Published On: Sun, Sep 27th, 2015

3 Financial Tools to Help Reduce Stress

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I recently found an old letter that I wrote to myself when I was very broke and extremely stressed. I wrote the letter and saved it so that I could look back and laugh. I knew that I would make it through that stressful time eventually. I was stressed because I needed to take care of the brakes on my car but I had no money! I was so scared that my brakes were going to give out on me before I had the chance to pay for them to be fixed. If I had simply saved some money in an emergency savings account, I could have saved myself the stress.

Money and finances are the top stressors according to the American Psychological Association. They recently released the Stress in America survey. According to the survey, 72% of adults report feeling stressed about money at least some of the time. Millennials are feeling this even more; 75% consider money to be a significant source of stress.

A Budget Can Reduce Stress

Organizing your finances can minimize the time you spend thinking about your finances. Once you have your bills in one place, your due dates scheduled, and as many payments automated as possible, you can relax a bit. A budget is simply a plan for your money, the income and expenses. Figure out where your money is going then automate the payments. Using an online banking account can help you manage your budget easily from anywhere at anytime. For example, some online banks offers an online savings account that includes a low minimum opening deposit with no minimum balance or monthly maintenance fees. This flexibility can help you manage your financial stress.

A Rainy Day Fund Can Reduce Stress

If I had taken the time to save a solid emergency fund then I would have felt less stress in my situation. For some people, just thinking about saving for an emergency fund can be stressful, but making savings a priority can help reduce stress. Here’s a painless way to save a quick emergency fund. Set up an automatic withdrawal from your checking to your savings. You can do this very easily in an online savings account. Choose a small amount, maybe 20 or 50 dollars and create a recurring transfer each month or every two weeks. Within a month you will have 40 to 100 dollars saved. As long as you don’t need that money in the first year, you can save a solid chunk of funds for your emergency savings account.

An Accountability Partner Can Reduce Stress

Getting organized and setting up a plan is the easy part, keeping up with that plan can be difficult. However, an accountability partner can help. Talk to someone that can encourage you on your financial journey. Write about your journey if you would prefer or start a blog.

Don’t allow money and finances to stress you out. Set up a budget, build a rainy day fund, and find an accountability partner to keep your stress levels low.

 

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LaTisha Styles

LaTisha Styles is a motivational speaker, millennial money expert, and spokesperson specializing in simple finance for millennials.
LaTisha is the producer and host of Young Finances TV, a weekly series featuring funny, insightful videos on the basics of personal finance. LaTisha has been quoted in Forbes and Mainstreet, featured in The Economist, and mentioned in US News as a top personal finance expert to follow on Twitter.
You can follow LaTisha on Twitter for daily millennial money tips to budget, invest and achieve success!
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About the Author

- LaTisha Styles is a motivational speaker, millennial money expert, and spokesperson specializing in simple finance for millennials. LaTisha is the producer and host of Young Finances TV, a weekly series featuring funny, insightful videos on the basics of personal finance. LaTisha has been quoted in Forbes and Mainstreet, featured in The Economist, and mentioned in US News as a top personal finance expert to follow on Twitter. You can follow LaTisha on Twitter for daily millennial money tips to budget, invest and achieve success!

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Did you know?

African Americans are significantly more likely to have some type of debt (94%) compared with the general population (82%). Credit card debt, student loan debt, and personal loans are all significantly higher in the African American community.

Source: Prudential’s 2013 "African American Financial Experience" study