Financial Problems – Top 5 Tips To Relive Money Stress

There is NO question that the number one stressor in this world is… money. A recent study proved that people with less of it feel the most stress. However, I might beg to differ. I personally know many multi-millionaires who are completely stressed out train wrecks. I certainly wouldn’t want to live like that, not even for the sake of having a lot of money the bank. To me, it’s doesn’t seem worth it in the end. Let’s face it, you aren’t going to take it with you anyway.

Be that as it may, money is a very necessary part of life.

It just is.

Right now in this economy especially, life is not easy for most people. I have been overwhelmed with recent emails from people on my email list asking for advise in relieving the financial stress in their lives. “What can I do?” “How do I cope when I suddenly find myself laid off with a house full of children” one email read.  It’s heart-breaking. So I spent some time on the phone with some top financial experts I know in search of some good solid advice.

I discovered something very interesting and quite unexpected.

Solving money problems are not really all that different from solving any other problem in our lives.

What happens where money is concerned is that we become more emotional about financial troubles as they directly impact so many areas of our lives immediately. When there isn’t enough money, we don’t eat, we can’t pay the rent and our basic survival instincts kick into “high gear panic mode.”  Did you know that money worries can actually age you? It’s true!

So what can you do to help relieve some of the stress in your life due to your financial troubles?

Here are the top 5 expert tips:

Tip #1 – Spend Less Then You Earn

For some people, this may sound a little obvious, however it’s a proven fact that most people live well beyond their means. Even if they don’t want to admit it. They drive cars they truly can’t afford. They live a lifestyle that shovels more money out the door faster then they can deposit the pay checks. You know who you are. I was one of them. For those of you on unemployment and out of work, this means that it’s time to reduce your spending down to the very bare necessities. The bottom line here is that no matter how much or how little you get paid, you’ll never get ahead if you spend more then you earn. This is the number one factor that keeps most of us in financial dis-stress.

Tip #2 – Create A Budget and Stick To It

I was personally never really good at this one either until I learned a very simple skill. Write it all out. Click Here To find out how. By creating a written budget plan, you are able to see everything right in front of you and it will become clear in short order what the real problems are. Ask yourself this: “Until you identify the true problems, how will you ever create a solution to deal with them effectively?” Here is a great budget list that you can use to help you get started. Click Here. Modify it anyway you need to fit your personal situation. Remember, it doesn’t matter how much you make or do not make, you are still going to need a written budget plan.

Tip #3 – Pay Off Those Credit Cards

There was a time in my life when I was over $80,000 in credit card debit. I was living beyond my means, I didn’t have a written budget plan and I didn’t reduce my spending. In fact I just kept spending more. Sound familiar? The IRS came after me as well to the tune of more then $20,000 in back taxes. My financial life was a tragic mess mostly due to my credit cards. So this is a topic I have a lot of personal hard felt, hard learned experience with. I know what it feels like. However, believe it or not – if you just pay even $20 a month, the credit card companies will work with you. Clearly the idea is to pay each card off as soon as possible. It’s so easy to purchase something by using that dangerous little piece of plastic that looks so friendly. Trust me, it is NOT your friend. Here are three thing that you should NEVER buy with a credit card: #1. Food, #2. Gas & #3. Clothing.  The reason? It’s because long after those items are eaten, used up and worn out – you’ll still be paying for them with interest. Think about it. The general rule of thumb is: “If you still won’t have it and be using it a year from the date you buy it…. don’t use a credit card.”  PERIOD.

Tip #4 – Pay Yourself First

Make a serious commitment to set aside 5% or 10% maybe even 20% of every dollar you receive and put it into a savings account. Then don’t touch it no matter what. An even smarter strategy is to have it automatically deducted from your bank account before you even see it. It won’t take but a month or so for you to forget about it and adjust to your new budget arrangement. You’ll be shocked at how fast money can accumulate if only you’ll pay yourself before you open a single bill.

Tip #5 – Begin Investing Today

That may sound completely crazy when you are just trying to figure out how to keep the lights on. Believe me when I say I have been there. However, there are ways to begin to invest with as little as $500 saved. You can do that! Here is a wonderful article that will help you get started and provide you the right resources and tools to begin digging your way out of the financial hole you are in. Click Here. Another method is to use your employment benefits like a 401(k) plan, flexible spending accounts, medical and dental insurance, etc., are worth big bucks. Make sure you’re maximizing yours and taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.

Financial problems are never easy. But when you think about it, it’s all a matter of having the right perspective. Learn the problem solving skills you need. Do research. Ask. Seek and ye shall find. I promise that you can fix your financial woes, one baby step at a time. It didn’t happen over night and you won’t fix it over night either. Just slow down, and really take the information above to heart.

Above all…. Take Action.

Begin right now to fix what you can, plan and educate yourself. Before you know it, you’ll be on your way to living well WITHIN your means. Oh, and don’t worry about what other people think. Right now is a time when you need to do what you have to do.

In the ever so wise words of Dr.Seuss…

“Be who you are and say what you feel, because those that mind – don’t matter, and those that matter – don’t mind”

I would love to hear your thoughts… post a reply and “Speak Your Mind”.