The past few years have been challenging for many Canadians as the rising costs of housing, groceries, gas and other goods and services have seeped into many budgets. Canadians are concerned about their long-term financial well-being as the rising prices and reduced purchasing power weighs heavily on their minds and budgets. A survey for Bloomberg News found that 47 percent of respondents feel their finances have worsened over the past year.
If you’re in the same boat as almost half of Canadians dealing with money-related stress, it might be time to take a few steps to improve your mental health. The following tips can help you strategize and reduce money-related stress in today’s challenging economy.
Re-Evaluate Your Budget
Sticking to the same budget for a prolonged period can affect how you handle money. When inflation and other external factors influence your spending, it’s important to re-evaluate and refresh your budget.
Start by making a realistic outline of your income. Has your income changed over the years? Does your current income align with your current expenses? It’s important to adjust your budget based on your current financial status. For example, even if your income is the same, your purchasing power may have reduced due to high inflation rates. In that case, you may need to look for ways to reduce your expenses, which can involve changing shopping habits, using your car less to save money on gas, or negotiating bills with service providers.
Conquer Your High-Interest Debts
Debt is among the most significant factors influencing Canadians and their mental health. According to the Government of Canada, 48 percent of Canadians say they’ve lost sleep because of financial worries, which involve stress due to high levels of debt, management of household expenses, struggling to save expenses, and more.
Although high debt levels can influence your mental and physical health, paying off all debt at once may not be possible. Look for ways to conquer your high-interest debts by creating a feasible plan. This may also involve taking a short-term loan to pay off high-interest debts you have had for a long time. For example, if your credit card bill is exceptionally high and you haven’t paid off the total balance for a long time, you might hurt your credit score.
Consider looking into fast and simple options to access the cash you need. A reputable lender will offer you a loan with a simple application process and help you clear other debt. Choose a lender that focuses on reducing customer stress by being transparent about all the fees associated with the loan.
Seek Professional Support
Money-related stress can be overwhelming to bear on your own sometimes, significantly affecting your mental or physical health. If financial stress influences your life, consider talking to a professional, such as a financial advisor or therapist. Both professionals can offer you guidance in different aspects of money-related stress.
A financial advisor can evaluate your financial situation to help you find solutions that suit your unique situation. On the other hand, a therapist can help you cope with financial stress by introducing you to strategies that help you stay calm.
Dealing with money-related stress isn’t easy, but you’re not in this alone. Consider the steps above to reduce financial stress and navigate this challenging economic situation.