Stressed about money?
Here’s a secret – you don’t have to be.
Money stress is no fun, but it’s common for people to feel stuck in a vicious financial circle. People often don’t have enough income to pay their bills, let alone save. When something major happens, they have to rely on credit cards in order to survive. They then are left with mounds of credit card debt, which adds yet another bill.
This pattern is exhausting and stressful. The good news is that you can break the cycle and alleviate money stress by using these 7 tools.
1) Open an Automatic Savings Account
Having a hard time saving any money? Make it automatic and effortless.
An automatic savings account with a reputable bank can help break money stress. You can start saving money without a second thought. All you have to do is create a new savings account and have money automatically withdrawn from each paycheck and put into your new account. Since you don’t have to physically do anything with the money, it’s a good way to remove any temptation you may have to spend the money instead of save.
If you don’t already have one, using an automatic savings account is a great way to build an emergency fund. Most banks today offer an automatic savings plan, so be sure to find a bank that works for you.
2) Use a Money Management App
Feel like your finances are all over the place? Try using a financial app like Personal Capital.
With Personal Capital, you can see a snapshot of all of your finances in one place. It can keep track of your spending, your budget, your bank accounts, and more. Not only does it give you accurate data about your finances, but Personal Capital is a fiduciary who can be trusted to always make the wisest financial decisions on your behalf. Further, they have financial experts on hand to assist you as needed.
Anyone can sign up and receive a free Personal Capital account. After signing up, you can link your banks and a few investment bank accounts. The app will then analyze your finances, including your spending, income, and investments. It also provides free retirement planning tools.
Click here to learn more about Personal Capital.
3) Refinance Your Student Loan Debt with Sofi
Many millennials face the burden of hefty debt, whether it’s through student loans, credit cards, or other. With lower starting salaries, it can be difficult for many people to come up with enough money to pay even just the minimum required debt repayment every month.
If you’re struggling to repay your student loan debt, you’re not alone. But fortunately, you have several tools at your disposal. One way you could potentially have more control over your debt is to refinance it through Sofi.
When you refinance your debt, another company essentially buys your debt at a lower interest rate than you currently have. This means that you potentially owe less over the lifetime of the loan or that your monthly payment is lowered.
Refinancing might not be an option for everyone, but it doesn’t cost anything to figure out if it could benefit you. Check out Sofi today to see if you are eligible to refinance your debt at a lower rate.
Note: Take extra caution before refinancing federal student loans, as you will be giving up your right to income-driven repayment plans and potential student loan forgiveness. With that being said, if you are certain you are going to pay back your loans in ten years or less and are comfortable giving up the additional rights that come with federal student loans, refinancing with a private lender could save you money.
4) Sign Up for Credit Monitoring
Worried about your credit? Sign up for credit monitoring.
Monitoring your credit is an easy way to be alerted of any suspicious activity. While credit monitoring won’t actually prevent identity theft, it can be a good way to regularly review your file. You will be quickly notified of any changes made to your credit report.
Companies like Credit Sesame offer year-round credit monitoring at a minimal cost. For your peace of mind, the cost could be worth it.
5) Create an Additional Income Stream
How would your financial situation change if you simply had more income? The truth is, most of us could probably benefit from having a little extra cash each month.
Creating an additional income stream can change your financial situation in itself. By working to create extra income, you can save more or pay off more debt.
There are plenty of ways you can create an additional income stream. For long-term income, starting a blog is a great way to earn extra money while doing what you love. You can always work a second job or sell products online to earn extra cash. Whatever you do, extra cash can provide the cushion you need to improve your finances.
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6) Budget
Potentially the most underrated tool, a budget is hands down the best thing you can do for your finances. In fact, you’d be hard pressed to find anyone who was successful without a budget.
A budget allows you to tell your money exactly where it should go. Think of a budget as the fuel that gets you to your financial goals. Without a budget, you can lose control of your cash. That makes it nearly impossible to reach your financial goals.
If you’re new to budgeting, be sure to check out our free automated budgeting spreadsheet.
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7) Take Advantage of Affordable and Free Resources
If you are overwhelmed and unsure of what to do with your finances, take advantage of all of the cheap resources available.
There are plenty of books, podcasts, and blogs dedicated to sharing information about personal finance. In fact, be sure to check out the best personal finance books available today.
How do you alleviate money stress? What tools do you use?
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great list, thanks for all tips…
Thanks, Giulia!