Tips to reduce your money worries
Do you often lie awake worrying about your finances? This can stem from being in debt, not earning enough money, the expense of raising kids, or even being in a relationship with someone who isn’t too good with finances. This causes financial stress and it might be getting the better of you. But, you can fight back!
If you can reduce your financial worry, you will be able to focus on other important areas of your life and relax, knowing you have a plan to handle your financial situation. Here are a few things you can do now to relieve your financial stress and make it easier to function in 2020.
- Consult a financial advisor
If you are unsure about how best to structure your financial life, seeking the help of a financial advisor can be very beneficial. A financial advisor can help you to organise your finances and forecast the outcomes of your current financial decisions. This will give you a clearer picture of your finances, and your ability to deal with life’s unexpected events, which should reduce your stress levels immensely.
- Start budgeting
Budgeting allows you to decide when and how you’re going to spend your money each month. You might already know the necessity of budgeting, but do you know exactly how to put one together and, most importantly, stick to it? There’s one simple rule that will help you to organise your finances for good: The 50/20/30 rule. Read all about it here.
Although the first few months of budgeting might be tough, once you get the hang of it, you’ll begin to see many of your money worries disappear.
- Set up an emergency fund
January comes with lots of expenses. You would have received your salary quite early in December and if you succumb to the many festive season temptations to overspend, January could be a very tough month for you.
This is why an emergency fund will come in handy. Between school fees, groceries, uniforms, stationary and transport costs, having money saved can reduce your money worries because you’ll have the confidence that your savings will cushion you. Here’s how you can get your emergency fund started.
African Bank investments are great for setting up your emergency fund. They give your money the impetus to grow with SA’s best rates, and access to your money based on your needs and goals.
- Live within your means
The top cause of money stress for many people is having expenses that exceed their income. If you know that you do not make enough money to keep up with your current monthly expenses, decide on a plan of action to change the situation. This might include making some lifestyle changes, or getting a side-hustle to complement your monthly income. Click here for a list of side-hustles you could consider doing.
- Get rid of debt
If you’re in debt, it’s easy to be consumed by worries about money. This is where debt consolidation loans can really help! Debt consolidation means combining all your debts into one easy-to-manage amount.
There are many banks that offer this type of loan. At African Bank, the process is simple: After completing an online loan application for a consolidation loan, an African Bank consultant will contact you to explain the approval process