How to manage financial stress and find a solution?

Money always gets in the top list of factors causing stress, and with the pandemic and the growth in the cost of living we’ve seen in Canada this year, the financial stress for households has increased even more. According to specialists, the situation may get worse before we see any improvement, as the inflation is growing. In addition to it, interest rates are expected to rise at some point in order to normalize the inflation level.

When our close friends or relatives are going through some hard times, we worry about them too. We feel helpless, not knowing how to help. And it’s extremely difficult, when we understand money could be the problem, as we know how vital a financial stability is. But even in case of people we are close with it’s not easy to know the real situation a person is dealing with. The only thing we can do is to provide moral and emotional support. When a friend tells us about the financial problems, there’s still a possibility we are told not everything.

Here are some of the ways to decrease the financial stress and cope with such situations effectively.

First of all, please, remember, that your financial situation doesn’t define who you are, regardless of how bad it is. In case you’ve lost your job, remember that it’s not going to be this way forever. If you have large debts, it doesn’t mean you’ve failed. If your budget is tight, it doesn’t mean you will never understand how to manage it better. It’s always difficult to control your thoughts, when you feel you can’t control anything, but there are certain things you can do to return control.

Although it may seem weird, one of the ways to get rid of pessimistic thoughts is to imagine the necessary solutions to the worst case scenarios you may get into. It makes you think things through and see the whole picture in perspective. Think about what will happen next, when the worst scenarios come to life. In case you’ve lost your job, you may have to sell your property and live with friends or relatives for some time until you get back on your feet. If you have large debts, you may have to sell goods you’ve purchased on credit. Although you won’t be happy to do any of that, at least you will see the possible options in case you face such challenges.

One more advice is focusing on what you can control in your life instead of what you can’t. It’s always better to begin with small steps. And don’t be ashamed to ask for help: from a therapist, a banker, a non-profit credit counsellor. The deal is that strong stress will definitely affect your health, so medical help may be necessary to stabilize your blood pressure and reduce anxiety. If there are certain difficulties in communication with your partner, a counsellor may help you. Meanwhile, a finance professional will help you understand what you’re fighting with, thus determining your realistic solution variants.

No matter how bad your situation is, you are not alone and there are different solutions. So the sooner you consider them, the sooner you’ll get rid of anxiety and regain control over your thoughts.

Yes, you may feel that you can’t control the reasons of your financial stress, but you can control the way you react to them. However, when facing stress, we usually don’t make the best decisions. That’s why it’s extremely important to admit it, when we’re anxious and trying to make a significant decision. It’s always good to have a talk with your best friend at this point. But, please, don’t think you don’t need to do anything.

Don’t let yourself think that you can just hide all the worries inside and do nothing about your situation. It will only worsen everything, because if you do nothing to control your money, others will. As a result, you will face even more uncertainty and stress as you don’t know what they will do to get what you owe them.

When you are in debt, waiting is only reducing your possible options. So it’s necessary to get help as soon as possible.

Finding the right solution could take some time, as you need to make a reasonable and informed decision based on considering all available options. Every financial decision will have a long-term impact, and when you know what it is, you will be able to choose the right solution.

Make a reasonable household budget

In case you’ve never created a budget or the current one no longer works, make a new one based on your today’s situation. You can use an interactive spreadsheet to do it on your own or get help from a professional.

Stop using credit cards

A realistic budget will help you understand what you spend money on. In case you tend to use credit to pay for everyday expenses, stop doing it. Leave your credit cards at home, delete their numbers from electronic payment methods and apps, and try to use cash. If you don’t want to use cash during the pandemic, use your debit card.

Use your income reasonably

The key to a balanced budget is the mix of smaller expenses and a larger income. Keep working on reducing your expenses, and try to increase your income. You may take additional working shifts, ask your part-time working teenager to cover some of their expenses, sell some things or return the ones with a price tag attached. But try not to make any significant changes, it’s not the right time for it. You need to make small, but firm steps.

Remain realistic

Before we act, we think about what we’re going to do. So when our mind is full of thoughts about stress, failure and despair, there’s no space in it for thoughts about the solution. Do your best to think about what you actually can do instead of what you can’t, and then search for available ways to make it happen.

The main principles of dealing with financial stress

There are numerous reasons for a financial stress, and it’s not always only about a lack of money. Such a stress can affect anyone, and everyone reacts to it in a different way. The right solution usually depends on determining the real reason of the financial stress, and not just on getting rid of its consequences. Try to stay calm and ask for help and advice from reliable sources. It will not make the stress disappear, but it will help you fight the stress influence so that you can find a solution to your problem. Coping with debts and handling financial problems is never easy, but providing a long-term financial stability is certainly worth it.