How many people do you know that are completely comfortable with talking about money? You might know a few people who feel comfortable in having an open discussion about their finances, but most people consider talking about personal finances impolite, even among close friends and family members. But, if talking about personal finances is so taboo and “closed-lipped,” how is anyone supposed to get more educated about how to better their finances?

A survey by the American Psychological Association revealed that 72% of Americans feel stressed about money at some point in their lives, and CNBC reports that finances are indeed the number one cause of stress to Americans. It’s understandable if you think about it. 

First, people always have more expenses than they have money coming in, and on top of that, only 27% of college graduates are working jobs in the field they went to school for. What does that mean? It means lots of people are making considerably less money than they anticipated upon graduating.

As unfortunate as this is, it’s a commonality among many people, and the only way to handle financial stress is to tackle it head-on. There are several different ways to do that but it will require work on your end. Now, this “work” isn’t painful or as dreadful as you may think, and even if it was, isn’t it worth it to be able to let go of some of those financial stressors you endure on a daily basis?

Of course it is.

If you have financial stress that’s starting to consume you, here are a few ways to reduce that stress.

Ways to Reduce the Financial Stress in Your Life

Figure Out Where All Your Money is Going

The biggest reason why you’re probably experiencing financial stress is that you don’t have a clue where all your money is going. Yes, you know the major bills you have but all the miscellaneous charges on your account, you don’t pay attention to.

It’s just so easy to swipe and go that before you know it, you’ll have swiped your entire paycheck away. To take control of your finances, you first need to write down where all your money is going. Look at your credit card and bank statements to see all your card purchases. For your cash purchases, hang on to your receipts to give you the most accurate version of your spending habits. 

Cut Back On Your Monthly Expenses

Cutting back on your monthly expenses is certainly easier said than done but absolutely necessary. This is the next step after figuring out where all your money is going. You’re going to look over your expenses and see if there’s any room for improvement, which there usually is. 

Whether it means eating out less, and cooking more, canceling that gym membership you never go to, or looking into cheaper power providers, you have to do what you have to do in order to make your daily life less stressful. 

Know that it’s not going to be easy but more so worth it. What’s a little sacrifice today, for a better tomorrow?

Look Into Ways to Increase Monthly Income

The solution for most people to reduce financial stress is to simply make more money. You could always take on a second job, but that’s not always feasible with people’s busy schedules. So what’s the next best thing? Investing.

You’re probably thinking, how can you invest in something if you already are struggling financially… Well, there are multiple ways to invest. You, of course, can invest in stocks and bonds, but you can also invest in real estate. Investing in real estate is much easier to understand for most.

You can invest by way of house hacking or renting a room (this isn’t going to require much or any upfront capital if any at all). For this, you may need proper legal documentation and rental forms. You can visit this URL here to find some compliant and easy-to-understand lease agreement templates. Another way is to invest in short-term vacation rentals. This is a pretty simple process as well. Most people use leverage through financing the property. You just have to find the right lending company.

Try to Maintain a Positive Mindset About It All

Getting angry about your financial situation isn’t going to do anything but make things worse. As you work your way into reducing your financial stress, establish and maintain a positive attitude about it by looking at it as a learning experience.

When you jot down all your monthly expenses and your debt, look at it with an unbiased eye. As you create a plan to reduce your financial stress, look at the unnecessary spending you regularly do, learn from it, and work towards making better financial decisions in the future.