5 simple ways to reduce your money worries this Stress Awareness Month

How often do you find yourself worrying about financial matters, such as unexpected bills or what could happen in the future if you were unable to work?

April is Stress Awareness Month in the UK, and recent research reported by the Mental Health Foundation has found that 29% of UK adults feel stressed about money. If stress is not managed and resolved, over time it can lead to further problems such as poor sleep and high blood pressure.

If you’re finding managing your money to be stressful, here are five tips to help you reduce the overwhelm and boost your financial resilience.

1. Build up an emergency fund

Sometimes, an unexpected bill or expense can crop up, such as your boiler breaking down or your car needing repairs. If you aren’t prepared for situations like these, they can easily cause a great deal of stress.

One way to reduce the impact of these events on your mental wellbeing is to build up an emergency fund, ready to dip into at short notice. It’s sensible to save up the equivalent of three to six months’ worth of expenses. This means that you could afford to cover all of your necessities in the event that you had a few months without income.

Keep your emergency fund in an easy access savings account so that you are able to withdraw cash as soon as you need it.

2. Identify the risks you are exposed to

Sometimes, worrying about what might happen in the future can be just as stressful as events happening right now.

What would you do if you weren’t able to earn an income due to an illness or injury? Could your partner or family cover the cost of the bills if you passed away?

Have any of these questions ever caused you stress, perhaps keeping you awake at night as a result?

While it’s not pleasant to think about these things, approaching them head-on and creating a plan can remove the lingering worry of “what if?”.

One way to do this is to consider taking out financial protection. Income protection, life insurance, and critical illness cover are just some of the types of protection that could provide peace of mind and practical support to you or your family in the event that you fall ill, become injured, or pass away.

3. Write an estate plan

As well as financial protection, having an estate plan can help reduce your worries about what might happen after you pass away.

An estate plan includes a will, Lasting Power of Attorney, and an expression of wish for your pension. You should also consider creating an “in case of emergency” (ICE) document to help the executor of your will to identify the assets that comprise your estate after you pass away.

It’s important to review your estate plan regularly, particularly after key milestones such as having a child or grandchild, or getting married or divorced. Remember that if you marry or remarry after writing a will, the document is considered invalid. So, it’s especially important to review and update your will if this happens.

You can read more about the documents you should have in place to give your family peace of mind on our website.

4. Review your finances regularly

Knowledge is power, so don’t bury your head in the sand when it comes to your finances. Instead, make time on a regular basis to look at your income and expenses so that you have a clear idea of the shape of your personal finances.

It can help to have a monthly slot in your calendar dedicated to reviewing all your accounts and ensuring that everything is as it should be. This time could also be used to pay any bills that you have received that month or categorise your expenses to help you understand exactly what you are spending your money on.

Doing this regularly could help to reduce the overwhelm related to managing your money because you will feel more in control of your finances.

A small caveat to this point is that we suggest your monthly finance review shouldn’t be used to check the value of your long-term investments. Stock market investments can fluctuate in value from month to month, and this can cause a range of emotions depending on how your portfolio has performed that month. Instead, focus on the long-term goals of these investments rather than what they are doing in the short term.

5. Reach out to a professional 

When you’re feeling overwhelmed, it can be difficult to see the wood for the trees. This is where talking to someone else about your worries and challenges can prove helpful.

Financial planners are experienced in helping people just like you to make sense of their money. They will be able to advise you on how to proceed with any challenges you’re facing and may be able to spot opportunities that you hadn’t noticed.

A study by Royal London found that taking financial advice has many benefits to your finances and your emotional wellbeing. Those who sought advice were not only better off, they also reported feeling less anxious about their finances and more confident about the future.

Source: Royal London

Get in touch

If you’d like to speak to a reliable financial planner in Towcester who can help you to reduce the overwhelm you’re feeling about finance, we can help. Email theteam@fortitudefp.co.uk or call us on 01327 354321.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

Financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions.