As a means of exchange, money is highly entrenched in our lives and has become
an integral part of our day-to-day living. Money is necessary for survival,
and we use it to access almost everything; from food and clothing to shelter and
so much more. Without money, one can easily come to a standstill.
Money affects our lives in numerous ways therefore,
there is a natural tendency to worry about it. However, it is possible to
avoid these feelings of worry by making a few changes which can lead to financial security.
When it comes to money matters, a lot of discipline and focus are
very important as managing money is not the easiest thing to do. In this regard,
many people have fallen into money traps, and these usually result in unhealthy amounts
of stress. The good news is that there are things we can do to help ourselves.
But before we explore these things, do give this
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1.Dont be too hard on yourself
Many times we feel like we are the cause of our problems and become fixated about what we did
wrong. This causes us to lose sight of what we can do to resolve our money issues. You may have
spending problems which can get out of control and leave you in a really bad money situation.
Unforeseen circumstances may also occur; for example, heavy medical bills may arise, you
may have serious car damages to repair or you may abruptly lose your job or source of income. This
can leave you in a state of worry if not managed well. Instead of worrying about what you cannot
control, you need to take stock of your situation and focus on what you can do to overcome it.
In a sober state of mind, contemplate what has brought you into the situation
and consider what you may be able to change in order to take steps towards
recovery. Avoid blaming yourself as this will only lead you into a deeper financial hole.
You have to be confident and determined that things will improve if you make the
necessary changes. This will give you the confidence you need to progress.
2. Identify a source of income
If for some reason you do not have a source of income, you need to figure out what you can do
to fix this. You can apply for jobs relevant to your field of expertise or the area you have
studied. Use your networks and connections to get as many applications out there as possible.
Improving your knowledge and taking relevant courses to
improve your skills can be an added advantage. Some people may not opt for employment but would
rather run a business. To get a business idea, you can assess yourself and find out what you
love doing and what your passions are. You can also think about hobbies that can be
turned into a business. You don’t have to spend much to begin and if you nurture your business
slowly and patiently, you can expect an eventual reward. Running your business will also help you
learn and interact with more people which will eventually create more opportunities for you.
Small startups which offer services such as deliveries,
home or car cleaning services and selling snacks or food may all be
good starting points. Starting something will initially leave you with no option
but to get your hands dirty as starting a business requires your full concentration.
3. Make a plan for your money
When money comes into your hands if you have not planned what to do with it you may eventually put
it in all the wrong places. Without a sound budget and properly documented money goals,
you will find it hard to allocate your resources well. Keep a record of your money, what comes in
and what you spend. What are your expenditures and are they really worth spending on?
So, you need to list what your expenses are and avoid any wasteful or unnecessary
expenses which will keep you from achieving your goals. Set your goals
wisely as the key objective is to be financially stable. Your plan should
include savings and investing some of your money in an interest earning fund.
If you are someone who likes spending money uncontrollably, you will find that sticking to
your plan and learning how to be disciplined will help you out of a distressing money situation.
Initiate a system where you periodically review your money goals to see if they
are working for you and occasionally clean out unnecessary expenditures.
As a rule, you should always bear in mind that spending more than you earn will result in
financial problems. Living within your means will increase your confidence as you will
find that you are now in control and on your way to recovery, having less to worry about.
4. Ask yourself if you really need a credit card
I always say that credit cards are both good and bad. It all depends on how we use them. There are
some rewards that come with a credit card like gaining points which can be monetized every
time you make a purchase in selected stores and outlets. The extra dollars received will enable
you to buy more. Another advantage is that the card allows you to buy and pay later depending
on your credit terms. This is helpful as you can still make a purchase with no funds. On the other
hand, some credit cards charge high-interest rates especially when you skip monthly payments. This
may accumulate into large sums of money with time and get you entangled in a dire financial
situation that can be quite worrying. If you know for sure that you cannot be disciplined
with a credit card you need to ask yourself if you really need one and if it is worth the pain.
You may need to reconsider acquiring one if you are recovering from a financial
situation and you may opt to get one only when you are sure you can
manage it well. A credit card can be very enticing and can make life convenient,
but you must ensure that obtaining one will not lead you into a financial grave.
5. Save money
Instead of using all your income, you should save for emergencies and other eventualities.
There are many money funds and investment banks that offer good interest rates that can serve
as rewarding investment avenues. So long as you identify the legitimate and credible partners to
invest with, you are assured of your money’s security as well as its growth. With time,
especially when you invest long term, you will have increased your money greatly
through compounding. This offers you security and keeps you from worrying about money.
To make the best out of this, keep increasing your savings or investments to earn more. You
can do this by having many streams of income through jobs or businesses that you run
or through any other means available to you. Saving also requires discipline and focus, and
should be part of the financial goals that you are pursuing for it to be relevant and helpful to you.
Save wisely and avoid unscrupulous bodies that could easily drown your hard-earned cash. Do your
research and use your networks to identify the best options that will yield results.
6. Plan for retirement
Who doesn't want to have a money stress free retirement? I guess everybody wants to spend
their old age in peace without the hassles of worrying about money. At this point in life,
most people are not in a position to work for money because of age and other related factors.
Planning for retirement can start as early as your first paycheck. In fact, it’s actually safer than
assuming you can start later as you have so much time. When you start saving for retirement in
your youth, the compounding effect and interest earned over the years will be staggering. This
will ensure that you don't have to worry about money even when you cannot work for
it. There are many good retirement schemes that you can invest in where your money will be safe.
I always say that the best time to enjoy life is when you have retired. Consider that all
your children are grown up and can take care of themselves and you have no one to take care of
except yourself and your basic needs, passions and hobbies. This is enough to motivate anybody
to start saving for their retirement early so that they can enjoy abundance in their old age. Money
stress in old age can be very devastating and should be avoided at all costs. You will also
be in a position to help others who may have not made the appropriate retirement plans.
7. Place your focus on what you can control
There are things in life that are totally out of our control and sometimes planning for them
can be nearly impossible no matter how hard we try. For example, you don't know when you can
get into an accident and end up in the hospital for months with a hefty bill, or if a landslide
will sweep your house down a slope and you’ll end up homeless. These are some of the inconvenient,
unpredictable occurrences which can cause significant financial stress and worries.
Realistically, we simply have no control or say, to prevent ourselves from worrying,
it makes sense to pay attention to the financial aspects we are aware of and can control.
What you know about your money may include how much you receive from your job,
what you get from dividends, commissions, side hustles, your bills and payment deadlines. With
this information properly recorded, you will be able to control your spending and pay your bills.
8. Get a mentor Financial stress
can have a great impact and cause one to become immobile, stagnant or dazed if one
is unable to deal with one’s situation. If you find yourself experiencing financial stress,
you should feel free to seek help from either a health professional or a mentor. They are able
to help you move forward as they have a lot of experience. In recent times, there have been
many people dealing with financial stress and the health professionals have dealt with many
cases which they can share to show you that you are not alone and help you through it all.
We all need to take charge of our lives instead of wallowing in worry and fear. Incidentally,
it is easier at times to succumb to defeat and negative circumstances around you. Never forget
that with focus and determination, you can rise up and overcome your worries. Planning early and
setting goals that suit your financial factors go a long way in keeping you secure. It is important
to note that every person experiences some form of financial worry from time to time.
That’s all for today, thank you for watching! If you’re still here then
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you haven't already. You can also check out our other videos on self-help and growth.