Money and finance have always been and will always be one of the main causes of stress and anxiety. Add the unpredictability of the global pandemic and work-related uncertainty on top and our financial anxiety goes through the roof. Here are a few tips that will hopefully help with your money anxiety and improve your financial health.
Start building your emergency fund
If you already have a savings account or even just a regular second account you only tap into in case of emergency, you’re off to a good start! If you’ve been using your one and only account this entire time, now might be a good moment to check out saving options and plans your bank has on offer. You’re probably traveling less, eating out less and overall spending less right now, so why not look into creating an emergency fund that will give you some sense of stability and confidence?
Cut unnecessary expenses
If your growing expenses are making you anxious, spend a day sorting out all your monthly payments – from fixed costs, like rent and subscriptions, to variables, like groceries or utilities. Then, trim whatever you can – maybe you’re not actually using some of your online or TV subscriptions any longer or haven’t really been to the gym for a while but are still paying weekly? You can also give your internet provider, cell phone company and even bank (if you have any loans) a call to ask whether there are any smaller packages or discounts they can offer you. Cutting unnecessary expenses goes a long way towards making you feel less anxious about the amount of money you spend versus how much you earn.
Stay educated
Being on top of your game helps you feel calmer and more confident and becoming more educated in money and finance is exactly what you need right now! We can recommend these six awesome podcasts on money and finance or these eight books that will help you manage your money better and save more. You can also watch our interview with Mary Holm, New Zealand’s most trusted money expert, on managing your money in a lockdown.
Stop checking your KiwiSaver balance
Yes, it might have taken a hit because of the lockdowns and reduced work hours you’ve had in the past year or so but checking and double-checking your KiwiSaver won’t change anything and will only drive you crazy. It’s your retirement account, so there is no rush – let it sit there quietly until things get back to normal.
Make a plan
Nothing boosts our confidence more than having a proper plan. Plans and schedules give us that satisfying feeling of being in control over our own future. Start making weekly or monthly budget plans that will include predictable expenses, savings and income and try to stick to them.
