How to Cut Your Money Stress in Half — By Doing Just One Thing
I just reduced mine.
Often the advice you can read about is directed at people with big savings in their finances.
Baby boomers already know how to handle money. Young people still don’t. Because many young people have lower incomes and therefore fewer opportunities to save money, it can be very difficult to make day-to-day finances work.
Of course, it is bad that so many young people are stressed by all these saving tips.
In the worst case, this can cause the savings to go unused, and instead, all the basically well-intentioned advice becomes a bad thing in their lives.
Reading About Personal Finance Will Reduce Your Money Stress
Many people feel stressed by advice (in a good way) about saving. And you can summarize it briefly as the younger you are, the more stressed you get with the advice. I understand this perfectly.
For people with enough room in their finances to spread out their savings, the tips serve a purpose. For others with little opportunity to manage even small savings, the tips, only lead to stress.
I consider the fact that many people feel stressed about savings advice with all common sense and think it is a personal failure.
So much so that I could not explain it better and direct the communication to those who need it badly. It is important to be able to get information that can lay the foundation for sound financial behavior.
Knowledge leads to habits and routines around personal saving, which are important components in making the economy work.
In my position as a writer, I’ve been asked how much it costs to open a savings account. Not once, but several times. I don’t mention it to complain.
That question becomes another reminder that information about housing finance and savings is not so easily accessible to everyone.
And how easy do we make it for those with little knowledge?
Sometimes I get the feeling that ignorance looms large, and thus becomes an obstacle. Maybe part of the problem is that we tend to make it complicated with finance and savings. And this makes people with little prior knowledge have difficulty absorbing the information.
If basic knowledge is lacking, it will be difficult and probably embarrassing for the person in question. It is “embarrassing” not to keep up with discussions about key interest rates, inflation and mortgage rates, and more.
There is a risk, without knowing for sure, that the group without basic financial knowledge will lose important information and become even less equipped for the future when a safe becomes an increasingly important tool.
Small savings are better than nothing.
Start by analyzing your income and expenses, looking for expenses that you can reduce.
Don’t set a savings goal that is too high. Set intermediate goals and feel free to save for something concrete.
Prioritize putting money away in a savings account with interest and a deposit guarantee until you have a certain savings buffer. The money may not increase in value as much, but it is not at risk of decreasing either.
When you are a little ahead, you can consider expanding your savings by buying stocks or funds as a supplement to the savings account and reserves. But remember that the stock market can go up and down.
Read more financial newsletters. Learn more. Worry less. See what works. What doesn’t work, leave it behind.
Not everything is for everyone. Some want it, others don’t.
Enjoy your money.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.