If halfway through the month, you’re constantly looking at the calendar and nervously counting down the days until you get your paycheck, something is wrong. That’s no way to live. Because we all deserve less stress in our lives, it is time for a change. How nice would it be to no longer have to live from paycheck to paycheck? To be able to cope with financial setbacks without stress? In short: to live without money worries?
By following these four steps, you will build up a good financial buffer and break your cycle.
4 steps for reducing money stress depression
Know where every money goes
Yep, we know: budgeting doesn’t sound very sexy more like boring and a lot of trouble. And yes, it is wise to sit down and overview where your money goes the first time. We can already tell you that it is an eye-opener. But as far as we are concerned, you can forget about Excel after that.
Once you know where your money goes, you can attach a budget to each category, from clothing to catering. Make sure it is realistic, so you can keep at it and don’t throw in the towel straight away. As soon as things are going well, you can constantly adjust your budget downwards. This step will already save a lot of money worries.
Save at the beginning of the month
If you know how much you will spend this month on each category, you also know how much you can save each month, instead of just saving what’s left, set up an automatic subscription to your savings account. You’ll see that you’re much less inclined to spend that money when it’s already gone.
See where you can save on your fixed costs
Most people focus on saving on the things that are fun to do, like going out to eat. Why not see if you can save on the things you have to pay for anyway, like your energy bill and insurance? You will see that you can save quite a bit this way and save yourself money worries. This is money that can go straight into the savings account, of course, to build up your financial buffer.
Spend wisely and build up a financial buffer
We are not saying that you should not spend any more money on fun things, just that you should do this consciously. That means: think about buying something for a few weeks instead of throwing it in your shopping basket straight away, checking the supermarket for cheaper options, and eating out twice a month instead of many times.
The biggest reason people who earn a normal salary have money worries is that they spend money without thinking about it. Consciously thinking about your spending will therefore help you save and build up a financial buffer. Once you have saved up a nice amount, you will have some breathing space. And that means less stress as you count down the days until your next paycheck.