Money: It’s stressing us out
Wells Fargo did a survey last year, and its official: We’re stressed about money.
56% of Americans are keeping money secrets.
39% have secret financial dreams, 43% of those keep it a secret because they’re concerned their dreams aren’t achievable.
50% of Americans feel anxious about money, and social media is making it worse. An estimated 47% of us are envious of how much money other people have. Exacerbated, no doubt, by the constant barrage of comparison traps found as we scroll through our socials.
What can we do about it?
First and foremost: build an accurate picture of where you stand. Go find your financial information: banks statements, loan statements, paystubs, investment accounts, credit card bills, utility bills, student loan payments - all of it. Write how much income you make, then make a list of all your payments. Your payments should include internet service, cell phone bill, health insurance, streaming accounts, HOA dues, automatic bill pays, everything. Go back over the last three months and determine exactly how much you spent and what you spent it on.
Second, build a budget. Use your current income, then prioritize your monthly payments from most important to least.
Side note: You should be spending less than you make. If this is not the case - it’s time to make a change. This isn’t a “consider spending less” suggestion. This is a “if you do not make a change, you could ruin your life” warning. Cut out your unnecessary spending (streaming services, I’m looking at you).
Once you have a good picture of what you’re bringing in and what is going out, review those numbers and see if there is anywhere you could cut back in order to increase your savings / investment rate.
Review your investments and retirement savings. Are they on track to meet your goals? Have you thought about your retirement and savings goals?
Find someone you trust - your spouse, a sibling, a close friend - and talk to them about setting investment / savings goals. If you have nothing saved or invested yet. Start with $1,000. It’s small enough to be doable, and large enough to be a substantial goal. Once you hit $1,000 - aim for $5,000, then $10k, then $20k, etc.
Take a day (or two, or three) a week where you stay off of all your social media. No doom scrolling, no comparisons, nothing. Play solitaire or Snake instead. Social media is making you anxious, so turn it off for at least 24 hours a week.
Avoid lifestyle creep. When you get your raise, it shouldn’t be an excuse to upgrade your clothes, car, phone, etc. Use a portion of that extra income to invest in your future: Whether that means paying off debt, investing in your retirement account, or saving up to purchase that upgraded car in cash instead of with an expensive loan.
Tell your family and friends that you want to do gift-less holidays, or give them a list of exactly what you need and ask for their list. Stop buying gifts just for the sake of buying gifts, it’s hurting your wallet and the environment.
Surround yourself with people who prioritize their financial well-being. Have you ever heard that you become the average of the 7 people you spend the most time around? Choose wisely. Unsure if you know anyone personally that can help? Consider joining an online group or community.
Lastly, as much as you do need to focus on putting yourself in a better financial situation, be sure to not let it consume you. If you allow it to consume you, you’ll stress about it more. Make the best plans you can, find support where you can, and find a way to still enjoy your life and destress while preparing for your future.
Cheers!