Money problems and high stress levels are intrinsically linked. It's hard to feel content in your day-to-day life when you don't know whether you can afford all the bills that month, or if you'll ever find yourself out of debt.
While full financial management takes some serious time and effort, there are simple moves that still make a big difference. Even taking a small piece of the load off your shoulders can be enough to make you feel more confident and in control.
If you are struggling with your finances and it's affecting your mental well-being, here are seven moves you should be making. These aren't about making drastic changes. Instead, they are small changes that will lead to healthier money habits, better repayment management, and simplified monthly spending.
1. Streamline Your Monthly Finances
Streamlining your monthly finances is a simple way of making life less stressful because it gives you an overall clearer outlook of your money (and where it actually goes). With a transparent look at your money, you feel more in charge. There are a few ways you can do this.
- Set up automatic payments: Set up payments for any recurring bills that go out of your bank account, including money into your savings.
- Debt management: If you have a lot of repayments to make to different companies, debt consolidation can make things much clearer for you. There are even services you can use to consolidate all your debt into a simple monthly payment that lets you pay less than you would have otherwise.
A service like Achieve is a good stepping stone to a debt-free future. The team at Achieve are experts at negotiation and takes the job of simplifying any debt that you owe. Then, they create a crystal-clear monthly repayment plan that takes between 24 and 48 months. Not only does it make seeing your outgoings easier, but it also puts you on a path to less (or no) debt. The application process is easy, and you can reduce the amount of debt you have without a loan.
2. Get a Budgeting App
Most of the world spends time on their mobile phones. So, it makes sense to use that device for better money habits. In particular, downloading a highly-rated budgeting app that will give you a clearer picture of your income and outgoings.
Everyone will have their own goals when it comes to a good budgeting app. Some features to aim for include:
- Bank account integration: This one really is a no-brainer. Bank account integration allows you to sync your bank account with the app for more streamlined money management.
- Real-time tracking: These apps give you updates in real time related to your balance.
- Goal tracking: With a goal tracking feature, you can see how close you are to saving up for something specific, whether a getaway or a new car.
- Subscription management: Subscriptions can quickly eat away at your spare money each month, and a good budgeting app will have a subscription management tool within it so you can better manage what you're subscribed to.
The reason a budgeting app works well for modern individuals is that people are already spending time on their phones. If you open your phone and see the app there (or it sends you notifications), you are more likely to keep up with it, whether that means inputting your spending habits each week or checking up on your next bill payment.
3. Invest in the Right Insurance Cover
Insurance is a safety blanket for the unexpected moments in life. Here are the most common types of insurance that most people should try to have.
| Purpose | What it Covers | What Triggers the Payout | |
| Life Insurance | To provide financial security to dependents. | Funeral expenses, lost income, debt repayments. | The death of the policyholder, assuming terms are met. |
| Health Insurance | To pay for medical expenses. | Hospital visits, doctor visits, prescriptions. | An illness or injury. |
| Homeowners/Renters Insurance | Protection of the home. | The home's structure. In some cases, personal property. | Damage from natural causes like flooding or fire. Also, potential lawsuits. |
| Disability Insurance | Income replacement when you cannot work. | A percentage of the policyholder's usual salary. | An injury or illness that prevents a person from being able to work. |
4. Use Separate Bank Accounts
Using a single bank account for all your money activity is a fast route towards complicated finances. Ideally, you will separate them, especially if you run a business. Here are the types of bank accounts you may want to open:
- A personal bank account
- A business bank account
- A joint bank account
- A savings account
5. Use the Sleep on it Rule
The sleep on it rule means that you must sleep at least once before purchasing something large. For example, something over $50. By sleeping on it, you give your brain a chance to escape the in-the-moment excitement you might feel at the prospect of buying the item and instead think about it logically.
Some questions to ask yourself after you have slept on it and are still unsure:
Do you think you'll use it in your daily life?
If yes: This is a clear sign it's a reasonable investment. For example, if you want to buy a coffee machine that you'll genuinely use daily because of your need for a morning cup of joe.
If no: While this doesn't mean you definitely shouldn't buy it, consider when you will actually use it.
Do you already own something similar?
If yes: Think about whether the item you already own does a good enough job, especially if it isn't broken or in dire need of replacement.
If no: Then it might be a good investment, but you should still think about whether you actually need it.
Do you have space for it?
If yes: That's good, as it's important to have room for new purchases in your home.
If no: Then you shouldn't buy it.
Will this item bring value to your life?
If yes: You'll usually say yes if it's something that cuts down on time, saves you stress, or just overall makes you feel happy. If that's the case (and you can afford it), go for it.
If no: Items tend not to add value if you are only purchasing them to maintain a certain image or show off. Avoid these kinds of purchases.
Can you afford it?
If yes: If you can afford it, there's little risk in making the purchase, especially if it adds value to your life.
If no: Then don't buy it, even if you have a credit card. Make it a habit to only purchase what you can actually afford in cash.
6. Talk More About Money Problems (and solutions)
Some people have an ingrained rule that they do not talk about finances, even with the people they trust most in the world. The truth is that this only makes you feel worse. It's not just about sharing the problem, but it's also about allowing people to help you come up with an active solution or plan, which is especially crucial if you are in a lot of debt or struggling to pay your mortgage/rent/bills each month.
Who should you talk to about finances?
- Your partner: If you are a two-person household with a partner, it makes sense that the person you talk to most about finances is them. Avoid keeping things a secret, especially when you feel overwhelmed. For example, if you're drowning in debt, it's best to let your partner know sooner rather than later so you can tackle it together early on. Your financial life affects theirs.
- A financial advisor: If you need a clearer financial roadmap for the future, speak directly to a financial advisor , as they will provide expert advice surrounding things like investment strategies, tax efficiencies, and planning for retirement.
- Service providers: If you are struggling to pay for something like utility bills, it is always best to reach out to the utility company before you miss any payments. There is a chance you can come up with an agreement. Alternatively, you may be able to shop around and find a better deal that's easier on your monthly budget.
7. Unsubscribe from Subscriptions
In recent years, subscriptions have slowly but surely become more common. At first, the idea of paying $10-20 a month for a service you genuinely enjoy doesn't seem too steep. If you end up subscribing to multiple services, however, that number can quickly rise and reach a point where it leaves you more out of pocket than you'd like.
The good news is that there is a simple solution, and it involves unsubscribing from all the subscriptions that you no longer use. If you subscribe to too many to manage by yourself, there are dedicated services that can help you, such as Rocket Money (which cancels unwanted subscriptions).
- Quick tip: If you subscribe to multiple streaming services, try the rotating method. This involves subscribing to one for one month, a different one another month, and then another one altogether the following month. For example, Netflix, Disney+, and Amazon Prime. It means paying less but still eventually gaining access to the various libraries.
Don't Let Financial Stress Beat You Down
Stop letting financial stress overwhelm you. While you may not be able to get out of debt instantly or suddenly have enough savings to cover all emergency costs, there are moves you can make today to improve your financial future. Any of the 7 examples listed above puts you on the path to money management.
