These movements bring me a lot of peace of mind.
- Some people are more financially insecure than others by nature.
- Making a few key money moves helped me avoid unnecessary stress.
When I was growing up, my family didn’t have a lot of money, so I was always concerned with being frugal and spending wisely. But as I got older and grew into an adult, worries about money crept in more and more. And to this day, I’m often plagued with financial worries, even though I don’t have unhealthy debts and I don’t earn a lot of money. -wise.
The good news, however, is that I have taken steps to ease my financial concerns. And if you’re in a similar boat, you might want to follow my lead.
1. I stick to a budget
Knowing exactly where my money is going month after month helps me better understand my current level of spending. It also keeps you from constantly overspending.
If you’re worried about money, it’s worth putting yourself on a budget and seeing if that helps. Now I’m old school and use a spreadsheet to track my expenses. But there are various budgeting apps worth using if you’re just starting out.
2. I limit my big expenses
As a general rule, it’s a good idea to keep your housing costs, including your mortgage, property taxes and home insurance, at 30% of your take home pay or less. I’m definitely in the “or less” camp, and spending a smaller percentage of my income on housing gives me more flexibility in my budget.
Over the past few years, my husband and I have had to deal with a series of expensive repairs. We certainly had to dip into our emergency savings to cover some of these costs, especially the larger ones. At the same time, we have avoided using our savings for small repairs because we spend less on housing and therefore have some leeway from month to month.
Also, one of the cars we own (we need two as we live in the suburbs) is 15 years old and not in top shape. But we didn’t upgrade because the car is still running. Keeping that old car gives us more buying power for other things, which gives me peace of mind.
3. I maintain a strong emergency fund
Traditionally, financial experts have said that your emergency fund should contain enough money to cover three to six months of living expenses. Some experts are more conservative, especially in the wake of the pandemic. But I almost always made it a point to maintain an emergency fund with enough money to cover a full year’s bills.
Having that money in the bank has, over the years, served as a lifeline. It also ensured that the various surprise home repairs, car repairs and medical bills I faced didn’t cause me undue stress.
At this point, I’m convinced I’m just hard-wired to worry about money – maybe more than the average person (hey, we all have our stuff). But these moves help ease my anxiety, and if you’ve been plagued with money worries, it’s worth seeing if sticking to a budget, cutting back on big expenses, and increasing your life savings. help you.
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