Three pillars to reduce your financial stress

Three pillars to reduce your financial stress

 
Throughout your working life, your journey will be punctuated with stimulating projects, from buying a home to arriving at retirement. However, they could be accompanied by new financial responsibilities. While these plans are often a source of happiness, at times they can feel like we are losing control of our finances.

Half of respondents to a 2018 survey on financial health and wellness conducted by Desjardins among approximately 3,000 Canadians mentioned that their financial situation is a source of stress in their lives. This same study also reveals an important link between a person's financial situation and their psychological and physical health.

Among the often cited sources of stress are:

lack of emergency funds for unforeseen events;
too heavy financial obligations and debt;
saving for retirement.
So here are some tips on how to better cope with financial stress, whatever the source.

Detect traps

The first steps in understanding your financial situation are knowing how much money is coming in and out of your account and how much is your financial commitment. By reducing expenses and these commitments, you will be able to free up leeway that could be useful in the event of the unforeseen.

Here are three simple tips to help you define and reduce your spending:

Withdraw a specified amount and pay in cash only.
Keep invoices for your purchases paid by card and your purchases online and with your phone, and add them up regularly to get a feel for your spending habits.
Use the credit card for short-term funding and pay off the balance in full on the statement due date.
The budget, your ally

With the portrait of your expenses and your income, you will have better control of your finances. According to Angela Iermieri, financial planner at Desjardins, your budget and your financial capacity must guide you in your choices and decisions at all times.

“To get the most from your day-to-day life, you absolutely need to protect your financial health and reduce the stress of money,” she says. To achieve this, take advantage of one of your best allies: the budget! "

Saving, an essential habit

While saving may seem like a difficult task with new financial responsibilities, there are several ways to incorporate it into your planning. Even when the expenses are numerous, saving remains a habit to favor. “With periodic payments, no matter how small the amount set aside, you will save without even thinking about it,” says Angela Iermieri. Whether it's picking up loose change or automating a transfer to your savings account, you'll be able to build yourself a financial cushion to face the unexpected.

To find out more about your financial health and better assess your stress related to your financial situation, visit our Financial health and wellness area.