5 Tips To Reduce Stress by Improving Your Finances
According to the American Psychological Association, almost two-thirds of individuals reported money as a major stressor in their lives. If you’re one of these individuals, take steps to improve your financial situation while reducing stress simultaneously today.
1. Create a Budget
41% of Americans budget, while the other 59% are merely winging it. Not budgeting is a tremendous financial mistake that can lead to overspending, overdraft charges, and other issues. Create a budget right away by figuring out your total monthly income and regular expenses. The remainder is what you can spend each month on dining, entertainment, and other expenses. It’s important to also put some in the bank. You may even want to go as far as to designate a set amount you save each month.
2. Start Reducing Debt
Try to pay more on your student loans, credit card debt, and other debt than you owe each month. You’ll pay less in interest as a result. In the end, you’ll pay off the debt early, free up money, and have more to enjoy life with or better your financial situation. If you’re overwhelmed by your debt, consider consolidating it. This way, you tie all the debt into one lump sum and pay monthly. Consultation often reduces the amount you owe each month in interest.
3. Increase Your Income
While you could always try to pick up more shifts at work or ask your boss for a raise, another way to heighten your earning potential is to start a business. You could even start it on the side while continuing to work. Once your company generates more revenue, keep it as a side hustle or run it as your full-time source of income.
Consider starting a limited liability company (LLC). With an LLC, you’ll receive tax advantages, reduce your liability, and have more options for your business structure — plus, there’s less documentation required to get started. Research local laws before proceeding since they vary from state to state, and you don’t want a wrong step to jeopardize your business.
4. Save To Buy a House
Buying a house will give you peace of mind knowing you have somewhere to call your own. It’s also an asset that may appreciate over time, especially when you maintain it properly. Before purchasing, save money for a down payment, closing costs, and other expenses associated with homeownership. Get preapproval first so you know how much you can afford. And as you compare houses, research the area carefully to ensure the homes are within your price range. For instance, the median home price in Scottsdale is $658,520, which may not be affordable for some people.
5. Go Back to School
Consider returning to school to enhance your career prospects. Nowadays, many colleges offer web-based degree programs, so you can get an education even if you have a family to care for or work full time. For example, if you’ve always wanted to go back to school to become a teacher, you can take courses to earn your certification. Just make sure the program offers an affordable tuition rate and has the appropriate accreditation.
Improve Your Financial Health To Improve Your Overall Well-being
Changes to your financial health can reduce stress and improve your overall health. Need help getting started? Visit Money Alignment Academy today for professional assistance on your journey to better financial health.