We all worry at times, but how do you stop worrying about money and the future?
It’s hard for anyone to know what they will be doing in the future, and many people are afraid of not having enough money.
But it doesn’t have to be this way!
Taking a few simple steps to manage and plan your money and your life will help allay many of your financial worries and anxiety about the future.
Here are nine ways you can stop worrying about your finances so much:
1) Spend less than you earn
This is a simple concept but may be hard to manage with all life’s money pressures.
If you want to save money, you have to spend less than what you earn.
Look for ways to find cheaper options, cutting down or cutting out the things you don’t need.
Finding cheaper providers for your utilities, internet or regular grocery shops would be good places to start.
The potentially harder task is differentiating between needs and wants.
What you need to survive and what you just want because you want them.
The difference between the two and cutting out the wants might well be where you can save the most money.
Do you need, Netflix, Prime, and Sky?
2) know what good looks like
What do you actually need vs want?
If you really want to stop worrying about money, this is a good way to start.
Plan out your current needs on a weekly, monthly, and yearly basis.
Understanding clearly what you need is the first part of financial peace of mind.
Once you have this you can have good at creating your best guesses of what you want the next 5, 10, 20+ years to look like.
And ultimately when you want to retire or work to become optional. this is the beginning of a financial plan and how to stop worrying about the future.
3) Start saving now
The earlier you start and the more considered you can be in your spending habits will mean that when exciting opportunities or in the longer-term retirement does come around, you can have more options to choose from.
Automate your savings so that a fixed percentage of your income goes into savings or investments without you having to worry about it.
This will help ensure that over time, as your salary grows (fingers crossed), the amount saved also grows.
It also takes you out of the decision-making process – you often being the weakest link in building your wealth and creating your own money worries.
Pay Yourself First – This well-known concept is to make sure you pay yourself first.
There may be a temptation when life happens, expenses come up or the bills are due that we push paying ourselves as low on our priority list as possible.
This way of thinking can set us back from achieving financial goals and might even cause anxiety about money in the future.
Instead, pay yourself first and make sure you treat your future well-being as a priority.
This might mean cutting down on expenses to allow for savings or paying the self first every month.
No matter what way of thinking you choose it is important that saving becomes part of your mindset so that you are building towards financial stability and security now and in the future.
4) Pay off your debts
Debt can be stressful and you must take care of your obligations as soon as possible so that you don’t stress out every month thinking about money.
A debt avalanche is a form of repayment that can help you get your debt under control quickly.
Instead of repaying the smallest loan first, pay off the one with the highest interest rate and keep going until all debts are paid in full.
This way, any money saved on interest will add up to more money towards another goal.
The Debt Snowball is another repayment option that pays off the smallest loan first and then works up to the larger ones.
Whichever method you choose, pay attention to your budget and work out how much money will be available after all expenses are met. This way there won’t be any surprises when repayments come due each month or week!
5) Invest for retirement
It’s never too early or too late to start investing for your future self!
Many people think that they can’t start investing until they have a lot of money saved up.
This is not the case!
There are many different types of investments, some that you can even get started with very little money.
If you have a work-based pension you can start there especially as it is likely FREE money offer on offer in the form of matched contributions i.e. you put in a certain amount and they match it up to a %.
The earlier you start, the more time your investment has to grow and compound over time.
6) Have an emergency fund
You never know when life may throw a curveball at us, so it’s important that we have some funds set aside in case of emergencies like a job loss or medical bills.
Aim to have at least three to six months of living expenses saved in case something unexpected happens.
This fund can help take the pressure off when times are tough and will stop you from having to rely on credit cards or loans in a time of need.
7) Put in place some protections
If you have dependents, it’s important that you put in place all the protections possible to make sure they are well taken care of if something were to happen.
This can include insurance on your house or car (if you are still paying for these), life insurance, income protection and critical illness coverage.
Paying attention to protecting yourself against all possible risks will help put you at ease when it comes to money worries now and in the future.
8) Help yourself
It’s important to realize that most of our financial worries are self-imposed. We can do a lot to help ourselves feel more financially secure by making better choices with our money and being mindful of how we spend.
You can educate yourself for free by reading the right books and listening to the right podcasts.
Take a trip to your local library and see what they have available – for FREE.
9) Get some help!
Sometimes it’s nice to have someone else take a look at our financial situation and give us some advice. A Life and financial planner can help you develop a plan that is tailored specifically for your needs and goals.
Money is always going to be a source of anxiety for many people, but it doesn’t have to control your life and cause stress.
If you are in debt crisis then these two organisations might be able to provide the help you need
“Worrying does not take away tomorrow’s troubles, it takes away today’s peace.” – Unknown.
Summary: How do you stop worrying about money and the future
Saving, investing and budgeting are just a few of the tips we’ve shared to help you stop worrying about money.
- Making sure you spend less than you earn
- Starting to save money for now and for retirement well in advance
- Paying off your debts as quickly as possible,
- Investing for the future well ahead of time,
- and having an emergency fund will help alleviate many of your financial worries!
Help yourself by taking action on your finances now – read the books, listen to the podcasts – and read blogs like this (well done you made it to the end!)
By following these tips, you can start to worry less about money and the future, and focus on enjoying life today!
For more information or for one-on-one support, set up your free clarity call now. Together we can plan a bright future where money doesn’t control you anymore.