One of the worst situations anyone would love to find himself is having financial worries. A little shakeup in your finances can build mountain of financial worries. In order to avoid this mess, I will share with you some of the causes of financial anxieties and how to beat them in their own game.
Beating Financial worries!
Be sure to be proactive with your financial planning as this is the best way to conquer financial stress.
1. Unemployment or lower than usual income.
Its feels very bad to wake up each morning looking to get spendable cash from friends and family. Or rather using credit for living expenses on reduced income doesn’t feel great as well.
At one time or the other; you might be face with reduced income due to unemployment and thereby be forced to live on your savings. This is why it’s very crucial to have multiple such of income and to have a solid saving plan.
A good saving plan and alternative source of income is very important to avoid having into financial worries.
2. Unexpected illness or accident
Increased medical expenses can put a lot of strain on your finances, which can result into financial worries. And low/no income
Emergency fund should be part of your saving plan. This helps you eliminate financial worries by getting you prepared ahead of raining days.
3. Moving out on your own
‘I have had enough!’; ‘It’s time to be a man!’
Does that sound like you? Moving out can be a great move but needs to be well planned for.
You need to realize that the high standard of living you are used to, took your parents decades to achieve.
First go through the financial implication of moving out. Moving out without proper planning can result into financial worries. So, don’t put yourself into that mess.
4. First baby is born
Most people make the mistake not to budget for the increased expenses and the drop in income during maternity leave.
Having your first baby can put you into financial worries if you did not carry out adequate planning for the arrival of the child. This is largely due to the fact that most people think that baby’s needs are very minimal and should not necessarily be planned or budgeted for.
Like every other aspect of your life. Having a baby is very vital and should be well plan for; especially in financial terms. If you are someone who knows the benefits of budgeting, having a baby will not put you in financial worries.
Think about the material needs of the child, health care, feeding and so on. And, never forget that you’ll most likely get half of your family income, as in most cases the income of the woman is affected drastically.
Going through divorce can be a real pin in the butt coupled with a lot of financial worries. Divorce comes with lots of financial adjustment that will ultimately results into a whole new financial structure for you.
This can bring about lots of financial stress especially if your income or finances depends on your partner. And in most cases your finances will either be fully or partially dependent on your partner.
Paying divorce settlement can as well bring lot of financial worries. It brings about extra financial burdens.
Got the house but can't afford the ongoing expenses on only one income; left over bills
Retirement is inevitable in one’s life and thus requires proper financial planning. The largest percentage of retirees today lives with financial worries. In fact, over 95% thus.
There are a lot of reasons why most retires are in financial worries. Many don’t save, others never plan. While some are asset rich and cash poor. You can no longer afford to live life plus pay the house upkeep on your reduced income.
I recommend that you check out this article to prevent financial worries in your retirement years.
7. Emotional attachment to something
You are not willing to part with something you can no longer afford: could be a home, business, vehicle or toy. It is financially wise to know when to let go of something you can no longer afford. And, in most cases; these things are not necessity of live.
To avoid financial worries building up in your life, let go of the things that your finances could no longer accommodate.
8. An addiction
Over the years, I have seen lots of people who squander a lot of money to satisfy their addiction. Many spend on drugs, drinks, and most commonly gambling. Huge amount of invest-able money has been lost to lotteries and betting games.
This had brought financial worries upon millions of people. Try as much as possible to control your addictions.
Spending more than you earn trying to satisfy the addiction results into financial anxieties, so watch out.
Molehill of debt, they say build mountains of worries. The greatest financial worries are caused by debts. A man in debt is a man caught in net. If you want to be financially free and live a live without financial worries, you must avoid bad debts like plague.
Over To You
So, what are the other advises, tips, strategies, techniques or methods that have worked for you? Please share with us in the comment below. Believe me; I sincerely value your opinion more than mine.
And don’t forget there is love in sharing!