Are you a worrywart? Do you think about money when you should be sleeping?
If you are like I used to be then if you don’t have control over your money and you are living paycheck to paycheck then you are losing sleep. Learning how to stop worrying about money will give you back that sleep.
The worry about how you will manage this month, next month keeps you awake and churns in your mind during the day. This a horrible place to be and isn’t healthy for you.
We need to get you out of this worrywart state and into a better place. One where you can learn how to stop worrying about money and get rid of your money stress.
When you feel like you’re living on the edge it can be hard to plan out and see your finances clearly but once you have done this you can stop worrying and start living. Follow these guidelines and start sleeping easier at night.
How to Stop Worrying About Money – Banish Your Worry With These 15 Simple Tips
Pay yourself first
If you’re going to stop worrying about money then you need to be reassured you have got some money saved. Paying yourself first is about your goals, your future and your retirement.
If you are stressing about money then until you put yourself first you will continue to stress. If you don’t pay yourself first then your ability to save your money will be reduced as you will spend the money in your account.
Very few people can save decent money every month when it’s sat in your everyday account. If your money saving plan is for £200 a month then set up an automatic payment to save this into a separate account straight after pay day.
Be kind to your future self
Don’t get stuck in the present and fall into the trap of YOLO and only think about the now. Think about the future. You in the future – your future self – will also need money.
You’re not going to want to work forever and state pension/social security does not pay as much as you probably want or need. Plus you might lose your job, cut your hours etc. Decisions you make now will impact your future self.
Make them sensible decisions.
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Don’t get into debt
The biggest mistake you can make is to go into debt to fund your lifestyle. You get used to living at a higher level so trying to pay it back is incredibly hard and every day your money feels tight.
Debt will keep you awake at night. Taking steps to clear your debt is key to you learning how to stop worrying about money.
A mortgage is the only debt ideally you want to have, and that’s only because it’s almost impossible to save enough to pay for a house in cash – if only house prices were that cheap!
Many people have credit card debt. Credit cards aren’t bad, indeed you can earn money with them, but always pay off your balance in full every month.
Give yourself a budget
And stick to it! Having a budget means you are allocating your money to various bills, savings and fun money spending.
You need to budget in order to then track your spending and know whether you are on track to achieve your budget.
Your budget will reassure you that you have enough to pay your bills and eat each month and you will stop worrying so much.
Stop emotional spending
Many people are influenced by their emotions. Some people are emotional eaters, and some people are emotional shoppers. It’s a bit like the saying – don’t go shopping when you are hungry as you’ll buy more food.
Don’t shop when you are having a blue day. You’ll spend more trying to make yourself feel better which won’t last because you’ll later feel bad for spending too much money.
Same goes for when you are celebrating or having a great day. Don’t go spending as you’ll treat yourself too much as part of those celebrations.
Keep your taxes down
We all have to pay our taxes and they in turn for much that is in our interest in our daily lives. But you can legitimately reduce your taxes and keep more of your money. Make sure you know your countries tax efficient laws.
Here in the UK you can save into a pension and get tax back from the government. We also have tax free ISA savings. In the US the 401k and/or a Roth provides for tax efficient savings.
Have a rainy day fund
Having money you can access as soon as you get hit with an unexpected bill is such a relief. No need to worry about how to pay such a bill, you have the cash you can pay it.
When life throws you curve balls having that emergency cash will help you deal with whatever the problem is without stressing about the money side.
Your rainy day fund should be $/£1000 to start. And ideally you want to work up to 3/6 months living expenses in case you get the ultimate curve ball and lose your job.
If losing your job is a worry and you want to stop worrying about it, build your rainy day fund up to a reassuring level.
Live below your means
If you live paycheck to paycheck you’ll never get ahead and never be able to pay yourself first. Nor will you cope if you have an unexpected emergency as you won’t have built up a rainy day fund.
When you first start working you might be on a low wage. As your paychecks get bigger don’t allow your lifestyle to creep up so that you are spending all of your new raise.
Living like a student will save you thousands. Although maybe you want to be somewhere between a student lifestyle and an excessive one!
Key thing is, don’t spend all your wages always save some, for your future self, for a rainy day fund, for retirement. If you do all that you’ll be in great financial shape!
You pay an absolute premium for buying new. A new car loses up to 30% of it’s value as soon as you drive it off the dealerships forecourt. Same goes for expensive tools and even new build houses.
Buy used and you will save a fortune. Buy a car that’s 3+ years old. Check out Ebay or your local Facebook group for used items. Hit the charity/thrift shops for new to you clothes.
This is an easy way to save money on stuff that you’re going to buy anyway.
Related post: create your own work uniform
Track your spending
If you track what you spend and what you earn then you will know what financial page you are on. Knowing where your money is going is key to making good decisions and being able to stop worrying about money.
Don’t keep up with the Joneses
They are in debt and living beyond their means. Nor are they happy. Their lifestyle is not real, it’s a castle in the sand and at any moment could be washed away. That is not how you want to live.
The Joneses have loads of stuff but has it made them happy? They can’t be happy if they keep wanting more.
Be happy with what you have
So many people have less than those around us. We often fall into the trap of always wanting more: the newest phone, the latest TV, a bigger house.
We are always chasing after more and not stopping to look around us and be grateful for what we have.
Learning to be happy with what you have is very freeing. You are free from the constant strive and desire for something you don’t have. You are free from worrying how you can afford the more expensive option.
Learn to enjoy what you have and you’ll stop worrying so much as you’re not chasing after the Joneses.
Nurture your relationships
Having strong relationships with your partner, family and friends around you will really help you in your quest to learn how to stop worrying about money. Being able to talk about your worries will always make you feel better.
“A problem shared is a problem halved”
Friends and family can often provide nuggets of wisdom that you might not have heard before. They can share their experiences which you can learn from.
Most people at some point in their lives have worried about money. Support your friends and family with their problems and they will return the favour.
If you have furry friends, there is nothing better than getting out for a walk or snuggling up on the sofa with them.
You have your health
Worth more than all the money you can earn and some. Without health you have nothing. You can’t earn money if your health is bad (or worse!)
Money can make your health a little bit better or more comfortable but it certainly can’t buy you good health. Putting your health first, before money, is a key part of learning how to stop worrying about money.
Worry and stress are actually bad for your health. Stop worrying and your health will improve as will how you feel.
Can’t take your money with you
You need to spend your money wisely and ensure you have enough for today and your future self. But there is no point in having 2 million left on your death bed.
Nor is there any point slaving forever to get those millions if you cannot enjoy them because you are too ill or old to do so. Everything in moderation is a great way to view most things in life.
How to stop worrying about money
Following all or some of these tips really will help you learn how to stop worrying so much. Money can rule your life when you don’t have enough or don’t have control over it.
Take back control of your money through following these tips and learn to love your life and sleep easy at night.