Five Ways To Combat Financial Stress During Uncertain Times

30th September 2022
Financial stress is one of the most prominent drivers affecting New Zealanders’ physical, social, and emotional wellbeing, with a third of Kiwis being unhappy with their financial situation.* Fourteen per cent of New Zealanders have experienced a major worsening of their household financial situation since March 2020.**

 

Here are five steps you can take to reduce financial
stress and get your financial health, wealth and
wellbeing back on track.

1. Take stock of your situation. One way to help
reduce financial stress is to fully understand how
much money you have, how much is coming in each
month, and what bills are due. To get a full view of
the month, try mapping it all out on a monthly
calendar. Mark the date or dates that you expect to
receive income, as well as the due dates for your rent
or mortgage, utilities, credit cards, tax payments or
other fixed expenses. This will help you understand
your cash flow. 
If most of your bills are due within a one-week period or concentrated during a particular time of the month, it may make sense to contact your creditors to see if you can change some of your due dates or get an extension and preserve your cash flow.

2. Track your spending. If money is tight, try tracking your spending for a month or two to see how you’re
spending it. Write down each purchase and each bill paid in a notebook or spreadsheet. After your tracking period is complete, go through the list and see which expenses can be cut and which are essential. From there, try developing a monthly budget and sticking to it

3. Don’t try to make financial decisions all at once.
It’s easy to get overwhelmed when faced
with mounting bills and not enough income
to cover them. Instead of looking at your
financial problems in the aggregate, try
tackling them one at a time and spreading
out your decisions.

4. Remember your goals. Just because money
seems tight right now, doesn’t mean your financial
and life goals are any less important. Besides saving,
what are some other ways you can stay
on track and make progress? Some people
find that doing freelance work, selling
unwanted possessions or relocating to a
less expensive home can help generate extra
cash for the future.

5. Seek the guidance of a financial advice
professional. Financial advice professionals
work with you to understand your goals and aspirations. They provide recommendations and advice relevant for your situation and ensure that you have the knowledge you need to help you make decisions at critical points in your life. Accessing quality financial advice will help you be better prepared for the future,
more comfortable with your financial position and confident in your financial decision-making. To find a
financial adviser in your area visit area visit
www.financialadvice.nz

 

*Southern Cross Healthy Futures Report 2022
** Consumer experience with the financial sector report – FMA
*** Better Behaviours, research on the value of financial advice – Financial Advice New Zealand

Source:  Financial Advice New Zealand –

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