How to minimise financial stress in your life

There are ways to minimise the financial stress in your life that is keeping most South Africans up at night – such as worrying about food prices, electricity tariffs that increased by more than 18% and high interest rates.

Financial stress can significantly affect your well-being and relationships and while there is no easy fix, there are steps you can take to ensure you can sleep easier at night, knowing that you are doing something to improve your finances, Lee Hancox, head of channel and segment marketing at Sanlam, says.

“Financial stress can become debilitating and affect your emotional and physical wellness. It is crucial to tackle it head on and part of this may mean getting a professional on your side. A financial planner can provide a practical step-by-step plan to help you navigate the tough times, without compromising your future financial goals.”

Hancox’s also encourages consumers to make these wise moves to minimise financial stress:

Goal setting and vision boards

When you have something to look forward to, it often keeps you going. Put your goals and dreams on paper for the short, medium and long-term and create the plan to make these happen. Many people find a vision board inspiring. This list can include various facets, like health, mental wellbeing, social, career, travel, personal growth and finances. A financial planner can help you devise a roadmap to reach these.

ALSO READ: How SA consumers are trying to survive cost-of-living crisis

Be gentle with yourself, but honest, very honest

You must have clarity about your current situation to help you better understand how to tackle challenges. Start by reviewing your income, expenses and debt to understand where your money is going and identify areas where you can adjust your spending. This requires discipline, but budgeting apps can help. Banks also allow you to retrieve monthly debits easily on your online banking profile to expedite this process.

Face your expenses head on

Once you have a bird’s eye view of your budget, determine which expenses are essential and which ones can be reduced or eliminated. Focus on necessities like food, housing, and utilities first. This might involve reducing entertainment expenses or finding more affordable alternatives. For example, do you really need 150 channels when you only watch 60? Contact service providers to renegotiate premiums or change subscriptions and, where there are better options, you may consider changing service providers.

Reduce temptation by unsubscribing from marketing mails and not shopping when you are hungry. Look at your list and write down your “plan of attack” to minimise each item where you can.

Pick an approach and see it through

Life is expensive and often the end of the month sees many of us digging into our overdrafts or resorting to credit cards to see us through. However, this can end up as a vicious debt cycle where interest accumulates, making it more expensive to buy on credit and harder to service the growing debt.

Unless a purchase is a “need” rather than a want, it can probably wait. You could use part of your bonus or windfalls strategically to pay down debt. Negotiate with service providers to reduce interest where possible or renegotiate payment terms if you are absolutely struggling to repay. Eradicating debt will not happen overnight and therefore you have to remain steadfast and consistent.  Look into the snowball and avalanche methods of reducing and then pick an approach or a combination of approaches to reduce debt and stick to it.

ALSO READ: Millions surviving by borrowing money to pay debts, report confirms

See if you can generate extra income

Explore ways to boost your income, such as acquiring new skills, pursuing career advancement opportunities, or starting a side hustle. A part-time job, freelancing, or selling items you no longer need are also options.

You might need to upskill to increase your earning potential. There are many online resources available with free or low-cost training. It also helps to keep an income-generating idea simple, for example only offering one simple product you know your community needs.

Prioritise self-care

Financial stress can take a toll on your mental well-being. Prioritise self-care activities like exercise, meditation, hobbies and spending quality time with loved ones to reduce stress and improve your overall outlook on life.

Find support for financial stress

Find professional financial advice tailored to your needs that will help you develop a plan to manage your finances more effectively. Engage with community or governmental organisations that provide resources or support in times of financial stress. Reach out to trusted, well-meaning family and friends for emotional support. If need be, speak to your healthcare provider about your mental health concerns and ask for appropriate referrals.

“Financial stress can be overwhelming, but by taking small, proactive steps, finding support and focusing on healthy coping strategies, you can work towards improving your financial situation and overall well-being. With a professional in your corner, a solid plan in place and commitment to see it through, you will be well on your way to financial confidence,” Hancox says.