You don’t have to go far to find people who are stressed about money. In fact, a recent survey I commissioned showed that up to 40% of Aussies believe they will have to work longer due to the financial effects of COVID-19. That fact alone would be causing a lot of stress for people.
But the even bigger stress for most of us is right now: how to juggle this bill, pay that, and keep it all together. So how do you get on top of it all? While the obvious answer is to earn more, that is not always an option. So, with what you have, here are some ways to mentally get around the challenge of money related stress, and start focussing on more positive areas of your life.
1. Understand your true situation.
Exactly how much debt do you have? What are all your monthly payments? Then you can do a true assessment of your financial situation. Many of us don’t know the true figure, as you are not taking into account bills that arrive quarterly and things that are bought annually like presents.
Take everything into account – you can use a budget calculator that has been built for just this at MoneySmart. This gives you the power to make decisions about your life beyond 2020. Can you live somewhere less expensive? Take public transport? Whatever the decision, at least you have the power to make them and lower your stress by being informed and thinking of a plan of Christmas and into the new year, instead of just worrying.
2. Start thinking what you can do differently.
Obviously the big bills have to be paid to live. But what about things you don’t have to spend on? This year for Christmas our family has agreed for the first time not to give gifts for the adults, and just buy something for the kids. None of us need anything and it is a big saving not to spend on gifts.
We would rather focus on the time together and eating food and being merry. Having these conversations with family can do wonders for lowering your stress.