Get educated about your finances and make better decisions
People worry about money for a variety of reasons, but money worries revolve around a core set of questions.
How are you going to pay the upcoming expenses? How do you make enough money to pay for a vacation, experience, or something else?
These are important questions that need solid answers. Some people who don’t have a solid path to paying off expenses let the worry consume them. Others do the necessary work to dig themselves out of the hole and remove the stress associated with money.
If you want to ward off money worries, follow these steps.
Crunch Your Numbers
Many people are after more money, but the problem with more money is that there’s no limit.
While this is a blessing because there are no restrictions to how far you can go, it can be this very environment that causes a lot of money stress.
The less you know about your finances and how much money you truly need, the more worried you will become of your money situation.
Worry stems from uncertainty. The more of that uncertainty you remove, the less worried you will be about your money.
Understanding the numbers behind your financial situation is the first step to eliminating worry.
Rather than simply saying that you need more money, you put a number to it. An extra $2,000 each month may be a big goal, but it is a quantifyable goal that goes beyond “make more money.”
Not only can you figure out how much money you need to afford extra experiences, but you can identify dead weight expenses to trim off your budget.
$100 saved is $100 earned, and it will trim your $2,000/mo goal down to $1,900/mo. Don’t underestimate the power of cutting down on small expenses. They add up over time.
Diversify Your Income Streams
Most of the people who worry about money fall into two camps. The first camp comprises of people who make a consistent income but know that income is not enough.
These people work 40 hours each week but always feel like they end up short.
The other camp comprises of people with inconsistent income streams. Sometimes these people make $5,000 in one month, but they could end up making under $2,000 the following month.
If you don’t work at a job and make inconsistent income, you may fall into this second camp.
The solution for both of these scenarios is to diversify your income and eventually figure out what works the best.
There are plenty of side hustles you can choose from, and I outlined some work at home side hustles that can bring in an extra $1,000 each month in a previous article.
3 Different Online Side Hustles For An Extra $1,000 a Month
Every dollar adds up. Here’s how to make an extra grand…
Plenty of side hustles can evolve into full-time income streams, and even a few extra hundred dollars each month can go a long way.
The time most people spend worrying can turn into an extra income stream, and you won’t get paid to worry about your money.
Knowing how much additional money you’ll need each month can help make ends meet and provide better experiences. You can take this a step further and decide how much money you want to make from your side hustles each month before quitting your job…if that’s something you want to do.
Think About The Future But Live In The Moment
To get out of any money hardships or achieve incredible wealth, you have to think about the future.
Every dollar you spend, how you use your extra time, and who you spend time with.
All of these decisions affect who you become.
However, you also have to live in the moment. You can be a forward thinker, but if you dwell too much in the future and focus on what you don’t have, worry will build up.
You’ll eventually overlook what you currently have and not be grateful. This happens to every single person at some point. Some people are still in the middle of this and have been in this mental state for most of their lives.
Make the decision to live in the moment while growing so you’ll be better off in the future.
Money doesn’t have to be stressful. It boils down to figuring out how much money you need, determine what action steps you’ll take to fill in the gap, and determine how you’ll advance once you fill in the gap.
Money is important, but there’s more to life than money. Spending a day to assess where you are with your finances can take much of that worry off your shoulders and shift you from panic to action.