by Sherrie Bourg Carter

Created on: February 06, 2010

With increasingly bad economic news on an almost daily basis, there aren't many people who aren't feeling some degree of stress over finances. If you're one of the many that fall into this category, here are a few strategies that you can use to reduce financial stress.

1) Create a budget to find out exactly where you stand in this new economic climate, then adjust your lifestyle as necessary to accommodate to the changes. Eat in as much as possible. Rent movies rather than going to the movie theater. Then, when the economy turns, you can return to these things and probably appreciate them more.

2) Pay down debt if you can, but if you can’t, don't accumulate any additional debt. Make a realistic list of what you absolutely need and spend money on those needs. Do not spend money on what you want. Food is a need; a new dress or suit is a want.

3) Don’t put your head in the sand and hope the storm will pass. However, it also is not healthy to obsess over the financial crisis to the point where it consumes your thoughts. This type of negativity fuels depression and can cause it to spiral downward each time a new “bad economy” report is released.

4) Don’t be foolish in your “investments.” Some times, the best investment is to keep your money where it is until it is safer to take out and put elsewhere. There may be a lot of “deals” available now, but they’re only deals if you have the money to invest in them. If you don’t, they are only additional stressors that you don’t need right now.

5) Search for opportunities to supplement whatever money you're earning now and save as much of it as you can. Consider temporary or part-time work if it is available. You also can ask your employer about the possibility of overtime work. Because companies are reluctant to hire new employees due to the economic uncertainty, there are likely to be more opportunities for overtime work as the economy slowly begins to recover and your company begins to generate more work.

Clearly, America’s current financial struggles are not going to resolve themselves overnight, and you, as an individual, have little control over when the country will recover and get back on its feet. However, you do have control over how you will recover and get back on your feet. Turn your worry into positive action. Invest wisely, pay down debt as much as possible, don't waste money on "wants," and save as much as you can.

Without a doubt, the economy is stressed right now, but it doesn’t have to make you stressed. The onus is on you to implement strategies that will help you cope with these difficult and trying times. As with everything, this too will pass, and while it's passing, you should be putting yourself in the best possible position to come out on top when this crisis is over.

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