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Guide To Reducing Financial Anxiety

Do you often worry about how much money is in your bank account? Do you stress about managing your daily finances? Do you find yourself stressing about the cost of living?

If the answer is yes to any of these questions, you are not alone.

Financial anxiety and stress is one of the most common causes of stress for Aussies, and for many of us it can feel overwhelming and sometimes consuming which leads to us feeling worried all the time about our finances.

What is financial anxiety?

Financial anxiety is the constant worry about money. It can range from fretting about paying an upcoming bill, to feeling stretched to pay back a loan or feeling uncertain about your financial future.

Feeling financially anxious can lead to a strain in relationships, with the topic of money being a topic of dispute which can lead to unhealthy behaviours such as hiding your spending habits or avoiding talking about your finances altogether.

It can also affect our physical health leading to not sleeping (insomnia), added daily stress and a general sense of dread when thinking about money.

Recognising the signs is the first step towards addressing the issue and taking action. There are ways to help ease your financial anxiety by first understanding your financial situation and then putting practical steps in place to help yourself feel more in control.

Here are four ways you can help reduce your financial anxiety and help combat debt and stress so you can feel better about your financial future.

1. Set a realistic budget

Writing down your expenses and making a budget is the first step to help you get a clearer picture of where your money is coming in and going out, helping you see where you can cut back (cutting down to one take-out meal for dinner a week) or funnel extra money into (like a savings account).

Start with being honest about all your income and expenses. Technology can be a great ally here, with numerous apps and tools available that can help you get started.

Once you can see a clearer picture of your finances, setting goals about spending and saving becomes easier and puts you in a better position to make smarter financial decisions and grow your wealth.

2. Prioritise emergency savings

The importance of savings cannot be underestimated. Emergency savings are a financial safety net designed to cover unexpected expenses such as paying for an urgent car repair, sudden job loss, a fine or a medical emergency.

Achieving might seem daunting at first, but making small regular contributions add up over time, offering peace of mind and reducing reliance on credit in times of financial need.

It might be worth setting up a separate account for your emergency savings to sit to ensure you reach your goal and are not tempted to dip into the funds.

3. Consider a financial advisor

Financial planning can be complex as there are many factors to consider, such as investments, taxes, retirement, and estate planning. With so much to think about, many Australians consider the advice and expertise of a professional financial advisor.

A qualified financial advisor can help you navigate your finances, provide tailored advice based on your financial situation, and craft a financial plan that addresses your needs and goals.

Whether you’re worried about debt, looking to amplify your investment strategy or retiring early, a financial advisor can help set up financial security and growth.

4. Effective debt management

Debt can have a significant toll on any household’s budget. By learning how to manage your debt, you can help overcome financial stress and help reach your goal of becoming debt-free.

Most Australians carry around $18,000 of personal debt, with around $1,948 in credit card debt, $6,920 in personal loan debt and $11,370 in car loan debt.

One method that’s helped many Aussies get on top of their debt is debt consolidation. This involves combining multiple debts into one single loan with a lower interest rate.

This helps simplify your repayment process by allowing you to pay off one loan at a time, potentially lowering monthly payments and can help you save money on interest over time.

How can Salt & Lime help me?

At Salt & Lime, we’re dedicated to helping you navigate the complexities of personal finance. Our debt consolidation loans, coupled with educational financial modules and interest rate discounts, offer a comprehensive solution designed to empower you towards financial independence.

Embrace the journey towards financial empowerment with Salt & Lime. Contact us today to explore our loan offerings and discover how we can help you achieve financial peace of mind and a prosperous future.

If you’re looking for a lender who can help you take care of debt and stress for good, Salt & Lime is the perfect place to start.

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