by Natalia Jones

Created on: February 05, 2010

They say that money is the root of all evil, but while this might be a bit of a stretch, money is certainly a common cause of stress in all types of relationships. Financial problems can be found at the heart of many marital squabbles, disagreements with children, friends and parents and it can even be a source of personal disappointment.

If you are tired of allowing money to increase your stress levels and you are unwilling to allow financial problems or worry to jeopardize your health, take a look at the following suggestions on how to reduce financial stress.  

Change Your Attitude to Money

You may not even be aware of your attitude to money because it is an innate quality. You probably cultivated your feelings towards money while growing up and your decisions in adulthood are as a result of your experiences in your childhood home and the level of responsibility you were allowed to accept early on. If you realize that you treat money as a way to feel better about yourself by going on spending sprees or maybe you think of it as someone else’s problem, these things need to be adjusted. You need to take control of your money starting now.

Create a Budget and Stick to It

The first step to regaining control of your finances is creating a budget. To do this you need to figure out how much money you make and how it is allocated between spending and saving. Make a note of your expense categories and draft a budget with income on the left and expenses on the right. Take a look at Understanding How to Create a Budget Plan for more information.

Increase Your Money Consciousness  

This does not mean that you should put a price on everything and become materialistic, but rather, you should be more aware of the money you make and the money you spend. The process of budgeting will naturally make you more aware, but you can also make the effort to learn more about areas that are unfamiliar to you. For instance, are you comfortable with calculating your taxes or investing for retirement?

Develop Financial Goals

Everyone should have financial goals because they provide direction to saving. When your goals are monetized they are easier to achieve because you will no longer say “I would like to buy a house someday” rather you would rephrase this to say “I will buy a house in the next 3 years”. You can then take steps to figure out how much this will cost and how much you need to save per month to achieve your goal.

Work on Increasing Your Income

Who wouldn’t like to make more money? Increasing the size of the pie makes allocating your income among your many expense categories and goals a much easier task. To make more money you can start your own business, get a part time job or work towards a promotion at your current job.

Financial stress is caused by uncertainty and worry. These things can be cleared away to make room for knowledge and confidence with a little extra effort and determination.  

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