Learn why you must avoid or reduce financial stress so that you can live at a level that is your absolute best…
In the current economy or any economy, it can be difficult to manage your finances in a style and manner that is more favorable for you and your family.
As you live day to day–stress will occur–however by getting out in front of your finances and knowing what lies ahead in your future (as reasonably as you can as life can be unpredictable) you can reduce negative stress in your life and manage positive stress in a more advantageous way for you and your family.
In this discussion TheWealthIncreaser.com will outline steps that you can proactively take to not only reduce stress but also put you on a path to obtaining the financial management skills that are necessary to build wealth effectively throughout your lifetime.
Determine where you are now at so that you can go to bat…
Determining where you are now at consists of at a minimum creating a budget or cash flow statement so that you can know what you or your household takes in and pays out on a monthly basis.
Going to bat means that after analyzing your cash flow statement, you are going to make the decision to get more income if you need to, cut your household expenses if you need to, pay off or pay down your debt if you need to, properly establish an emergency fund if you need to, start saving at a more appropriate level if you need to and plan for your future in a manner that puts you ahead financially–and keeps you ahead!
By determining where you are at financially you are taking a serious step toward taking control of your finances (and life) and by doing so you put yourself in a better position to avoid financial strife and at the same time put yourself on a more realistic path toward reducing the negative stress in your life.
Determine if you have mastery of your credit
Do you understand the factors that affect your credit, and do you know how to use that understanding in a way that is more beneficial to you–and not creditors?
By knowing how your payment history, utilization rate, time length of your accounts, type of accounts that you have and the number of inquiries that you had within the last 24 months affect your credit report and credit score, you can put yourself in position to make better moves when you decide to utilize credit–and thus reduce the stress in your life.
Determine if you have a complete picture of your financial life
As you move through the various stages of your life you will encounter varying financial challenges and by knowing what those financial challenges are or could be on the front end, you help reduce negative stress in your life.
What approach will you take to manage your insurance, investments, taxes, education planning, estate planning/wills, emergency fund and retirement planning so that you can truly reach your goals?
You must have a way of knowing all areas of your finances that you must address, and you must also address those areas appropriately if you have not done so up to this point. The process of formalizing that picture in your mind can now be done by you–if you are truly committed toward making your dreams come true.
It is important that you realize that people of varying income levels live from paycheck to paycheck and that style of living has the potential or is in actuality causing undue financial stress in the lives of many who live in that manner.
Even worse than living paycheck to paycheck are those who live from paycheck to paycheck and also borrow in a disadvantageous way (whether it be loans or credit card usage) and have no clue of their spending habits on a monthly and annual basis.
Those who live in that manner are in essence digging a bigger financial hole and that too causes “increased financial stress” in the lives of many. It is important that you not live with an unacceptable level of anxiety and uncertainty at this time, and you can start the process of “reducing stress in your life” by getting serious about your financial future and know in clear terms what you can make happen in your future–if you take the right actions now.
Living paycheck to paycheck–even if you earn six figures is no substitute for wise and effective management of your finances. It is important that you live in a relaxed and as enjoyable lifestyle as you can while you are here on planet earth and managing your stress to an acceptable and manageable level is critical for your long-term wealth building success, as well as your short and long-term mental health.
When choosing financial professionals be sure to do your due diligence on the front end and that includes knowing what to expect at the various stages of your life. It is imperative that you cultivate a money management personality that allows you to take the above steps in a manner that is second nature to you or in a manner that you don’t have to give it much thought.
Your plan of action must be foolproof, and you must be committed to following that plan as best you can–even when adversity occurs.
Even though you can do many of your financial affairs yourself, using professionals appropriately can help you avoid blind spots that you can’t see. In addition, the use of professionals when appropriate can also provide you the needed expertise as there are certain areas of finance that are nuanced and requires the expertise of a highly competent professional.
By getting out in front of your finances you can prevent mental and physical problems from occurring as negative stress can make you feel bad when you don’t even know why.
And don’t forget to include laughter and good times with others in your life as humor has the potential to lower your stress levels and make you feel more upbeat after experiencing adversity that you didn’t want to meet!
It is important to realize that not having a money management system at some level, owing creditors an insurmountable amount–and/or not making enough on a monthly basis to pay your bills will–or can affect your mind and body in ways that you may have never imagined.
Therefore, it is imperative that you take the opportunity that you now have to “manage your stress” in a better way–starting today!
All the best to “reducing your financial stress” and achieving at a level that is your absolute best…
Learn how you can open a new door and achieve more–by getting more income, cutting your expenses or doing a combination of the two–if you sincerely desire to make your dreams come true!
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