Money problems can lead harm health and relationships, so to celebrate National Stress Awareness Day on Wednesday, November 4; a consumer finance expert has come up with a five-point plan to ease the difficulties.
Julie Hutchison works for insurance and pension giant Standard Life.
She explains that more financial advice than ever is available free on line and from independent financial advisers to help ease any qualms people have about managing their money.
“A recent survey revealed more than 40% of over 50s say they are chronically stressed about money, while 84% of younger age groups do not feel the same pain,” she said.
To make money management easier, here are her five top tips for taking the stress out of finance:
Talk about your problems
Many people feel discussing their finances with friends or family is a taboo topic and can find the process embarrassing and stressful.
Look online for free, reliable money advice, don’t feel bad about talking to close ones, but if you feel you cannot speak to anyone, talk to a financial adviser or Citizen’s Advice.
Talking about money problems really helps and can lead to solutions you may never have thought of, said Hutchinson.
Work to budgets
Have a detailed knowledge of your income and expenses helps pinpoint problem areas and spending which can be reduced.
Many people have direct debits and other subscriptions going out of their accounts that they have forgotten about but still drain their finances, said Hutchinson.
Clubs, online organisations and those gym memberships are often culprits.
Manage your spending
A budget is good, but you still have to control spending to make sure you remain on track.
Try walking instead of the bus or a cab, take a flask of coffee to work instead of buying cups.
You’ll be surprised you can save hundreds of pounds a year by just implementing small lifestyle changes.
Look for financial solutions
The NHS and Money Advice have launched a Money Worries tool to help people identify ways to relieve financial pressure – take the test and see what it days about you
Keep some rainy day money
Having some cash in the bank for those unexpected bills or even treats is worthwhile. Try saving enough cash to cover three months of spending – then move onto another three months and start investing in a pension or ISA.
