How To Cope With Financial Anxiety
During uncertain times more and more people find themselves suffering from financial anxiety. So many businesses are temporarily closed due to lock downs that those in the service and small retail businesses often find themselves without pay checks between shut-downs. Other people are essential workers needed to show up in person while coping with remote learning. This causes them to face the real decision of additional child care costs to ensure their children are cared for at home while they are learning. All of these scenarios add to the ever growing financial anxiety people are suffering from.
How can we cope with these uncertain times? While the answer may not be cut and dry, there are plenty of small changes that we can do in the fiscal aspects of our life to help create a bit more stability. Live frugally and only spend when necessary. This will allow you to save a bit more money in the event of a lay off or unemployment.
Those who work in restaurants and family owned businesses will need to keep a portion of each pay check to the side for emergency money. Essential workers may not have to plan so far in advance but they will need to place money aside for child care costs if they have children. Schools going remote and jumping between in person and rotating days has created an exponential need in child care services.
Building a savings account is not the only thing that you can do to decrease financial anxiety. While it is helpful to know you have some money to fall back on, you should also evaluate all of your expenses and find ways to cut your spending. The less money you see going out each month will help to reduce your panic when paying bills. Comparison shop for better rates on your utility bills. Energy companies in Dallas have been deregulated which allows for customers to shop around and find better rates. This is one of the easiest ways to instantly reduce monthly utility bill spending.
Tips On Achieving Financial Freedom
The number one tip on achieving financial freedom is to plan ahead. There is nothing worse than finding yourself in a financially unstable situation without a savings account to fall back on. The first thing everyone should do is start putting money aside from every paycheck. This is a great habit to get in to from the day you enter the work force. Even a small amount such as $10 a week will build over time. As you earn more over the years and experience pay increases, you should increase the amount of money you are putting away each week. The idea is to never dip into this saved money unless there is an emergency. Not everyone is taught this strategy when they begin working but everyone can begin implementing it as soon as they learn about it.
Aside from saving money each week in an emergency fund there are other ways to make money and keep it on the side in the event of financial uncertainty. There are websites that often seek part-time order takes, survey fillers and opinions. These money making strategies do not pay a lot but over time the money does add up. These types of income generators often pay via PayPal or gift cards. Other ways to make money include food delivery services and ride sharing. These allow people to work on their own schedule and make a little money to put into a reserve account. When you are coming out of financial hardship it is good to build a way to generate income in your spare time to help rebuild an emergency savings account.
Once you feel financially stable you are ready to move forward with achieving financial freedom. Investing and utilizing a investment manager will help you build wealth. You will also want to start a retirement account and interest bearing accounts to help you retire on time and live off of your interest. Additionally, seeking out employment with businesses that offer a 401K, benefits and a pension will ultimately help you achieve financial security and freedom much quicker.
