Simplify Your Life? Spend Less.

 

One great way to reduce your anxiety is to make something simple.

Financial concerns are a big worry for many people, and we all face a financial challenge at some point in our lives.

The fast pace of modern life can mean it is easy to lose track and let your finances get out of control. This can lead to anxiety and stress, so step back and look at your spending. Create a plan to spend less moving forward, which will make life easier.

This could involve cutting something out of your life totally, or reducing things to make them more manageable. Think about what things are most important to you, and make those your priority. Everything else needs careful consideration.

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You need to take care of yourself, or you will not be in any fit state to care for your family or anyone else.

What to Cut?

There are several ways you can reduce your monthly spending, but the most obvious is to get rid of debts. Credit cards are the worst form of debt, because of their very high interest rates. To fix the problem, look for deals offering 6 months interest-free credit for changing to a new card provider.

Once you make the change, the key is to reduce your credit card use and pay down the principal balance over time. Alternatively, a bank loan to get rid of credit card debt may a cheaper option than trying to pay off a balance over a couple of years.

It might seem strange for a while, paying with cash instead of by credit card. However, you will be a lot less tempted to spend more than you have.

Dealing With Emergencies

You’ll worry a lot less about money if you have a savings account for emergencies.

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Start by putting a little away each month, and it will soon reach a sizeable amount. Experts say you should aim to have 6 months living expenses that are kept separate from other money, and you do not touch unless an emergency arises.

You could even have a set amount transferred from your checking to your savings account each pay period. Make the process easy by using automation.

Downsizing

Do you really need such a big living space?

Some people have a lot of money tied up in their property, and releasing some of those dollars can reduce your mortgage payments and be used to clear other debts.

You might consider a smaller home, an apartment, or even mobile homes for sale. They cost less to maintain, and are often in communities where you can meet new people.

Say No

If you’re asked to spend money on something you can’t afford, such as an expensive night out, or a vacation with friends, you have to learn to simply say no. You have put yourself first, and enjoy the things that really matter in your life. Don’t let yourself be pressured into something that hurts you financially.

There are many ways to make your life simpler, but taking control of your finances is a huge step toward having more peace of mind.

This post is for educational purposes only.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image: Bullseye, Jeff Turner CC by 2.0