![]() The good news is that it’s much easier to earn extra income today than it was in the past, largely due to the increase of online freelancing opportunities. If you’re affected by financial stress, you’re probably in debt, which means (a) you’re spending more than you’re earning or (b) you’re facing additional stresses, like supporting family members or other people in your life. 3) Be honest with yourself.Īfter making a budget and starting an emergency fund, it’s time to face up to some hard truths. As a result, you will avoid getting further into debt, and be able to sidestep solutions like borrowing money or racking up credit card charges that you can’t afford to payoff. Should any unexpected costs come up - such as a vehicle repair or a last minute trip to visit family - you will have the money to meet them. Most importantly, it will provide you with the psychological security you need to keep your cool in the most stressful situations. Once you have enough money to save a little more, aim to have three to six months’ of living expenses in your fund (use the budget you made above to calculate this).Īn emergency fund can, and likely will, alleviate your stress in a number of ways. You should aim to have at least $1,000 in your emergency fund, at least until you’re out of debt. You should also consider selling some clothes, books, or other items you own, but haven’t used in years, to kick things off. But putting aside $50 a month will quickly add up to a useful nest egg. If you are struggling with debt, and not earning enough to put money aside, building up a huge fund might seem unrealistic. 2) Create an emergency fund.Īnother effective way to reduce financial stress is to start building an emergency fund to cover unexpected expenses. ![]() ![]() S ee if you notice areas where you could be spending more or spending less. Add up the total at the bottom to ensure you’re not spending more than you’re bringing in. Then to the right, type in the amount that you spend on each one, and the date the payments are due as a reminder.
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