How not to stress about money

Follow these tips to reduce your money worries.

Let's face it, money is very important. Even if you don't necessarily agree, you can't argue that money, in today's society, is certainly on the list of necessities, like air and water.

A lot of people consider money to be the key to happiness, but this isn’t true. In fact, many people between the ages of 25 and 40 think dealing with money is stressful and overwhelming. If it wasn’t, why would we seek professional financial advice? The tips below will help reduce your stress and make handling your money seem effortless.

  • Prioritise your goals

When you change the way you look at money and direct it to your priorities in life, you will begin to reduce your stress. Organise your goals and figure out which one is most important to you. Once you do that, you can allocate a set amount of money to that goal so you can feel more secure. Sorting out your priorities will help shape the way you spend your money.

If your long-term goal is to buy a house, organise your budget to help ease the stress of potential future mortgage or loan repayments.

Main reasons why people find money stressful:
  • They didn’t learn anything practical about money in school
  • They don’t talk about money
  • They’re forced to make money choices daily
  • Talk about money

This may seem like an odd tip. Surely, if money is constantly on your mind, you’ll be more stressed about it. But that’s the problem; you can’t just ignore it and hope it goes away. Make money a discussion point. Choose a time when both you and your partner are in a good mood and open to new financial ideas. If you need another opinion, talk to a professional and address the uncomfortable truth: what to do about the money. It’s always good to get an objective view such as a financial planner. Plus, having someone else manage your money could mean less stress for you.

  • Focus on the progress you’ve made

We have a tendency to magnify the bad and minimise the good. Sometimes, we’re drawn to the negative. For example, let’s say you want to save $500 a month for two years so that you can put a down payment on a house. After four months, you find yourself focusing on the $10,000 to go and not the $2,000 you’ve already managed to save.

Instead of focusing on the daunting big picture, think about the amount you have saved or the progress you made.

  • Protect your plans

Protect your lifestyle with a solid personal insurance portfolio. A portfolio is a smart way of transferring your stress to an outsider such as an insurance company. It’s always good to have a plan B firmly in place. The trick with insurance companies is not to get complacent with the default cover you get through your employer. Do your research and plan ahead so you can protect your finances and remain stress-free.

  • Combat worries with financial advice

People have a habit of worrying. The stress of work, life, family and friends all add up to a fair amount of worrying. But there is a way to manage this stress. First, divide your worries into two categories: the things that can be changed and the things that are out of your control. This will help you manage your worries and decrease your stress. Next, seek quality financial advice. It’s better to get this help earlier in life so you can remove bad money habits sooner rather than alter.

  • Don’t be perfect

The difficulty surrounding financial decisions and contradicting information combined with a lack of knowledge, experience and time will create stress if you’re particular about how you handle your money. A lot of people then choose to do nothing rather than taking the risk of getting it wrong.

Doing something is always better than doing nothing. Ignorance is not a reason to do nothing. A subtle change can go a long way. Your account can always be looked at and improved by a professional.

Most stresses in life come from uncertainties and a fear of the unknown. Planning your life and finances will provide you with a greater level of comfort.
Picture: Shutterstock

Shirley Liu

Shirley is's publisher for banking and investments. She is currently studying a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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