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You are here: Home / THE HOME / How Poor Money Management Increases Stress And What To Do About It

How Poor Money Management Increases Stress And What To Do About It

8:49 pm By Amy Thompson Leave a Comment

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This post may contain affiliate links. You can read my full disclosure here.

Not managing finances wisely can greatly increase overwhelm. Take these steps to overcome.

Original post date May 30,2018

I believe that out of control finances is one of the biggest, and often overlooked, causes of feeling overwhelmed. We see more stress, couple fights, and depression when we’re in over heads when it comes to finances.

What do I mean by out of control finances? A few examples are:

  • Too much debt
  • Too much spending
  • No savings
  • No money plan

How can barely making ends meet, drowning in debt, and not knowing where money is going not stress someone out?

There are ways to have financial peace and stability. The problem is that so many of us just don’t have the discipline or the patience to make it happen. Or, we just never learned how to manage our finances wisely.

When it comes down to it, you (or you and your spouse/significant other) are the only ones in control of your finances. No one else can choose for you to get them under control and begin taking care of them in a way that is going to make your life easier.

It is time for you to take ownership! It is time to be a Money Manager instead of someone who is managed by money!

Here are some tips to help you begin to get your finances under control:

Budget

In order to be an expert money manager, you absolutely must have a budget.

For whatever reason, the dreaded “b” word scares so many people away. My guess is that when they hear that word, they automatically think they will no longer have control of their finances, that they will have no freedom in where their money goes, and that they will be chained down to only being able to pay bills and debt.

That couldn’t be further from the truth.

In fact, having a budget actually frees us!

It gives us a chance to tell our money where to go instead of our money having control over us.

No one said that by having a budget you can’t eat out, buy that new tech gadget you’ve been wanting, or make an impulse buy. You absolutely can still do that, you just need to budget for it.

So have a miscellaneous category in your budget for a certain amount in case you want to make an impulse buy.

Set aside $50 at the beginning of the month so you can eat out.

Save $25 every month in your budget so you can afford that new tech gadget within a few months.

As long as you have the resources to do so, you can still choose to use those resources for more than just savings and bills.

And you know what else, starting a budget really isn’t all that difficult! If you’re not sure how, check out How To Create A Budget In 5 Easy Steps.

Pay off debt

Yes, this one is an absolute must in order to not feel so overwhelmed by finances. Why is having debt so stressful?

  • So much of your money is going to creditors instead of in your pocket and savings
  • Dealing with collection agencies is not fun
  • Too much debt can lower your credit score
  • You’re a slave to creditors meaning you lose freedom

I’m going to be honest – I really hate debt! And believe me, I am still working on getting out of it myself. My husband and I have a goal to get out of debt and stay that way forever by saving cash and only using that to pay for things going forward.

Have you ever kept track of just how much interest is going to creditors? I began to do this last year and I couldn’t believe the hundreds of dollars leaving my pocket every month!

If you have not written down how much is money if flying out the window in interest, give it a try. It will surely motivate you to start getting that debt paid down!

Here are some tips to lower your monthly expenses to help pay down your debt.

Have an emergency fund

Let me get this out of the way  – a credit card is not an emergency fund. Unfortunately, they are so so commonly treated as one.

Using a credit card for emergencies will just end up making you pay more in the long run in interest.

The best thing you can do is to save up cold, hard cash in the bank so you have easy access to it. With cash, you are not paying interest or using any money you “don’t actually have.”

If you have to use your emergency fund, then fit it into your budget to replenish it. You may not replenish it overnight, and you may have to make some sacrifices somewhere else to get it replenished, but it’s important!

Earn more money

It goes without saying that the more money you earn, the faster you can pay off debt and save.

Here are some ideas to help you raise your income:

  • Get a second job such as
    • Delivery driver delivering pizza or flowers
    • Drive for Uber
    • Find a temporary position at store during the holidays
    • Take a temporary position over the summer
    • Get a temporary job through a temp agency
    • Tutor
  • Get paid to take online surveys, watch videos, shop, use coupons and more at
    • InboxDollars
    • MyPoints
    • Survey Junkie
    • Swagbucks
  • Get paid to shop online through
    • Ebates
  • Start a side hustle such as a blog. Blogging is my favorite way to make extra money!

But I do want to advise you that starting a blog is not necessarily “easy” or a way to make money overnight. It takes hard work and persistence. But if you think you have it in you, it can be a great way to raise your income while working from home. Check out this post: How To Start A Blog And Make Money Online.

There are many things we can do to lessen the overwhelm of financial struggles.

What other tips do you have to get your finances under control and be an expert money manager? Please share in the comments below!

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Related posts:
5 Tips To Help You Stick To Your Monthly Budget
5 Tips To Say No When You Want To Spend Money
What To Stop Buying Right Now To Pay Off Debt And Save Money Faster
How To Get Your Spouse On Board With Your Financial Plan
6 Tips To Get Out Of Debt Once And For All
How To Save Money By Avoiding These 5 Common Bill Paying Mistakes
How To Take The First Step When You’re Overcome With Overwhelm

 

Filed Under: BUDGETING, FINANCES, SAVE MORE, SPEND LESS, THE HOME Tagged With: Budget, financial stability, get out of debt, out of control finances, overwhelm, save money

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Welcome to Living Free With Amy T! I'm Amy and I’m so glad you stopped by. Here you will find practical, realistic steps to simplifying your life with a focus on faith, family and finances. I pray that as you join me on my journey to becoming debt free and being a new parent, that you will be transformed in those areas of your life as well. more about me...

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