by Sherrin Ross Ingram

Created on: February 05, 2010

It doesn’t take a recession or a rise in unemployment to bring on financial stress.  Many feel it daily — when bills arrive in the mail, when they sit down to pay bills, when they see a television commercial for something they want but can’t afford, when they hear of layoffs, or even when they hear of the rising costs of items or services they someday hope to purchase.

Financial stress is like a tsunami; it begins as a small ripple of water out in the middle of nowhere, until waves hit land, creating havoc in a five-mile radius. As bills, debt and financial aspirations grow, so does stress.  And like a tsunami, the effects of stress will wreak far more havoc than you could imagine if you don’t learn how to handle it in a positive way. 

INCREASING KNOWLEDGE AND PERSONAL STRATEGIC PLANNING

There are two main strategies for reducing financial stress: increasing knowledge and executing a written plan to achieve your goals. Increasing your knowledge about personal finance principles and strategies shows you possibilities.  Developing and executing a written plan visually shows you how possibilities can become reality.  Knowing that a certain reality is possible if you do certain things has a calming effect.  It allows you to see light at the end of what previously seemed to be an infinitely dark tunnel with no exits.

INCREASING KNOWLEDGE

Like most things, you’ll find fear at the root of most financial stress.  Fear arises out of not knowing and understanding the “big picture.”  When we don’t know how we will be able to afford the things we need and want without digging ourselves deeper into a hole, fear sets in.  Fear that is not properly dealt with manifests itself as anxiety and stress.  When we become knowledgeable about financial principles and strategies, we are able to understand the financial big picture.  We know that there is no need for anxiety and stress because, if we do certain things, it is possible to achieve our financial goals.

PERSONAL STRATEGIC PLANNING

You can see the financial big picture and still feel stressed out if you don’t see how that vision can become reality.  That’s the power of strategic planning – providing you with a road map that has a clearly plotted course to get where you want to be.  There are a few things you’ll have to do before coming up with your financial roadmap.

- Prepare an Income

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