1. Identify Stress Factors
- Make a list of your long-term and short-term financial goals and commitments.
- Determine which factors are causing or may cause financial stress in the near future.
Stress-inducing factors include behavioral disorders, gaming & internet addiction, alcohol and nicotine addiction, and others.
2. Recognize the resources available to counter the stress Factors.
- After you’ve meticulously listed all of the stress factors, decide which ones must be eliminated for the sake of the greater good.
- Some of your financial stresses may be comparable to achieving positive long-term outcomes.
Now examine all the stress-reduction options available to you.
3. Eliminate the unwanted & retain manageable stress factors.
- Remove any unnecessary stress factors with care.
- Keep those that can help you in the future, such as paying your insurance policy premiums.
Even if you feel compelled to break a FIXED account or stop paying Medical or Insurance premiums, do so only as a last resort.
4. Reduce the Rigidity of your Budget.
- Having a personal budget during the pandemic reduces the likelihood of people going into debt.
- Long-term budgeting will allow us to plan for our income, resources, and expenses ahead of time.
Maintain a flexible and upbeat budget that does not become stressful to you.
5. Have as much Liquidity as you can
- It is always preferable to have a sufficient amount of cash on hand during an emergency.
- Even if you come across multiple alluring investment opportunities, keep a sufficient amount of cash on hand to get through a difficult period.
Make sure your emergency funds are easily accessible to your immediate family that can make all the difference between having one and none.