Dealing with Financial Stress for Youngsters

Falling short of money all the time? Month ends are always bad? Feel like your salary is not enough? Stressed because you cannot meet financial expectations that you have set for yourself?

Financial stress is a real thing in this material world. It is difficult not only to meet your own expectations but also of your immediate family in case you have responsibilities. The only way to deal with a low salary is to look for a better opportunity with a higher pay scale or look for part-time/additional jobs. We understand that switching jobs and finding great opportunities is not as easy. Also if you take up a second part-time job then it can burden you and also lower your performance in your primary job. In such a scenario you are left with no choice but to focus on superbly managing your scene within the salary you are already earning. Polishing your work skills and working on personality development and growth during this phase in order to be able to get eligible for better opportunities is inevitable as well.

A very common form of stress, financial stress, is a product of mainly three forms of financial mistakes that you are currently making. The first is having no sort of a budget for various activities of the month, the second is being drenched in debts and the third is indulging impulsively.

First things first – make a budget which you should try not to cross unless it is extremely urgent and important. List down all your fixed unavoidable expenses. Example: medicine, tuition fees, yoga fees, transport to work, and the basic amount you need for groceries, etc. For all the remaining activities of your month, set up fixed budgets that you can’t cross come what may. This includes items like eating out in a restaurant, spending for your weekly parties, online shopping or random expenses like lottery tickets. If you do not have a budget then there’s no way in which you could match your income with your expenses. You would just end up spending mindlessly and have no money by the month-end. Financial experts also suggest that almost 20% of your income since the day you start working should directly get into investment and savings. That way, after allotting a certain amount to fixed expenses and putting in your 20% in savings, you have a free hand to be able to spend the rest of your money without feeling weighed. Don’t forget to save up enough for financial emergencies to avoid getting drained out if ever one arises.

Secondly, if you are used to impulsing buying or cannot differentiate between need and want- that only means you have very bad money skills that need to improve. If you cannot prioritize and decide what to give importance to, and end up making fancy unnecessary expenses before getting done with EMIs, SIPs, premiums, and bills, then you shall rethink and re-work your entire show. Studying more on this topic by reading financial management books for basics should surely help.

Lastly, one has to be extremely mindful of the kind of debts he or she is getting into. An education loan that would help you have a secured future is great but a loan to own fancy depreciating assets is an absolute no-no. Credit cards are one of the worst enemies of financial management in case you are living on a grouped budget. Avoid using a credit card and landing into debts for expenses unplanned.

I hope to bring these three simple problems under focus and solutions to them help you straighten out your stress symptoms! Get started today for a secure tomorrow.

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