Worrying about money sucks. It can make you feel stressed depressed, unable to sleep at night. It can make you sick. The good news is there is a way out! Here are a few things you can do to stop worrying about money once and for all:
How to Stop Worrying About Money
Create a Budget
The first step to not having to worry about your finances is looking at them seriously. Once you know exactly what you have coming in and going out, you can create a budget that helps you to take control of your finances and gives you a path to follow, so you don’t have to think about it all the time.
Pay Off Your Debts
Debts are the most likely cause of sleepless nights where money is concerned, so it makes sense to try and pay them down as quickly as you can. Obviously, this is more easily said than done, but by creating a budget and prioritising debt repayments once you’ve paid for the essentials, you can get started. You may even want to see a debt counsellor who will be able to help you negotiate more manageable payments, or even get some of your debts wiped out in some circumstances too. Once you know you’re working on your debts, you’ll worry less about them.
Build an Emergency Fund
Every payday save a few pounds in an emergency fund. That way, you’ll always have a pool of money available for those unexpected expenses like a broken washing machine, expensive vet’s bill, a lost job or school trip you haven’t budgeted for. The more you have in your emergency fund, the better, but if you can save 3 months’ salary, should you end up out of work, you’ll have a useful cushion to fall back on.
Work on Improving Your Credit Score
Doing what you can to improve your credit score is a great way of feeling less stressed financially because you know that if you really need to access cheap credit, you will have no problem doing so. Paying bills on time, using a small amount of credit and paying it off at the end of each month and paying down debts are all good ways to improve your credit score.
Add More Sources of Income
It’s not for everyone, but if you’re worried about money, creating additional streams of income is a great way to go. Whether you start blogging for money, set up a side business as a dog walker or sell your art, having multiple streams of income means you’re less likely to go broke.
Cutting down on those shopping trips, expensive and unnecessary product and frivolous purchases will mean that you have more money in the bank, and that you spend less time worrying about where you’ll get the money to do whatever it is you want to do. Find some free or cheap hobbies and you’ll never feel bored spending less.
We all have money issues from time to time, but if you’re sensible throughout the year, you’ll rarely have to worry about your finances again.