After giving us a taste for the holidays, comes the debt-ridden January slope, and you with no money! This generates so-called financial stress, a state of anguish and anxiety that is bad for your health. That’s why here we tell you how to avoid, prevent, and deal with it so it doesn’t wreak havoc on your life.

financial stress

The Financial Health Institute defines financial stress as a condition caused by events that create anxiety and worry, often accompanied by a physical response. It makes you prone to developing health problems that can lead to serious illness.

Financial difficulties are not easy to overcome, as they affect all areas of life: family, social, etc. But that doesn’t mean there’s nothing you can do to relieve stress and get your finances in order.

Here are some tips that will help you reduce your financial stress and become even more motivated to take complete control of your finances.

Identify stress points

Whether you realize that you need to be better at saving money or if you are dealing with the difficult balance of credit cards, it is important to recognize which situations cause anxiety. It’s best to write down the three main sources of financial stress on paper so you know what you’re struggling against. Keeping the list short also helps you feel less overwhelmed.

Give this a positive connotation

financial stress

The mentality of approaching the problem is fundamental. Rather than getting bogged down in thinking that you will never get out of debt, you have to imagine the amount of stress decreasing as the debt burden gets smaller and smaller. It is important to believe that you may be able to do this.

Be realistic

It determines the goal that can reasonably be achieved and then dedicates body and soul to pursuing it every month. Make a promise to spend less each month until you reach a debt below a certain amount, for example 1,000 euros.

Make the most of your income

The belief that you simply don’t have enough money to achieve your goals may prevent you from tackling your financial problems wisely. Try to focus on getting the most out of the income you have to spend, in this way you are approaching the problem in a positive way.

Beware of credit

If you’ve gone into debt because you’ve borrowed too much in the past, you need to know that there are solutions like debt consolidation that really help you out. We asked the experts at Mondo Prestiti (http://mondo-prestiti.it/) and we were actually given confirmation that many people are able to improve their basic economic situation simply with this instrument, which deals with paying off all past debts by combining them into one, with the lowest periodic installment.

financial stress

Take small steps, they are fundamental

You may not be able to find a €500 expense to cut in one fell swoop, but you may be able to identify five monthly expenses of €100 each that you could reduce instead. You have to stick to the final accounts of your personal budget, not to individual items. Remember to look carefully at your spending patterns to see why you have gone to that point and what you could change.

Be Honest

financial stress

This is the most complex point of all, but also the most important. Every difficult task becomes easier with the support of friends and family, so you have to share with your loved ones your economic situation and the objectives to be achieved. There is no one better than those who love you who can give you the trust and respect you need.

Recognize the consequences of money-related stress

Some people resort to unhealthy habits to relieve financial stress: smoking, drinking, gambling, eating emotionally, or using drugs. Financial stress can also lead to more conflict and arguments with partners and family. 

If you identify that you’re channeling anxiety with harmful attitudes, consider seeking help from a mental health professional before the problem gets worse.

 Avoid the temptation

Try to stay away from stores and malls, at least as far as your finances are concerned. Avoid opportunities to make impulsive spending by leaving your credit and debit cards at home. Limiting yourself to using only cash will make you more conscientious, as it hurts more to hand over a ticket than to swipe the card. 

 Ask for support

We all find it hard to admit that we have money problems, but it is necessary to be honest with our closest circle: partner, family and trusted friends. Having a support system can help you reach your financial goals. 

If you are overextended, call your bank to set up a payment plan for the credit cards or loans you have applied for.