With soaring inflation and the cost of living crisis affecting all of us, now is the time to tackle your financial worries for a better peace of mind.

Times are more than a little tough right now. With the costs of living crisis biting, families are facing a real struggle as inflation is soaring to levels not seen in over 4 decades. When you look at just how hard times are, there’s no surprise that people are experiencing money worries. Levels of money stress are at a point where they’re beginning to cause harm.

While this may all sound like it’s coming down on the side of doom and gloom, there’s good news here too. The truth is that we’re all capable of taking control of our money worries and bringing ourselves back to a place where money stress is a thing of the past. Read on, and we’ll share the exact steps that you need to take to get your finances back in order. 

Acknowledge that there’s a problem

If you want to take control of your money worries, the first step is to admit that there’s a problem in the first place. You may be feeling the anxiety eating away at you day after day, but until you admit to yourself what’s causing the problem, there’s little that you’ll be able to do to address it. The first person to be honest with is yourself.

After this, it’s a must to share it with family members in the same household: there will be decisions that need to be made regarding expenditure and you need people on side and aware of why things need to change. It’s also worth opening up to wider family and friends as these people can often be a great source of support.

Be aware of the potential impact on your mental health 

There are clear links between money stress and poor mental health. This is something that you need to be aware of as you start your journey to a better place. It’s not uncommon for money worries to stop people from sleeping and to cause physical symptoms such as headaches and nausea. These all build and your mental health ultimately pays the price.

Take a look at websites, such as the NHS, that make suggestions as to how you can deal with stress. Master the art of meditation and mindfulness and ensure that you’re also keeping your body active. Physical activity triggers a release of endorphins that many professionals argue are more effective than antidepressants or anxiety medication.

Talk to your creditors 

One of the biggest sources of money stress is the postman/woman arriving at your door. There is a sense of dread as envelopes hit the door mat as you know exactly who these letters are from. Your creditors are in regular contact letting you know how much you owe, the payments that you’ve missed, and the potential consequences.

To lessen your money worries you need to learn to communicate too. Let your creditors know just what’s happening. You’ll find that many will appreciate your honesty and there will usually be a solution that can be found. Ultimately a creditor will want their money back, but that doesn’t mean that they’re not prepared to compromise with how long that may take. 

Start to make a plan

You’ll have probably already realised that you can only avoid your money worries for so long. The time comes when they have to be faced and dealt with. By making a plan you’re taking control of this and feeling this sense of control can be truly liberating.

Work through your finances and establish exactly what is causing you money stress. Is it a lack of income from your job? Do you have significant credit card debt that’s starting to hurt? Have you made investments that just aren’t giving a decent return? Once you know exactly what is causing your pain, you can start to formulate your plan and start a journey of correction. 

Get budgeting

Okay, so setting a budget may be a little on the boring side, but it certainly works. Start by reviewing your income and outgoings. You need to know exactly how much money you need each month and you need to know how close you are to achieving this. Once you have these numbers, you can start allocating your spend more wisely and controlling your finances.

There are numerous budgeting apps out there that can help. They can categorise your spending habits and then give you a warning as you approach your set limit. These apps can provide you with a real insight into exactly where your money goes every month and they provide a great way to take control.

Start the saving habit

One of the biggest causes of money worries is, perhaps unsurprisingly, a lack of money! Okay, that may sound a little obvious so let’s clear up what we mean. The issue that many people face is that when they hit an emergency situation they have nowhere to turn. Say a car breaks down or your boiler needs a repair, knowing where to find the funds to sort these can cause huge amounts of stress. If you can learn to save you can build up an emergency fund.

This means that when life throws a spanner in the works you can be free of money stress as you know that you have the funds to put things right. Again, there are some great apps that can help you master the art of saving.

Seek help

If you reach a point where you seem unable to take control of your money worries just realise that you’re not alone. It’s extremely common for people to experience money stress at some point in their lives and, when control is slipping away, it’s vital to seek help.

It may be that you tap into the knowledge of a financial adviser. It could be that you utilise what charities have to offer such as Citizens Advice and StepChange. These organisations can assist you to deal with creditors and can offer a wealth of support and advice.