There is nothing like financial woes to ramp up the stress in your world.
Everything seems to revolve around your lack of options, income insecurity, and the persistent worry that your financial recovery may not be as swift as you hoped.
If you notice that you aren’t sleeping or eating well because money is always on your mind, financial stress has a hold on you. If your finances are affecting the way you feel about yourself or relate to others, take a look at what’s going on in your financial house.
Consider the following 6 common reasons for financial stress to see if they apply:
1. Are you living beyond your means?
Your money and your lifestyle don’t have a lot in common. In fact, they don’t really know each other at all. You kept meaning to introduce them, but you know if you do, your lifestyle will probably head for the door. You’re stressed because you know you can’t afford to continue keeping up appearances without a lot of pretending and payday loans.
2. Are you barely living within your means?
You suffer from insufficient funds. Always. Pay check to pay check rules your financial world. Every expense, payment, and extracurricular activity is planned by the 15th and the 30th of each month. There’s no room for error. There’s also no financial room for emergencies, savings, vacations, or a deep breath.
3. Does debt keep you treading financial water?
You hate it, but you can’t stop paddling around in an ocean of financial obligation for fear the credit card bills, loans, and IOUs to family and friends will drown you. You’re barely getting anywhere, trapped by fees, embarrassment, and unexpected life events that keep throwing off your plans to pay things off.
4. Will your rainy day fund keep you safe and dry?
You meant to save. You kept putting money aside…but then something really important came up, and you dipped in the till too many times. Now, the little you’ve put aside will barely cover an umbrella. Stress levels are rising as you feel the pressure to save more and spend less. College tuitions and retirement loom ahead; but it’s a whole lot harder to save with a lot less time.
5. Does job insecurity have you walking a financial tight rope?
The economic events of the past decade and a half have shown you that lay-offs and ongoing career uncertainty are the reality for today’s employee. You may ask yourself whether you can afford to hedge your financial bets on such an uncertain future. Buying a house, pursuing a dream, even taking a vacation, seems risky when you’re not sure how long you’ll be employed afterward.
6. Does a refusal to budget keep your financial life on the edge?
A monthly money plan could make longer term financial planning achievable. It could help you reign in your spending, set realistic goals, and reduce financial friction between you and your partner.
But you haven’t done it.
And you’re constantly nervous or caught off guard when the bills roll in.
Are you financially misinformed, undereducated, or misled?
A huge part of financial stress is knowing, deep down, that you simply don’t know how to make money work for you.
As the years wear on, you want to know that the career hours you clocked are actually of value.
It’s not enough to dump your financial life in the lap of an advisor.
Though seeking professional advice is a good idea.
It’s more important that you obtain the financial education and foundation. Soon, your knowledge will support better habits and secure a less stressful future.
Denise Kautzer is a Licensed Professional Clinical Counselor and a Certified Public Accountant whose practice is located in St. Paul, MN. You can view her website at www.denisekautzer.com or contact her at denise@denisekautzer.com