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Money Girl

211 MG How to Deal with Money Stress

Find out four key causes of financial stress and how to handle them. Get 10 tips to dealing with money stress that will help you improve your relationships, health, and sense of well-being. http://j.mp/MoneyBooks

Broadcast on:
09 Mar 2011
Audio Format:
other

Find out four key causes of financial stress and how to handle them. Get 10 tips to dealing with money stress that will help you improve your relationships, health, and sense of well-being. http://j.mp/MoneyBooks

Hey Fidelity. How can I remember to invest every month? With the Fidelity app, you can choose a schedule and set up recurring investments in stocks and ETFs. Oh, that sounds easier than I thought. You got this. Yeah, I do. Now, where did I put my keys? You will find them where you left them. Investing involves risk, including risk of loss, Fidelity brokerage services LLC member NYSE SIPC. AT&T customers switching to T-Mobile has never been easier. We'll pay off your existing phone and give you a new one free, all on America's largest 5G network. Visit t-mobile.com/carrier freedom to switch today. Pay off up to $650 via virtual prepaid mastercard in 15 days. Free phone up to $830 via $24 monthly bill credits plus tax, qualifying port and trade and service on Go 5G next to credit required. Contact us before canceling entire account to continue bill credits to credit stop and balance and required finance agreements do. Hi everyone and welcome to the Money Girl Podcast. I'm Laura Adams, the author of Money Girl's Smart Moves to Grow Rich. Do you ever feel stressed out about money? I don't have statistics on how many people have financial stress, but if you're one of them, I know you're not alone. In this episode, I'll highlight four fundamental causes of money stress and give you 10 tips to deal with them effectively so you can create a more peaceful life. There's no shortage of reasons why people are dizzy with money stress these days. The high unemployment rate, sagging real estate values and steep gas prices are real issues that we can't control, but that affect our wallets nonetheless. But it's important to realize that stress is nothing more than your body's response to a situation or a series of events. Think about it. When faced with an emergency, like a fire in your building or an approaching tornado, some people freak out and other people stay completely calm and in control. The situation is exactly the same for everyone, but the way each person perceives the situation is very different. So it's absolutely possible to calm your body's stress responses so you can think clearly and work on solutions, even if what stressing you out doesn't go away. Though you may never completely eliminate all stress in your life, managing it can help you improve relationships, health, and your general sense of well-being. As a financial life coach, I typically work with clients who have some amount of anxiety about what's going on with their money. I help them identify exactly what the problem is so we can pinpoint the most effective solutions. That's the first step to really understand where your stress comes from. When you strip down the issues, there are four fundamental reasons why people get stressed about their finances. Money stress number one, drowning. The first common stressor is when your living expenses exceed your income and you can't keep your head above water. That's what I call drowning. I'm sure you can guess what happens when you consistently spend more than you make. You begin to finance your expenses using some form of debt, like a credit card, a loan, or a home equity line of credit, or you might tap into your savings or retirement funds to pay your bills. Money stress number two, barely surviving. A second reason for stress may come when you're surviving financially, but feel like you're just treading water. That can happen when you're able to pay all of your bills, but are still living paycheck to paycheck. When you can't seem to get ahead of your expenses and accumulate emergency savings or build wealth for the future, it can cause a lot of worry and financial stress. Money stress number three, owing. A third stress for some people is owing money, even if you're meeting your expenses and diligently saving for the future. Having any amount of indebtedness can be a stressor if it causes you to feel trapped or to believe you're wasting resources paying interest to a lender. Money stress number four, complicating. The last cause of stress that I'll mention is feeling like your finances are too complicated or have gotten out of your control. This can happen when you're unorganized, have too many accounts, don't have a financial plan, or need to start managing your finances for the very first time. Many people mistakenly believe that if they just had more money, all their stress would disappear and they'd be blissfully happy. In some cases, earning more money is the solution to financial problems. If you're unemployed or underemployed, for instance, your financial stress probably won't go away until you have an income that you can count on. But for many people, having more money simply causes them to inflate their lifestyle in a way that doesn't reduce stress or bring them more happiness. So remember that no one is immune from money stress, not even the super wealthy. For most people, the best way to deal with financial stress is to be smarter about how you spend and to change your perspective about your situation. Here are 10 tips and techniques to build up your resistance to financial stress. Number one, change your language. Though it may sound cliche, keeping a positive attitude and using positive language can reduce your stress response to financial issues in your life. Never say that you can't increase your income or that you should cut your