Having any kind of stress in your life can be overwhelming, and stop you enjoying your life. When it comes to financial stress, this can take many forms. Some people find themselves kept awake at night worrying, while others may find that they cannot relax due to concerns over how to pay the bills and make money last until their next payday. This isn’t healthy, for both yourself and your bank balance. Instead, you might want to consider some little tips that could make a big difference.
Use an ISA
Your regular bank account may allow you to store your money but, depending on the type you have, it may not help it to grow. By doing a quick search for ‘what is an ISA’, you may soon realise that there are specific types of accounts that allow you to grow your funds, without needing to pay tax on those gains. Each individual is limited to one of these accounts, and there is a maximum you can deposit each year. However, there is also no charge for having the account, meaning you can simply leave it to increase your money, either in case of emergency, or even to buy a home.
Curb Impulsive Spending
Making sure that all bills and essentials are covered is a good way to be, however that doesn’t mean you can empty your bank account once those are sorted. While it is understandable that you may need to buy groceries and toiletries, you should try to avoid any impulsive purchases. These may make you feel great in the moment, but can lead to additional stress as the month goes on, especially if they push you into your overdraft or make any repayments become unmanageable. Instead, consider purchases before you make them, even if it means waiting a few days or weeks before you commit. This can also help you to avoid buyer’s regret afterwards.
Try and Avoid Loans
Many people speak about the benefits of living within your means, and how it can leave you a bit less stressed when it comes to your money. This entails avoiding loans or credit cards, as well as anything that is out of your price range. Of course, it can be understandable to not make upfront payments at times, such as on the purchase of a home, but the use of loans outside of exceptional circumstances can lead to people getting caught in a debt trap, especially if interest rates are high. Saving up for expensive items, or in case of an emergency, can be a far better approach that won’t see you paying for the item for months or years to come.
Finding ways to take back control of your finances can be quite freeing. Consider the worries that you currently have, and see if there are ways you can disentangle from them, and also prevent them from occurring again. In addition to this, creating a savings pool could help you to achieve some of your dreams, or feel more secure in your lifestyle.