- August 6, 2021
- Posted by: Toju Omagbemi
- Category: Finance
Financial stress, a phrase most of us can connect with. At one point or the other, we have all gone through the ordeal of financial stress.
Even before the pandemic, some of us had felt the blow from the economic meltdown. If you live in Nigeria, you live in this story. The Naira lost to the dollar several times, our purchasing power dampened as the cost of goods keeps rising. Painfully, you may not have received a raise in your pay from the office, yet your bills kept stacking up.
You may be going through some financial stress at the moment, hence we have put together these steps to help you deal with it.
Separate your Needs from Wants
This may sound elementary but, it is a good way to start. By design, humans have needs (primary) that are specific to them. Also, as part of our nature, we tend to want a few things (secondary) that we can do without.
Start by understanding and distinguishing between your needs (primary) and your wants (secondary). If possible, make a list of this.
Prioritise Your Financial Needs
Good start! Now you clearly understand what your needs and wants are.
Although your needs are primary, to better manage your financial stress, you would need to further prioritise your financial needs. Cutting down that voluminous list of needs by prioritising your needs can reduce anxiety and stress.
This can also help you focus on making one financial decision at a time, against being overwhelmed with multiple financial decisions.
Monitor your Spending
Ever been in a situation where you couldn’t save as much cash as planned or spent above your budget but couldn’t tell what the money was spent on and when? This is because you do not track your spending.
Monitoring your spending will point you towards your biggest financial responsibilities. This will further help you understand your financial stressor.
Plan to Reduce Cost
Now that you understand where your money goes and the possible triggers of your financial stress, you can now plan to either cut down on your expenses or manage your expenses more efficiently.
If you have a family, it is important to develop this plan with them.
Financial related stress can adversely affect a person’s wellbeing. But, nothing beats a positive mindset.
As you take all the needed steps to reduce your financial stress, keep a positive attitude.
You are not alone if you are going through stress due to financial issues. Keeping a positive mindset and taking responsibility for your finances by prioritising, tracking, and cutting down costs can help deal with financial stress
We hope you enjoyed reading.