More than three-quarters of Americans report that they are worried about their finances. That financial stress can have far-reaching side effects, making it difficult to focus at work, affecting our sleep schedules and more.
Unfortunately, between mounting credit card or student loan debt and ups and downs in the economy, getting in control of our finances to minimize that stress can feel impossible.
With a few simple tips and strategies, you can take back control and start feeling less stressed about your finances.
1. Plan for the Worst
The first thing you should do if you want to lessen the burden of financial stress is to plan ahead for the worst. While it might seem odd to focus on the negative what-ifs, thinking ahead gives you a chance to start an emergency savings account.
Experts recommend padding that account with between three and six months’ worth of living expenses, including your rent, car payments and food. Save this account for emergencies liking paying the bills after you’ve lost your job or covering an unexpected emergency repair on your home or car.
2. Get Smart About Your Goals
Setting goals for your spending and savings is a great way to get ahead on your finances, but this method only works if you’re smart about the goals that you’re setting.
Setting your sights on lofty goals that are out of reach or too difficult to achieve will only leave you more discouraged. For instance, if you set a goal to save $1,000 a month, but only have enough money left over after bills to save $800, you’re never going to reach your goal. Month after month, you’ll feel disappointed in yourself as you don’t reach that goal you set, even though it’s out of your control.
Instead, set goals that you can actually reach. That way you’ll lower your stress and give yourself the confidence boost you need to reach other financial goals as well.
3. Choose the Right Credit Card
Credit cards are an important financial tool, but they can also add more stress to your life. Choosing the right card and learning how to use it correctly can help you make the most of your spending and reap some rewards as well.
With a credit card from USAA, for instance, you can enjoy cash back or rewards points on the purchases that you already make every day. Use the points or cash to pay off debt or enjoy a relaxing vacation. Plus, you’ll enjoy no penalty APR and no annual fees
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