Proper Care and Feeding For Your Piggy Bank

It will be no surprise to hear that constant stress affects your wellbeing. What you may not know is that financial worry is the number one cause of stress in America today. As you can imagine, the chief source of financial stress comes from debt—lines of credit, mortgages, and credit cards — which can affect your ability to stay current on your monthly expenses, not to mention save money.

According to health studies, financial stress can contribute to major health issues like headaches, trouble sleeping, high blood pressure, and anxiety. Common symptoms of financial stress include irritability, anger, fatigue, decreased sex drive, and an overall lack of motivation.

If you recognize any of these symptoms in yourself and often have money on your mind, it may be time for a financial fitness refresher.

Getting a handle on finances may feel daunting. But just hoping things will work out can keep you feeling overwhelmed. There are, however, simple steps you can take that will help improve your financial outlook and alleviate stress. When you start taking small steps, you will feel stress begin to wane and confidence and well-being take its place.

Pro Tip: Stay current. Bring your checking account up-to-date each week and look at which bills are coming due. This will keep you aware of exactly where your finances are and help you avoid overspending.

Here are four clear steps you can take to help feed your piggy bank:

• Create a spending report– Start by making a list of everything you buy each month, and your expenses—from major costs like rent to smaller ones you don’t usually think about, like coffee and nights out. Keeping an eye on unnecessary purchases can reveal hidden sources of money that could go toward paying for more critical needs such as mortgage or rent.
• Work towards paying off credit card debt– When you buy on credit, you’re betting on the possibility of future income. If that income fails to appear, anxiety about being able to pay creditors will add stress to your life. Eliminate money fears by paying off creditors and only buying what you can afford to pay for in cash.
• Build a rainy-day fund– Accumulating three to six months of living expenses will decrease your fears about not being able to pay bills. You can build a rainy-day fund by foregoing non-critical purchases like restaurant meals and minor luxury items such as electronic gadgets and designer clothing.
• Automate– If you haven’t already done so, automate your bill paying and savings. The more you automate, the easier it will be to manage your finances.

If money management isn’t something that comes naturally to you, or it’s something you don’t enjoy, consider the emotional payoff. Think about how much worrying over your finances impacts your daily life. Now, imagine how you’ll feel once your finances are better under your control. You can create that peace of mind, and a more stable financial foundation by focusing day by day on how you spend and save.