Mostly, people would agree that money can be a stress factor, especially if we just have too little of it. According to a survey conducted by the American Psychological Association, it is actually the top cause of stress in 2014, which is followed by work and economy, which are also obviously connected to money. What is more concerning is the fact that stress can have a negative effect on our well-being. With that said, it is important to reduce the amount of money-related headaches that we accrue. How?
This is one great way to control what you spend, know exactly where your money is and plan for your expenses to some degree. After all, if you do not know where your money is going, it would be difficult for you to feel like you have any control. This step can drastically improve how you feel about your finances and how you can manage it.
You should only focus and worry about the things you have control over. We all know that most of us have no control over the economy, so what is the point of worrying about it. Just save some money, stick to your long-term financial plan and allocate some emergency fund. Simply put, you have no control over the stock market, so it would be easier for you to just not get stressed about it.
With retirement savings, you can allow a little bit of money and time to work in your favor. With the power of compounding, you can get to your goals. However, the key here is to start saving something as soon as possible, especially if you are not doing it yet.
One big concern among people is facing unexpected expenses, and the best way to eliminate this is having an emergency fund. It will help you to cover unmitigated costs that would emerge at the worst possible time. As recommended by experts, you should have somewhere between 3-6 months of expenses in a savings account.
Money can cause stress, but by taking steps to make positive changes to your finances, such a health factor can be greatly reduced, which means you get to enjoy your life to the fullest.