Have you ever been stressed out because of finances? If you have, you’re not alone. According to a recent study, 72 percent of Americans reported feeling stressed about money at least some time in the month prior to the study. And because stress can have such a huge impact on our health (both emotional health and physical health), I decided to put together a list of my top 5 tips to stay afloat financially.
Spend Less than you Earn
Although this one seems simple, it can be a lot harder to execute than it sounds. If we don’t plan out how we are going to use our money before we start spending it, we can watch it go down the drain quickly until we are all out of money and praying that our next paycheck comes before our rent is due. Even making a mental note at the beginning of the month to start spending less can go a long way.
Start a Savings Plan
To build off of the first tip, a savings plan can really boost the amount we save after each paycheck. As said by Antoine de Saint-Exupéry, “A goal without a plan is just a wish.” If we want to make a change in the way we spend money, we need to make a plan. This can be done easily by first calculating how much money you have coming in, then subtracting that number by all of your necessary expenses (rent, food, gas, etc.). The amount left over is what you have available to save!
The amount of money from that number that you choose to put aside is your choice, but once you set that plan, stick to it! You may even want to find a friend or family member to keep you accountable if you feel you need some extra help and encouragement.
Invest Your Money
Once you have your savings plan down, and you have a good cushion of money in your account, you can then choose to take a portion of that money and use it to invest! Although investing can be intimidating to new users, there are many easy tutorials and YouTube videos that can help to break it down. I personally like to use the eToro trading app for all of my stocks, but there are many other great beginner options as well! If you would like me to create a post on this topic alone, let me know in the comments! I would be happy to make a step-by-step tutorial for anyone interested.
Have a Side Hustle
If you want to get ahead financially, you have to be bringing in more than you are spending–a great way to do this is to pick up a side hustle. If you find yourself feeling skeptical, check out these statistics!
- 65% of self-made millionaires had three streams of income.
- 45% of self-made millionaires had four streams of income.
- 29% of self-made millionaires had five or more streams of income.
As you can see, many financially successful people have multiple streams of income. Even if it only brings in a few extra dollars a week, those few extra dollars can add up to be some fun spending money if you are consistent about it.
Pay off Your Debt
In the world we live in today, spending has never been easier. Not only can we swipe our credit and debit cards, we can also pay by using only our phones! Although it does wonders for convenience, it can also leave us spending a lot more than we may have initially planned for. If you have found yourself racking up more debt that you feel comfortable with, make a plan to pay it off. Whether it takes a few days, a few months, or a few years, having a plan set in place (and sticking to it) can really help you to feel relieved when it comes to debt.
I hope these tips were helpful! Let me know if you would like more content like this in the future by leaving me a comment below!
Mind & Body 