Financial anxiety is real; money fears are real. Do you ever feel so perturbed about your finances, especially about what will happen tomorrow regarding money? It happens a whole lot of times; you don’t have to wallow in it, just ensure you get your finance peace back.
To come out of financial anxiety, you need to identify your financial position and get a well-detailed plan. I have written down some tips below to help you out from financial anxiety. You can use these tips as often as you fall into financial anxiety.
Identify the feeling- Admit that you have financial anxiety; it is at this point you can help yourself. Don’t feel bad about it, you just have to get yourself out of it.
Know where you stand- Knowing is half the battle. Get a pen and paper and write out where you stand financially. Know your net worth (your total assets less your total liabilities), state out your incoming expenses/bills and income, state out your financial goals (with their due dates).
Perform a reality analysis- After stating out all the above. Check to ensure that the timing of your cashflow is fine (your incoming income will be available at the right time to meet your expenses). Also, check to ensure that you are still in line with your financial goals (if it may not seem so, can you edit your goals? Your goals should be flexible, you know right?). Check out your creditors and debtors and follow up on them (have a talk with your creditors if need be to assure them of your payment with time).
Spend within a budget- Work out your ideal monthly income and expenses. Make a budget template for every month on how you will spend your income(s). Prioritize your expenses, take into consideration your debts, investment plans and emergency fund (if you do not have a solid one yet).
Have an emergency fund- To mitigate the effects of a financial dilemma on your finances, it is wise to have an emergency fund which covers at least three to six months of your basic expenses. This saves you from fears of unexpected financial obligations.
Have investment plans- To cater for your retirement, have a passive income and assets to always fall back on, you need investments. If you do not have one, don’t be saddened, get a plan to start. Write out your investment goals and check out plans that suit them.
To overcome financial anxiety, it is very important that you create a well-detailed plan. When you plan, it gives you peace and makes it seem like the whole universe starts working in your favour.
Don’t just plan, bring them to actuality!
We believe in you!
To your financial independence and freedom