How to De-Stress Your Finances

How to De-Stress Your Finances

How to De-Stress Your Finances

It happens so quickly; you might not notice it. Over a few weeks—an unexpected repair here, a quarterly payment there—and suddenly you feel like you’re underwater. Again.

 

While security can mean different things to different people, generally it's having enough money to cover your expenses, live comfortably and set aside some savings. It sounds simple but can be hard to do. 

 

Yet no matter your earnings, there are ways to ease financial stress. And it’s not about just making more money. These practical tips can help you hold financial stress—no matter what your earnings—in check.

 

 

Why is Money Stress Bad?

 

Real harm results from financial stress, though it may take years to show up. 

 

Recent research from University College of London (UCL) found financial stress is the most harmful to your health. It’s dangerous because it can lead to higher blood pressure, heart issues, even diabetes. And it can lead to depression. 

 

 

If You Do One Thing, Make it This

 

Most of us can’t count on winning the lottery. But there is a proven path to financial peace, long before you give up lattes or work extra hours. 

 

Build a resiliency fund. Call it what you want—a “rainy day” fund, your “mad money,” or just an “emergency” fund. 

 

The key is that it is money that you can tap for emergencies or otherwise. Why is such a simple thing so powerful? There are two reasons:

 

  1. It allows you to take care of yourself.
  2. It gives you options to problems.

 

It doesn’t take much. A recent Fidelity study looked at people’s finances, particularly women’s. “Stress” was the top word women used to describe their financial situation. Of those with no emergency savings, 81% reported a lot of stress. Once three months’ worth of cash reserves were built up, stress levels fell to 26%.

 

 

Reduce Stress Even More

 

Even one month of cash reserves helps. You can go further with these actions:

 

  • Know your monthly bills. Consider ways you can lower or shift what you owe each month.
  • Tackle debt. The less you “have” to make the less pressure you’ll have.
  • Put your savings on autopilot. If you have regular pay periods, set your bank instructions to put a small amount into a savings account on paydays. If not, pick a date, and contribute to pay yourself first.
  • Make a budget. Yes, it’s a plan for bills and saving. It’s also a picture of what your money is doing.

 

 

Use Mercer Indigo to Find Discounts

 

Mercer Indigo can help you shop for more affordable options for the bigger bills in your life—insurances and other risk protection—to help you ease money stress. Use it to compare rates from leading companies to find the best solution for you. 

 

Visit our Healthcare, Supplemental, and Lifestyle benefit pages to learn more