Financial Peace Of Mind Is Possible!
People everywhere are under stress. Stress of all kinds but there is little doubt that one of the most common and more extreme forms of stress today is financial stress. So what’s the answer?
Financial peace of mind is possible and can be within your reach. It doesn’t happen automatically. If you want financial peace of mind, you must take the steps necessary to achieve it.
Here are some suggestions that will help you get a great start on your journey to financial peace of mind.
Aggressively Pay Down Debt
If you have income that can go into the market or towards paying down your debt, now is a great time to tackle your debt. I personally will be applying income towards paying down my mortgage, which will give me a 5.83% guaranteed return on investment. If you have credit card debt, or other high interest, unsecured forms of debt, they should be your first priority…
Analyze your Monthly Recurring Expenses & Trim the Fat
Most recurring monthly expenses come in the form of entertainment that you don’t necessarily need. These non-essentials really add up over time. For instance, do you need to spend $90 per month on cable or satellite TV, especially when digital TV will soon be accessible to all for free? Look at your monthly expenses and look internally to see if you really NEED them. Movie rental subscriptions, magazine subscriptions, newspaper, cable or satellite TV, land line phone, cell phone data plan, etc…
Keep More of your Paycheck
If you are getting a large tax refund every year, but struggling on a month-to-month basis, you may want to consider raising your tax allowances. The more allowances you claim, the less the government holds onto over the year and the lower your refund will be. This allows you to use more of your earned income over the year instead of giving an interest-free loan to the government…
Increase your Emergency Savings
Perhaps it is time to increase your emergency savings account as a safety net in the event of a family member losing income due to economic slowdown. Experts typically recommend that you save six months worth of living expenses, however, in times like this it may be wise to push it to a year or more if you have the means to do so.
– via 20somethingfinance.com
More Practical Steps Toward Financial Peace of Mind
Here are three more very practical steps you can take to increase your financial peace almost immediately. If you experience financial stress, don’t put off making a change.
Your life is precious and your time is limited. Take these steps and increase your peace so you can enjoy your days and your life!
Pay your bills as soon as they come in.
This is one of the easiest ways to eliminate stress over bills. When you get your power bill, write a check, put it in an envelope, and mail it the next day. Or if you bank online (and you should), go to your computer, log in, and send your electronic payment. To do this, you’ll need to develop a bit of a cushion in your bank account, so you always have enough to pay the bills as they come in.
Make your payments automatic.
I’ve covered this before … it’s an great alternative to the above method. Instead of paying bills as they come in, you can set up automatic payments and automatic savings payments online, so that as soon as your paycheck comes in, your bills get send out and a certain amount is transferred to savings (or investments). Either method works great.
Talk about money with your partner.
Money can be a huge stressor on a relationship. It’s important that you talk about money on a regular basis in a non-emotional way, as hard as that may sound.
It’s crucial, in fact, to the survival of your relationship. You both have to be on the same page, or you will eventually argue and have major crises about your finances.
You need to talk about your financial dreams and goals, your spending patterns, your budget, your income, your savings, debt, financial security, bills and the like.
If you don’t already do this, it may take awhile in the beginning, and be difficult. But try to do it as a team, and not accuse each other of anything, don’t blame, and try to be positive and constructive. Over time, it will get easier.
At the minimum, devote 10-20 minutes each week to reviewing your finances together, reviewing your goals, and making sure that you’re together and seeing eye-to-eye. It will make a major difference in your relationship and in your stress level.
– via zenhabits.net
How much financial stress do you feel each week? Can you begin to take one of these steps toward financial peace today?