Financial Stress

So here we are with one of the greatest stressors, finances! High debts, insufficient funds to comfortably live the life you want, what is financial stress exactly?

So we`ve defined and discussed stress holistically. Now financial stress, more so Acute Financial Stress is defined as a pattern of intrusive thoughts, disordered feelings and avoidable behaviors related to your finances. 

Have you ever experienced a period in your life where one not so good financial decision just kept creating more financial expense, and for weeks, only thing that has plagued your mind is your finances?  Trust me, you`re not alone!!!!

The American Psychological Association (APA) (2018), stated that 72 percent of Americans are stressed about money at least occasionally and 22 percent feel extremely stressed about their finances. WOW!! This means 92% of Americans are stressed because of their finances 😲

So how do we deal with this financial stress?

Along with all the other coping strategies we`ve listed in the previous blogs, here are some specific to your financial stress. N no we are not going to say find a better job paying more money!! lol. We know this is easier said than done. 

 So first up : 

1. Establish a budget – first you need to know and understand your financial debts. Yea we know just thinking about your expenses frustrates you. Lol. But understanding and creating a budget is the best way to solve your financial stress. A budget is actually a spending plan that will ensure you attain your retirement and savings goals. We all want to one day live comfortably and not stress about money; and travel the world. Bora Bora, Santorini Greece, Maybe? Well creating a budget can also help you discover extra money that can be put towards all these plans/ goals you have. It is possible!  Let me let yall in on a lil secret, this is how I do my budget. So…. I have a diary that I use for my finances. I list all my monthly expenses first, so every month when I receive my salary, I tick off all my expenses as they are paid. Then I minus all the expenses paid from my salary. Out of the balance I have, I set aside my monthly vehicle expenditure (gas, maintenance), then I take 10% of the remaining balance and transfer to my fixed savings account and forget about this account(so I don’t withdraw from it if I’m broken), then I take another 10% and buy myself something nice. One great tip, after you’ve worked hard every month, once you can, buy yourself something nice. Don`t wait for your significant other to get you gifts (not saying they shouldn’t cuz I love gifts. Lol), but rewarding yourself proves as an intrinsic motivator. Then the balance of your funds, if any, you can lime or do whatever fun activity you wish.
   
2. Establish an emergency fund -  so i`ve shown yall before about my hideaway savings account. So if I can do it, so can you. Can be a bank account (don’t take a card for it, as it will tempt you to withdraw for unnecessary expenses), a fixed deposit, personal volt, whatever savings mechanism that works best for you. An emergency fund is generally money that you have set aside to cover unexpected expenses, thus alleviating stress. If you know where your money is coming from, you can stop stressing not so? Starting with 10% may be difficult for you at the beginning, so start with what you can afford each month, and be sure to do it EVERY month. Once you get the hang of it, then you can commit to a fixed amount every month.  
   
3. External Assistance – it is ok to ask for help. Some persons are better at planning and discipline than others. So its ok to ask someone who you know has excellent budgeting skills. Financial Institutions in Trinidad also offer Financial Literacy sessions. Namely First Citizens Bank. For my friends under Ministry of National Security, we also do financial literacy and retirement planning courses which helps a lot, so you can let me know, and we can get you onto the next course we administer.
   
4. Last but not least, Change – why change? Well, most times, if you are experiencing high levels of financial stress, means that you are overspending. Thus, to control this, after you have written your budget, look at some of your miscellaneous expenses. Most times we buy a lot of things we want, and not what we need. Like those brand name jordans, or those weave bundles that we can only do for special occasions. As I said before, by putting aside a small portion of your salary for yourself, will help control your spending and still get you those extra glam you want, just in a more controlled method. For example, if you set aside $200 every month for yourself, you can buy a shoe, or top with $100 and save the other $100 to buy the bundles or jordans at the end of the year, or close to the date of your special occasion.