Avoid Financial Stress

Avoid Financial Stress

23 Oct 2018

Whether you are at the workplace or at home, stress has become a constant companion in our daily hectic lives. The stress levels will only worsen if your finances are not in order, thereby giving you sleepless nights. However, there is no need to panic, help is just round the corner -take the following steps towards financial well-being and get your financial situation under control:-

Analyze the problem area: There may be various reasons for you to worry and the first step towards reducing your stress is to identify the problem area. Use all your financial documents to pin point where your problem is. Key financial problems along with solutions to overcome these problems are listed below:–

1. A lower than usual income will force everyone to go for credits but this is not the right decision. Instead of it, re-evaluate your lifestyle, create a budget and follow it in a disciplined manner. If you are employed, see if you can get look at augmenting your income stream by turning your hobbies into meaningful paid work especially on weekends.

2. An unexpected illness or accident will increase your medical expenses, but you should try to overcome this through astute medical planning for yourself, parents and immediate family members by taking adequate medical insurance. Further, taking help from government health schemes can also help.

3. If you plan to move out from your family to establish yourself, then try to adjust expectations and learn to live on what you earn rather than what you're used to; use cash, not credit.

4. First baby born is not a good sign if you have no financial planning. Generally parents don’t budget for the increased expenses and the drop in income during maternity leave. You can adjust your budget and your lifestyle to fit the reduced income and increased expenses

5. As you gradually approach your retirement age, you are rich in assets (especially real estate) but poor in cash. You can no longer afford to live life plus pay the house upkeep expenses on your reduced income. You can sell the house, move into something you can afford, invest the extra proceeds from the sale, and enjoy life a bit more.

6. Set emotions aside and get rid of dead assets which are costing more than providing any meaningful revenue.

7. Spending more than you earn trying to satisfy various addictions is a bad financial habit, and in such as case, you should get professional help and counselling at the earliest. If you don't, you'll never overcome your financial problems.

Now that you have understood how to get out of a financial trap, there are many ways to achieve financial freedom in the true sense of the word, a few of those are mentioned below -

  • Gaining Knowledge: Educate yourself financially on a regular basis by accessing numerous articles, videos and tutorials. Investment in knowledge will never go waste, hence make it a point to stay updated, especially on issues pertaining to personal finance.
  • Create Emergency Fund: Even you are faced with a sudden crisis, you will not find yourself in a soup if you have an emergency fund. This fund should be able to take care of your all financial needs, including loans, daily expenses and credit card repayments, for a minimum period of 3 to 6 months ideally.
  • Reach out for help: Do not hesitate to ask for help if you are feeling the pressure of managing your finances and are unable to sort out things by yourself. Reach out to a trusted family member or a friend who can help you with your finances and get you back on a path which will lead you towards your financial goals. However, please be careful about whom you ask for advice and do not fall prey to advisors who offer quick-fix solutions or promise financial products with unrealistic high returns.
  • Be Patient: Do bear in mind that there are no immediate or overnight solutions when it comes to putting your financial life in order. Do not let financial stress weigh you down; the bottom line is that for every problem, there is a solution.

It is quite possible that your specific problem may not be listed above or it may be more complex in nature. However, the concept of identifying a specific problem is important because it is more likely to result in a meaningful and lasting solution. Just like with a leaky tap, placing a bucket below is temporary; fix the tap and the leak will completely stop.

To conclude, focus on solving the problem that’s causing your money troubles, rather than dwelling on your stress. Instead of letting financial stress bog you down, be disciplined with your finances and make this a regular habit.

Founded in 2005 by new–age entrepreneur Abhishek Bansal, the Abans Group has evolved into a globally diversified conglomerate, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management. The Group is a comprehensive financial and non-financial services and solutions provider, aiming to provide end-to-end solutions to its clients.