How to Stop Worrying About Money (Habits to Form in 2021)
Published: 2021-02-02 22:05:03


Money is required for almost everything in our modern lives. Managing money can often be a challenge. Even the thought of the potential problems money can cause leaves many people worried and stressed. Learning the tricks and tips to stop worrying about money will not only improve your financial situation but will also improve your health and well-being by lowering your stress levels.

In this guide, we'll talk through some ways you can utilise to help you get better control of your finances and stop worrying about money.

**4 Habits That People with Surplus Money Have**

Part of a successful strategy to stop your worry about money is understanding how people who have surplus income, and therefore people who don't worry about money, manage their finances.

**They Are Prepared for Everything**
	
Possibly one of the best ways to stop yourself having to worry about money is to plan ahead and be prepared for the unknown. It may seem like a contradiction to plan for something unknown, but it's simpler than you think. The essence of being prepared is to always have a reserve to handle emergencies. When working out what you can afford, both now and in the future, always build in a percentage to cover emergencies.
	
**They Protect Their Money**

Setting up your finances to give you a safety net when you require it is only helpful if you can rest easy that the safety net is well protected. If you don't take good care of your money, then the safety net you have spent time building up to ease your mind might not be there when you need it. Be [careful with investments](https://dev.to/ilonacodes/my-top-10-finance-and-investment-books-for-developers-32ae), be especially careful to spread your money around rather than keeping it all in one place. Also, don't be afraid to move your money if the current location isn't offering the safety and returns you expect.

**They Have a Savings System in Place**

Savings can be useful for a variety of reasons. Whether you use them in the case of an emergency, for a big upgrade purchase (e.g. a new car), or a luxury treat, having a savings pot to fall back on can add a valuable safety net to stop you worrying about money. It can be hard to motivate yourself to [save money](https://dev.to/eva_william1/the-best-ways-to-save-money-in-2020-3poj), though, so having a good system in place is essential. For example, rather than just saving some money when you remember, try setting up an automatic transfer as a percentage of your income each month.

**They Know When to Get Help**

The final trick is knowing when to ask and seek out help with your finances. Help can come from many places from friends and family to formal financial institutions. The important thing is that you seek out help and advice when you are unsure. Asking for financial guidance will pay off in the long-term when your money is safer and works for you. Also, don't be afraid to seek out help in the form of loans, but only when absolutely necessary. A small influx of cash at the right time, even if you have to pay it back over a term of years, can make a significant difference, but borrowing money for needless expenditures can end up causing more stress and worry.

**Increase Your Sources of Income**

Sometimes saving and scrimping can only go so far when it comes to free up additional money in your budget. If your income sources can't keep up with your expenditures, then it doesn't matter how much you cut back and save, you will still be left with a deficit and end up worrying about money. In that case, the only thing you can do is look for ways to increase your income.

Increasing your income can be done in a number of different ways depending on what resources you have available and how much extra money you are looking to raise. Some amounts of money can be raised, and saved, by selling old items that you would otherwise throw away, for instance. If you are looking to raise more than a bit extra, though, it may be worth considering getting a secondary source of income. Freelancing and gig type work can be an excellent way to supplement your income without committing to the full hours of a second job.
	
**Cut Out Unnecessary Luxuries**

One of the singlehanded best ways to increase your cash flow and help you stop worrying about money is to cut out unnecessary luxuries. The key term here is unnecessary, though. Saving some extra money, and thereby increasing your savings and cash flow, doesn't mean cutting out all luxuries from your life; the trick is to cut out the unnecessary luxuries. With every purchase and luxury, first, ask yourself if this is something you truly want or need, and then ask if there is a better and cheaper solution you can use to save yourself some money. For example, if your furniture is looking a bit worn, before rushing out and spending lots of money on a new set, thinking about spending a fraction of the cost by [restoring your old furniture](https://www.kennardshire.co.nz/blog/cat/diy-information/post/how-to-restore-your-timber-furniture-and-decking/) first.

Very few people don't have to worry about money at all. It is the elite minority that has the luxury of never thinking about their bank account balance for both the big and the small. For the rest of us, money is a constant consideration. While we all have different circumstances and resources, everybody finds themselves worrying about money at one point or another. Whether it's affording the necessities or luxuries, having a reserve for when something breaks, or saving up for a holiday, money is always a concern. Using the tips and advice in this guide, you can learn how to plan and improve your financial status to help you leave concerns and worry about money in the past.