Avoid Financial Stress:
Tips on Staying Financially Healthy

By Sharon Schurman

The basic fact you need to know is that you cannot spend more than you bring home. Living within a budget is hard to do but it is a must if you are going to avoid financial crunch crises.

If you owe more than you can pay, if you charge up large amounts on credit card and are overextended, hopelessly in debt, you are in a financial crisis. This is a huge stressor and can affect every aspect of your life and relationships. The big B word, bankruptcy, looms ahead like a block of ice ready to crush you. You are feeling pressure from every direction to spend more and more. The credit card companies send you cards, tempting you to charge it now and pay for it later. There are so many enticing things on TV which say to you, 'buy me'. So you have to develop a system for dealing with financial traps set for you without falling in.

First of all, if you are spending your paycheck before it arrives, you are in trouble, You must immediately take stock of your lifestyle and decide what things are essential to have and what are things you know you could do without. Drop the unessential expenses and you will find that the till is not empty at the end of the month. Every week put a set amount of money aside for your future. Put it in saving account, stocks, or mutual funds and bonds. Every little bit counts and $10 saved per week is going to add up after several years. This is also your emergency account, something to fall back on when the wolf arrives at your door. You would be surprised how many people say when asked about their emergency stash that it would be their credit card. More headaches, more stress.

Here are some steps to take immediately:

• Sit down and go over your finances right now. Figure out what you actually bring home after taxes, then write down your expenses. Take control and tell yourself that it's time to have money left over after paying everything monthly. Tell yourself that you will not buy impulsively, that you will go to the store with a list, and only buy what you really need.
• Learn to live more frugally, get by on less. There is nothing written anywhere which says you have to keep up with the Joneses or always give your children what they demand. Tell your family that things have to change and nobody can commit to an expense that had not been planned.
• Insist that you save up at least three months of emergency money in case a disaster strikes. If you lose your job or have medical expenses you had not planned for, you will be far less stressed if you have a stash to tide you over.
• Have only one credit card and only use it when you need to do so. Keep track of your bill, the charges, and the rate of interest. Never let your charged amount get out of control with the interest mounting. Credit cards debt is usually what people have to charge off at bankruptcy. And now the government is siding with the credit card companies, refusing to let credit card debt be discharged at bankruptcy.
• Have a serious conversation with your family as to how you want to get out of debt. Make everyone part of the team in paying off bills. Sell them on the idea that preparing for the future is the only responsible thing to do and everybody better get with the program.

It doesn't really matter what you earn if you are not saving. I have known people who have blown through millions of dollars and still have no equity and savings to rely on in their older years. It is what you save that counts. So no matter what you earn, put some of it back for a rainy day because there are always financial stress clouds on the horizon. Don't let financial stress hurt you or your family. Take control, be in charge of your budget, and you will feel a sense of power in your life.

About the Author:

Sharon Schurman is a retired licensed clinical counselor whose site offers information, suggestions, and tips on dealing with stress, depression, and anxiety.

Sharon Schurman may be contacted at www.stressrelief911.com or email sursel@aol.com.