Your finances can get the best of you, here are some ways to get ahead of the stress

Your finances can get the best of you, here are some ways to get ahead of the stress

By: Shawn Lubitz, Vice President, Retail and Digital Branching

Date: October 21, 2022

Over the course of this past year, inflation has made everyday items more expensive for consumers. Whether it be at the grocery store or at the gas pump, higher costs have impacted Americans. In order to tame inflation the Federal Reserve has increased interest rates, hurting consumers even further.

a young woman stressing over her finances

For many Americans, managing your finances can be challenging and a big cause of stress and anxiety. The negative headlines in the news can create even more additional stress which can feel overwhelming. In a recent survey by Thrive, 90% of respondents claimed that their finances were a cause of stress1. This number is astonishing and indicates that finances, no matter the individual or situation can impact your overall wellbeing.

Managing your finances is not one size fits all because everyone's situation is different. Taking the steps to be proactive with your finances will positively impact your financial wellbeing in the long run. There are various ways you can be proactive with your finances, so you can get ahead of the stress.

  1. Set your financial goals: It is essential to understand and set your goals. Since everyone’s situation is different, your goals will be different. If one of your goals is to purchase a home, then high home prices and mortgage rates could be the cause of your stress. It's important to sit down and really understand your goals so you can make the necessary moves to reach them. By setting realistic goals, it gives you the chance to play offense, and not defense with your finances.

  1. Get organized: One of the best ways to get ahead of the stress related to your finances is to get organized. You should be taking inventory of everything that relates to your finances. Organize your bills, bank statements, credit reports, investment accounts and spending. Once these are all organized in one place, declutter and prioritize what is important versus what can be thrown out. Once you are organized with your finances, it will make things much easier to manage. Having all of your financial documents in one place will give you peace of mind and helps relieve uncertainty that can cause stress.

  1. Budget: Having a secure budget in place is one of the best ways to ease financial stress. In a recent report done by Debt.com2, only 32% of Americans keep a household budget. Having a budget, and knowing how much you are earning each month, versus how many expenses you have and what they are is crucial to having a healthy relationship with money. A budget is your playbook for your finances, and you need one in place in order to execute on your goals. A monthly budget can really help you achieve financial wellbeing, and reduce your financial stress.

  1. Seek help: You are not alone. Financial hardships are tough to manage and doing it alone only makes it harder. Affinity Federal Credit Union is here to help you improve your financial wellbeing.  Affinity offers various resources in order to help you relieve financial stress, like our credit counseling services 3. Actively seeking help and talking to professionals about your finances is one of the best ways to get ahead of the stress and anxiety.

Your overall wellbeing is important. The majority of people struggle with stress and anxiety as it relates to their finances. With that being said, there are different steps you can take to get ahead of the stress to achieve a healthy relationship with money and overall financial wellbeing. Reach out to an Affinity team member today to get the conversation started4.

This information is for informational purposes only and is intended to provide general guidance and does not constitute legal, tax, or financial advice. Each person’s circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition.

  1. Retrieved from: https://thriveglobal.com/stories/survey-money-financial-well-being-stress-impact-health-relationships-sleep-microsteps-white-paper/
  2. Retrieved from: https://www.debt.com/statistics/
  3. Retrieved from: https://www.affinityfcu.com/tips-and-tools/credit-counseling.aspx
  4. Retrieved from: https://www.affinityfcu.com/contact-us/schedule-an-appointment/index.aspx