
Many employers have the ability to send your paycheck to more than one bank account, Herman Thompson Jr., a financial planner with Innovative Financial Group in Atlanta, is quoted as saying. “Choose a dollar amount and have this routed directly to your savings account with the remainder to checking. This is a simple and easy way to ensure that when a financial emergency occurs, there is an emergency fund available to fall back on.”