3 Powerful Ways To Decrease Your Financial Stress
|December 7, 2011||Posted by Roshawn Watson under Uncategorized|
1. Decrease Financial Stress By Knowing What You Really Value
In fact, if your contentment is based on materialism, then money is the least of your worries.
2. Decrease Financial Stress By Stopping The Insanity
My primary concern with debt, particularly consumer debt, is that with it comes risks that typically nullify any leverage advantage received by using the debt in the first place.
Earlier this week, I read about someone thinking that getting a $500,000 loan to purchase 8 rental properties with nonexistent cash flow was a good idea because he was “getting over on the banks through the power of leverage.” With the numbers he shared, he would be a bankruptcy waiting to happen. Remember, a plan that only works if everything goes right is hardly plan at all.
- Debt equals risks.
- Risks cause stress.
- No debt equals decreased financial stress!
3. Decrease Financial Stress By Rethinking Budgeting
- Pay yourself first. Even if you simply create an artificial sense of economic scarcity by “paying yourself first” and using the remaining money to cover all other expenses, that would be a great improvement over ignoring budgeting altogether. At least this way, your savings and investing would be taken care of.
- Use technology to assist you. Consider employing tools to make it easier, such as using automatic drafts into your savings and brokerage accounts and using the “envelope system” for groceries.
- Eradicate the idea of a “perfect” budget. Let your budget change as your life changes. Perhaps you are not yet in a position to allocate funds to every single line item. That’s perfectly okay. Few are.
- Note, a more detailed discussion on the power of budgeting is available in my FREE eBook.
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.