Watch this short video on how CleveDoesMore will help you stop your money worries.
Learn How to STOP Your Money Worries!
Did you know that nearly half of us have tossed and turned all night as we worry about money, according to a 2018 Financial Planning Standards Council report on financial stress. Money concerns are closely linked to relationship problems and mental health issues, according to the Canadian Mental Health Association.
In addition, the association reports that 1 in 5 of us will experience a mental health problem in our lifetime. Worse yet, the problem is circular. Poor mental health makes it difficult for us to manage our money. The worry drives even more health problems, further damaging our ability to make day-to-day money decisions.
It’s not all bad news, though. There are many ways to break this cycle. And there are resources to help you.
A Secret Problem
Becky was always anxious. Friends and family noticed her declining mental and physical health, but no one was quite sure what the root cause was. Becky, like many of us, kept her money woes private. Her closest friends didn’t know that she worried about keeping up with the bills and she never talked about the stress that came from resisting the temptation to spend today and worry about the credit card debt later.
Becky was doing her very best to invest for the future, but was never quite sure if she was doing enough. It wasn’t until she met with CleveDoesMore that she realized the immense toll that worrying about money was taking on her health. She made the wise decision to break the worry cycle in her life and take back control of her finances once and for all.
Here are five things that helped Becky stop worrying about money, and keep her finances on track for success!
Tip # 1
Create A Written Budget
I’ve said it before and I’ll say it again, creating a written household budget is essential. This is a critical step to understanding how you spend your money and to making sure you prioritize what’s important to you. The classic formula is to allocate 50% of your after-tax income for your needs and 30% for the things you want. The remaining 20% goes into savings.
Tip # 2
Pay Yourself First
That means putting 20% of every single paycheck into savings or an investment account before you pay any bills. One of the best ways to begin securing your financial future is through an employer supplemental retirement or pension plan. Make sure you are maximizing what you can put away. If you can tolerate a little risk, consider investing in the stock market. Stock prices around the world fell in 2020. That might sound scary, but remember that the lower value means you stocks are essentially on sale right now.
Tip # 3
Get Rid of Debt
You must stop using credit cards now and begin the hard work of paying them off. You can move yourself a little closer to the goal of 0 credit card debt by calling the customer service hotline on your billing statement and asking if you qualify for a lower interest rate. One factor that may sway your creditors is offering to make a substantial payment on your outstanding balance. Another tactic is to find out the rates other companies are offering and show it to your company. Credit card providers want to stay competitive.
Tip # 4
Plan For The Future
For some of us, that means saving for our first home. For others, it means considering where we’ll get our income from when we retire. It’s key that you determine your why. Why do you want to save money? Once you figure out why you’re saving money, it’s much easier to stick to your plan.
Tip # 5
Put your reserved money to work by educating yourself on various investment options, seeking guidance from a trusted expert who’s walked the talk and who endeavors to help you make risk-based investment decisions. Don’t follow the crowd like a sheep.
Improving your financial health is a surefire way to improve your mental health.
Mental, physical and financial wellness are three pillars of good health, according to the Canadian government. No matter what your current financial state, I promise there are steps you can take today to make it immediately better.
For Becky, the key was having CleveDoesMore by her side. She felt instance confidence after the CleveDoesMore team created a personalized roadmap for her financial journey. This specialized financial plan helped her identify where she was, target where she wanted to be, and then have a plan to get there.