1/2/18

Face Your Fears & Defeat Financial Stress


By on 1/02/2018 08:17:00 AM

It doesn’t matter whether you earn a small fortune or a pittance, it seems like money worries are suffered by every household and family. Sure, a nice pay packet at the end of each month can help reduce your burden, but it still doesn’t guarantee you a stress-free financial family life.

And the reality for the vast majority of households in the country is that they are only one paycheck away from disaster. If someone in your home lost their job, how easy would it be for you to survive without making significant life changes?

Finances are also a considerable cause of arguments and conflicts in the home, and money is at the root of many divorces and separations. In short, money and finance are headaches that we could all do without.

The big question is, what can be done about it? We’ve scoured the web to find some of the most prominent causes of financial stress you will experience in the household, and will also reveal a few ways of limiting their damage and dealing with them. Let’s take a closer look - read on to find out more!


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Not Earning Enough Money

You might think this common issue is only a problem for low-income families, where just one person in the household works and earns a small amount of money. But it is a problem that is equally as rife amongst higher earners. The reality for many families is that they spend more than they can afford, whether by taking out loans, using credit cards, or dipping into overdrafts. So, while it might be incredibly painful to hear, the truth is that if you are having problems with not earning enough to pay for your lifestyle, you have to make lifestyle choices.

Look for ways to eliminate unnecessary expenses as much as possible. Perhaps you can stop eating out once a week, and try your hand at cooking a nice meal at home instead. Take your lunch to work rather than spend a fortune at your local sandwich store or burger joint. And be honest with yourself - draw up a budget and really get to grips with where your money is going. Pretty much every household overspends in some way, and if you can stop the rot now, you will find life becomes a little more comfortable.

Spending Too Much on Debt

According to research, the average household has around $15,000 on credit cards. Graduates leave college with debts of somewhere between $30,000 and $50,000. And the reality for many families is that debt is a crippling experience.

So, if you are struggling with debts, it’s vital to get to grips with them. Stop using your credit cards, and find ways of paying it off - it won’t go away. It will take time, and it will be hard, but as you pay down your debts and reduce the amount you owe, you will feel the financial noose around your neck loosening by a significant amount.

Healthcare

The cost of healthcare in the country is astonishing, and lots of people get a nasty shock when they realize their medical insurance doesn’t cover them for particular illnesses or accidents. You can easily spend a five-figure sum on a two-night stay in hospital - even the cost of minor issues and treatments can be eye-watering. It’s vital that you research all your medical insurance options as carefully as possible, and don’t forget to read the small print. The last thing anyone needs is to pay retail rates just for the fact you get ill.

However, to prevent illnesses occurring regularly, there is something else you can try. Make sure that health and fitness are a priority for your family, and you will find that you will all lead a healthier, longer life. If you want to insulate your family from the financial stresses of ill health, provide them with plenty of opportunities for good, clean food and lots of exercises.


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Taxes

No one likes those times of year when you have to send off your tax return., And even when you are incredibly careful, the complicated process of filling out dozens of forms and tracking all your expenses can result in a mistake being made. But, as The Alexander Law Firm points out, the IRS doesn’t take kindly to errors. If you are the subject of an inspection, it can be an incredibly stressful and challenging experience. The tax man will go deep into your finances, possibly a long way back in time, and you could end up with a fine - or even a prison sentence.

To prevent significant tax stresses, always use an accountant - or at the very least a qualified bookkeeper. And if you do get into trouble for a mistake you have made, never go it alone - always use the help of an experienced tax lawyer.

Conflicting Philosophies

As we discussed in the intro, arguments about money are the single biggest reason for divorce in the country. And strangely, it’s not the amount of money that’s the issue - it’s the differences in values and goals that cause the most issues. The reality for many couples is that the big talks about finances never really happen until they start to matter. When you are young and have no responsibilities, the last thing you want to talk about is household finances.

However, as your responsibilities change, so those conversations come to the fore. If you aren’t on the same page, then you can expect some big problems and plenty of arguments. If you want to save your relationship, it’s vital that you can talk things out on a regular basis. Sort out strict budgets that allow for plenty of saving and some random discretionary spending. And always try to take preventative measures that can stop arguments turning into full-blown fights. Finally, never forget that regardless of your personal philosophies about money, staying together will always work out cheaper than going through a long and drawn out expensive divorce.

What are your family finance stresses? Share your worries in the comments section below!

About Angela

Angela is a freelance travel writer and lifestyle blogger, blessed with 3 beautiful daughters, 5 moody cats, 1 spoiled dog, and 1 very supportive husband.

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