How to avoid financial stress with The Money Lounge

Stressing about finances is a common thing. Historically a leading cause of worry, financial stress can look different for each individual. Furthermore, in this blog, we’ll look at some of the causes of financial stress and offer some simple advice about ways to avoid it.

What is financial stress?

Avoid Financial StressFor Instance, talking to clients about financial stress, there are several common themes that come up. My clients are stressed about:

  • A lack of money
  • Budgeting
  • Not keeping track of spending
  • Which investments to have
  • Having too much month left at the end of the money
  • Having more money than time to spend it…

Similarly, the nature of financial stress depends very much on the individual and what money means to them.

A person with a healthy bank balance but no savings could be stressed. Likewise someone with lots of savings could be stressed about losing those savings. In addition another person might stress that their monthly income doesn’t stretch to cover their essentials…

Facing your finances

Facing your finances can be hard. So often, it’s easier to bury our heads in the sand and hope for the best. But in my experience, that’s rarely a sound approach to dealing with finances.

On many occasions it can take a major life event for people to face their financial situation and do something about it. That’s what happened to me and now I actively enjoy looking after my money. Change is possible.

Small changes can add up to feeling more in control and relaxed about money. Here are just a few simple suggestions to help you take control of your finances:

  • Set up a budget of monthly income and outgoings
  • Plan a small amount of savings every month and try not to draw on those savings too often
  • Revisit all your household bills to see if you can save any money
  • Check out alternative mortgage deals to see if you can save money
  • Limit credit card purchases
  • Save up for big purchases

Know your net worth

If the idea of sorting out and taking control of your finances makes your head spin, it can be difficult to know where to start.

The first thing I talk to my clients about is net worth.

Simply put, do your savings outweigh any debt you have? Subtract the debt from the savings and you’ll have your net worth.

If you have a mortgage, your net worth will generally be a minus figure so it might be advisable to exclude that particular debt from your calculations but keep it in mind as an overall debt.

Next, do you know what you spend each month? Do you have a budget for spending each month?

I have some great templates to help you work all this out – contact me if you’d like a copy.

From my experience

Reduce Financial Stress, Gillian RayneI have my own story about how I came to handle my financial health, which I will share with you. But in a nutshell, I learned the hard way that earning money is only a very small part of your financial health.

I find it very sad that some of the very basic life skills are not taught in education as a priority and I believe that it’s a real concern within society. That’s why I make it my mission to learn everything I can about financial health, balance and independence.

Avoid Financial Stress – Useful resources for easing financial stress

For this reason, Im sharing some of the amazing resources which have helped me in my journey.

First, if you’re a fan of podcasts or reading blogs, I’ve been listening to The Minimalists recently – a great series of podcasts and blogs about finances and how to manage them. Here’s the link to a blog I found really useful: https://www.theminimalists.com/money/

If you love reading books there are some incredible ones out there to help you get started. I have no affiliate links with these books or authors, they’re just really useful resources to know about:

Rich Dad Poor Dad by Robert Kiyosaki

The Life I Won by A J King (I know this lady and her story is so powerful)

As part of my business, I’ve worked with people for a number of years to help them elevate their financial situation and reduce their financial stress. If you’d like to find out more about the work I do get in touch if you’d like to know more.

Gillian