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Advice For People Who Stress About Money

Having no money or the lack of it can cause a lot of people a very good deal of stress. Individuals frequently play mind games with themselves by worrying about certain situations. How will I pay if my car breaks down? How will I be dealing with the loss of a job? You can find here money management advice for people who stress about money or about their financial position and future.

Worrying about money is particularly true for people who are self-employed.  They worry about what could happen if business becomes slow and fear that they will not be able to pay for their mortgage, etc.  Most businesses go through peaks and troughs and it is certainly throughout the lean times when people begin stressing about money.  Even though the peaks are probably about to happen it becomes really hard to be positive about it.  

In this situation, I would recommend individuals who are self-employed to build up a financial safety net.  This money could be saved when they're having a good stage and can then be spent when things are not going too well.  How will I be paying for the mortgage if the business falls?  Answer, by the money you've saved up, so settle down, you will be okay.  

The periods when business is slow can be used to re-charge the batteries and can also be utilized to think of new ideas, of which path you need the business to go in. 

For everybody, it is important to identify how much money is likely to be coming in every month and how much money is likely to be going out.  In business this isn't something easy to do, however in family life it should not be that hard to anticipate.   

If the amount of money that is apparently going out is more than what is likely to be coming in, we then have to see what we are spending.  This next idea might seem a bit sad but could in reality be quite fun.  I would advise people to keep a record for the period of one month, of everything they spend.  It is not as difficult as it may sound and will offer you an insight on how much money you truly waste. 

For example, how many people are enrolled in a gym membership, but never actually end up going there?  How much money do you spend on take-out food every month?  Do you always need to use the vehicle, isn’t it possible to walk a little more frequently, therefore saving on gasoline costs?  How much money do you spend on cigarettes?  Do you really need to buy the latest flat screen television? 

During the good times we could afford to waste money, but if you are worrying about money, then it is time to tighten your belt. 

I myself attempt to save a certain quantity of money per month and invest it in a unit trust.  After a while, the fund value builds up and if I ever require a lump sum for instance, car repairs, I just cash in several of the units.  I also take out a certain quantity of money at the beginning of every year.  This assists me in paying for my auto insurance, road tax and for booking a family holiday.  This has been working well for me for the past five years and is something I plan to continue on doing for as long as it works and keeps me in de-stress. 

It is always worth planning for the future in this way, not just to cover you if your auto breaks down but also for lots of additional causes.  You may want to build up a little nest egg to: 

·         buy the car of your dreams 

·         pay for your daughters prospective wedding 

·         purchase a house 

·         have the holiday of a lifetime 

·         buy a business 

·         re-discover abroad 

·         for your retirement 

·         help fund your children’s university fees 

I'm now familiar with how much money I'm expected to spend monthly.  I like to have my own treats and waste money as much as the next man.  I'm more than happy when money is tight to offer up these treats and see it as a battle of wills.   

I hope that this information will help you take away some, or all of your money stress.