Stress can be triggered by many factors of which unnecessary and excessively spending is one of them.
While spending cannot lead to stress, its outcome or result such as debt and financial breakdown can lead to financial and emotional stress.
So, when one overspends on unnecessary things, such a person might slowly prepare himself or herself towards stress. This happens mainly when debt is accumulated in large amounts, that is when the income is less than expenditures.
Therefore, it becomes necessary that you have to spend wisely and develop “saving more” as a habit. This will make you overcome the stress and trauma associated with unforeseen situations, from financial debt
Many people, irrespective of their backgrounds can be faced with financial issues, which at some points in their lives leave them financially handicapped and stressed out. That’s notwithstanding, it can lead to a mental breakdown and affect relationships.
In order to improve the lives of such people, there are practices which have been proved effective that they can make your “saving more” while “spending smartly” to be achieved.
- Stay within budget
One of the leading factors that can cause financial stress from excessive spending is “staying over budget”.
This implies that expenses are greater than the budget. To some extent, it can affect some other parts of one’s financial life.
Staying within the budget helps keep you in track of your spending. So, you don’t spend on things not budgeted or not even on your priority list. Though sometimes, overspending becomes necessary especially when an unexpected situation arises.
For instance, when there is a need to get your roof fixed due to its poor condition, which may be affected by a storm. In this case, the reason for spending becomes justified.
- Learn to communicate
Communication is very important in every relationship. It helps other people in your life to know what you are passing through, know how you feel about such a condition and how to help out.
To relieve yourself of financial stress due to spending, it becomes necessary you talk to your partner and share your concerns.
This can enable both of you to come together and work to helping you in finance management. In this way, you will feel relieved because problem shares is problem solved.
And for the single ones, you can talk to a close pal who you know is accountable or responsible in terms of spending. He/she will be able to guide you through.
- Prioritize your needs
We normally stay off track when we fail to know our priorities. Therefore, arranging your needs according to the order of importance helps a lot.
To tackle this, you have to, first of all, differentiate your needs from your wants. In this case, your needs become primary, while your wants become secondary.
Major examples of needs are food, water bills,etc., while wants can be movie ticket, cable TV and data subscription.
This is because you can’t do without your needs, they are actually what keeps and sustains you. However, you can let go of “your want” when you are in a need to save because they only promise comfort for a particular time.
It is better when you list them out, “check” those that are more important and allow them to be your focus. Then, other ones can be considered when you think you can spend on it comfortably.
- Check your expenses
This step is very crucial as it helps to direct you to what takes up most of your cash. Check your daily, weekly, or even monthly spending by writing them down. This will enable you to analyze them better.
When you know what is taking up large percentages of your daily expenses, you can be able to make an adjustment in order to save more.
For example, if you find out that taking a taxi to work cost you more, you can a bus for an alternative, so that you can save better.
- Save for emergency
No one wishes for an emergency, but yet, they are inevitable. To avoid being financially stressed, depressed and unprepared, it is on the safer side you start saving on time.
When you save, you will have something to hold unto to when such situations arise. Again, when saving for emergencies, it is always reasonable to do so with a different account.
In this way, you can avoid tampering with it unnecessarily and for better accountability as well.
- Don’t go beyond your income
When you spend more than what you earn, it’s of no doubt that you are creating and accumulating debt for yourself.
This is why you have to cut down some expenses to suit your income and still save from it no matter how small.
This might seem easier for one who is still alone, but it’s not so, because when necessary measures are put in place, couples can know how to cut down some expenses.
They can easily design a suitable budget and stick to it. This might probably make them spend less than they earn.
- Discipline yourself
Most times, people who want to save end up spending the money along the way without any viable reason.
This is where discipline comes in, saving money come with lots of discipline. We can easily spend them when something not even necessary comes up. This is one of the ways you can save and avoid the stress that comes with reckless spending.
To achieve this, you have to first of all
i. Set your financial goals
When you set your financial goals, it will make you more serious than when you are saving aimlessly.
Additionally, it will help you in monitoring your saving progress. In this way, you will know if you are reaching your set goals or not depending on the duration also.
For example, if you want to save for the upcoming holiday trip, you have to consider things like where you want to spend it, your mode of travel, activities you will engage in, the number of days to spend and so on.
When you have put all these down, you can be able to know at least an estimation of the holiday package cost, and then you save accordingly.
Knowing what your plans are can make you disciplined enough, and not spend the money you are trying to save.
ii. Deny peer pressure
There is nothing that can mislead you or make you change like your peers. Pressure from your friends can make you spend what you have been saving or even discourage you from saving.
To discipline yourself in this area may be quite hard if you don’t resist the pressure and focus.
iii. Be realistic
Saving for the future is good, but be realistic about whatever you are budgeting the money for or how you want to save.
Like, saving about 70% of your income is very good, but can the remaining 30% take care of your other needs? Consider all priority to avoid making you not look like you are pushing yourself too much to the wall.
While trying to save try to be realistic and not take other parts of your life that need attention for granted, as it will make the savings lose its worth.
iv. Be determined
Have you ever wondered why some people can starve themselves just to save and get what they want? It’s because they are determined to have it and then disciplined themselves to get it.
Determination is one factor that keeps us going without looking back no matter what, and this is the pushing factor that makes some people able to save even when they earn little, while some who earn more with even less responsibility can’t save as much as they do.
v. Have the belief that you can
Saving money consistently may not be easy, and one who does save before without believing if he or she that she can do that will lead to inconsistency and non-commitment.
So, before you can discipline yourself to start saving, believe that you can do it first, to enable you to begin with positive energy.
Therefore, when you have finally achieved your financial discipline, you can be able to start saving and spending less on things that are not needed, This will help prevent stress associated with overspending which makes you financially handicapped.
Finally, overcoming excess spending will help you a lot, especially in the areas of meeting your set goals. Similarly, it will help you be in control when a need arises, and then, provide you relief from the stress that comes with reckless spending.