Do you walk into work each morning worrying about the state of your finances? If so, you’re not alone. 33% of employees are distracted at work by their personal finance issues and 46% of those individuals admit to spending at least three hours a week dealing with their finances when they should be working. Money is a big cause of stress throughout the country and across the world and it has long been a source of conflict between couples and employer-employee relationships, which is why many people find they have less stress on a higher income. But, what are life’s biggest financial stresses and how can you overcome them?
Raising a family
The US Department of Agriculture reports that it costs the average middle income family $233,610 to raise a child. This is an alarming figure to anyone considering starting a family, but you shouldn’t let this put you off. Instead, carefully plan and prepare for your baby’s arrival by putting money aside each month to live off while you’re off work and to help fund the additional expense that a baby brings with it. The total sum of your living expenses for six months should be enough to see you through the initials stages of parenthood. You should also carefully consider childcare costs long before it’s required. It’s great if friends and family can help out, but if that’s not possible, it might be worth considering moving location to a cheaper area where costs are considerably lower.
Mortgage debt is one of the biggest debts any individual will ever have, but that doesn’t make the realization of owing a bank thousands of dollars any easier to swallow. Before taking out a mortgage, it’s vital you ensure you can afford the monthly repayments, not only in the immediate future but in the long run too. If you or your partner plan to give up work to become a full time parent or you wish to retire early, then it’s unlikely that the amount you can afford now will still be affordable down the line. Remortgaging is a potential trap you could fall into if you opt for renovation work after purchasing your home, only to find the higher monthly repayments are a struggle. Instead, look for ways to build your wealth, such as selling unwanted goods, budgeting and using coupons on your weekly grocery shop.
Half of the country’s unpaid medical debt is due to unpaid care, such as doctor appointments and routine tests. It goes without saying that you should always ensure you have valid medical insurance in place, however, this doesn’t mean you won’t owe anything following an unexpected trip to hospital. Some medical practices don’t accept certain insurances and insurers won’t cover you for every condition. Therefore, you should get into the habit of putting a sum of cash away each month which is only to be used for unexpected medical costs.
Financial stress is something most people can relate to and will experience at some point during their lives. The key to dealing with this stress is to be prepared and smart with your money.