spending, for instance. Instead, say, "I want to increase my income," or "I will cut my spending." A shift in your language is the first step to a shift in your mental attitude. Number two, reframe your thinking. How you view your finances and speak about them can change the way you feel about them. In turn, how you feel about your money will strongly influence how you manage it and deal with challenges. Remember that actions are always preceded by thoughts and beliefs. Now at T-Mobile, get four 5G phones on us in four lines for $25 a line per month when you switch with eligible traders, all on America's largest 5G network. I love learning and anything that makes learning easier. If you're a parent and your child needs some homework help, then Ixcel is a right for your family. Ixcel is an online learning program for kids covering math, language arts, science, and social studies. Ixcel has interactive practice problems for topics from pre-K to 12th grade and everything is organized by grade and subject. As kids practice, they get positive feedback, awards, and explanations for wrong answers. Ixcel figures out what your kids need more help with and recommends more topics to practice. Their videos, lessons, sample problems, and learning games too. One subscription to Ixcel gets you all subjects and all grade levels. Membership started just $9.95 a month. It's no wonder Ixcel is used in 95 of the top 100 school districts. I think the positive feedback that Ixcel gives is really crucial when it comes to learning. So make an impact on your child's learning. Get Ixcel now and money girl listeners can get an exclusive 20% off Ixcel membership when they sign up today at ixl.com/moneygirl. Visit ixl.com/moneygirl to get the most effective learning program out there at the best price. Calling all future shapers and dream chasers. MSU Denver works with you online and on campus. Learn with faculty and peers to forge your career. Your next starts now. We are the changemakers. MSU Denver. 3. Recognize your power. In general, people tend to get more stressed when they believe a situation is out of their control. That's why lots of people get really uncomfortable traveling on an airplane. When it comes to your money, you always have the power to make a difference. So recognize that choices exist for you to improve any financial problem. 4. Focus on the positive. Instead of dwelling on what's wrong with your finances, think about what you have to be grateful for. Notice what's going right? Make peace with your problems and decide to learn from your challenges. Many people keep a gratitude journal where they write down a few things that they're thankful for each day. 5. Stay in the present. Many times financial stress comes from projecting a worst-case scenario into the future. You can exaggerate a situation in your mind to the point that your heart starts pounding and your palms start sweating. Remind yourself that you're not in the future. You're in the present moment where you have control. 6. Reject thoughts of failure. Never believe that a financial challenge is a sign of personal failure or weakness. Whatever your situation, remind yourself that it's nothing that millions of other people haven't struggled with. Heck, some of the wealthiest people, like Donald Trump, have gone through serious financial rough patches. You and your family can grow stronger by proactively working through your money issues. 7. Take a stress break. Make a conscious decision to do something healthy to take your mind off your stress. Maybe it's playing with your dog or kids, going for a run, enjoying a hobby, watching a movie, listening to music, or doing yoga. 8. Get financial help. Talking to a wise friend, a family member, or a financial professional can help you see options and solutions to your problems that you might be overlooking. Working with a financial coach or planner is a smart way to get back on track so you feel more in control and optimistic about your situation. 9. Reduce your debt. If debt is stressing you out, get serious about creating a spending plan so you can free up more discretionary money and pay it off as quickly as possible. A good rule of thumb is to keep the total of all your monthly debt obligations below 40% of your gross monthly income. 10. Choose to build wealth. Using your money to create a secure financial future instead of spending it on material possessions will give you a feeling of freedom that expensive toys never deliver. You can reduce stress by purchasing less stuff that you really don't need and making a commitment to save and invest at least 10% of your income. And I have one more special announcement. Monica Reinhagel, the quick and dirty tips nutrition diva, has a new book. It's packed with delicious recipes, meal plans, and a supermarket survival guide so you know how to make the healthiest choices possible. Order or download a copy of nutrition diva's secrets for a healthy diet at Amazon, Barnes & Noble, Borders, Pals, or the iBook store. Be sure to connect with me on Twitter. My username there is @LaraAtoms. I'm also on Facebook. Just do a search for Money Girl. Submit your money questions through social media or email me at money@quickanddirtytips.com. I'm glad you're listening to Ching. That's all for now. Courtesy of Money Girl. Your guide to a richer life. At Sprouts Farmers Market, we're all about fresh, healthy, and delicious. That's why you'll find the season's best organic produce, hand-picked, and waiting for you in the center of our store. We bring in local farm fresh fruits and veggies bursting with flavor. Come on in to discover everyday favorites like juicy berries and crisp greens, but also unique peak season varieties like moon drop or cotton candy grapes. Visit your local Sprouts Farmers Market today, where fresh produce is always in season. 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