Limit Your Stress: Make Financial Health a Priority
Original Article by Lacey Conner
Living with financial stress can be challenging to cope with. Financial stress can have an impact on your physical and mental health. Often, financial crises lead to depression, anxiety, and unhealthy coping mechanisms. In addition, stress may cause your physical health to deteriorate. Learning to create a healthy financial plan can boost your mood and keep you in a healthier state.
Create a Strategic Budget
According to experts, budgets consider how much money you make, how you spend your money, and how you should allocate your funds better. When you budget, you are more likely to be able to afford to spend more money on the things you want, but you can also afford emergencies if they spring up.
When creating a budget, try to use the 50/30/20 rule. In this rule, you should allocate 50% of your income to needs, 30% for wants, and 20% for debt repayment and savings. Budgets can help lower your stress level. When you do not have a savings account or feel like your finances are out of your control, it can cause a lot of stress and instability. As you reduce your stress with a budget, there is less pressure on your immune system. Not only can you create a healthier mental state, but you can also support your physical health.
Work With a Financial Planner
If you feel like you are wasting your money or if you feel like you fall behind your bills too often, a financial advisor may be able to help. Working with an expert in finances can help you make more strategic decisions with your money. For example, a financial planner might teach you how to invest in ways that maximize your cash rather than overspending.
Think of a financial advisor as an educator. His or her job is to help you understand how to build a strong financial portfolio while working towards your goals. Once the advisor analyzes your information, he or she will create a plan. This plan could be for your retirement, paying off debts, or saving for a new home.
Financial plans create a timeline for milestones. For example, you can make a financial plan for your five-year goals or 20-year plan. The plan may include budgeting, but it also gives you a blueprint for prioritizing your goals.
Working with an expert in finances can help you make more strategic decisions with your money.
Start a Side Hustle
If you want a little extra cash, consider starting a side hustle. Many people use a side hustle to obtain additional cash. You can use the extra money to save towards a vacation, a house, or retirement or you can use the money to pay off debts. If you want to start your own business as a side hustle, you may want to start an LLC in CT. LLCs have tax advantages, limited liability, and require less paperwork. Keep in mind that different states have different regulations; check your state’s rules before you move ahead with an LLC.
Different side-hustle ideas may include:
- Becoming a personal shopper
- Renting a spare room
- Teaching music lessons
- Selling used furniture
- Becoming a driver
Look at your passions and determine which passions could make you extra cash on the side.
Financial stress can have a devastating impact on your physical and mental health. If you want to break away from the cycle of poor financial health, you have to take action. For instance, create a budget and seek help from a professional to get back on track.
IMAGINE THAT!
James Mapes is the founder of Quantum Leap Thinking™, creator of The Transformational Coach™, expert on the psychology of “applied imagination,” best-selling author, highly acclaimed business speaker, consultant, seminar leader and personal excellence coach.