Six steps to take if you are under financial stress
With the cost of living rising, many adults in the UK are grappling with financial worries that can impact both their wallets and mental health.
A recent survey by the Office of National Statistics reveals that over 75% of adults share these concerns, with half of those feeling the strain daily.
Money worries can quickly spiral out of control, but support is available. Legal & General have provided some simple steps and advice on how to take back control if you are struggling with financial stress.
Six steps to take if you are under financial stress
Facing financial challenges can feel overwhelming but breaking it down into manageable steps can ease the stress. Here are six steps to help you get started.
1) Face up to the problem
Facing up to any problem is the first step. However scared you are, open the envelopes and check the apps; you need to know your current position. If you’ve got a sympathetic friend, get them to hold your hand while you do so, or find professional help
2) Work out how much you have to live on
The next step is to work out your day-to-day money. You need to know what it takes to keep the roof over your head, food on the table and the means to get to work. You might find Legal & General’s online budgeting planner useful.
Take your time over this: if you’ve never kept a record, it could take a while to work through bank statements and credit card bills. You can calculate it as weekly, monthly or annual totals – it’s up to you.
3) Get into better money habits
The third step is to evaluate your money management processes. Do you check your bank statements on a regular basis – perhaps you could set a reminder on your phone. Have you set up direct debits for utility bills to go out straight after your paycheck drops, so you know you’ve got those bills covered? Keeping track of your money is an ongoing task, like cleaning your teeth.
4) Cut back on unnecessary spending
Once you’ve got the basics of living expenses covered, think about the more variable spending, such as clothes or travel. Once you’ve added it all up, you can see whether your outgoings are more than your income. Some questions to ask yourself include:
- If it does, can you see any areas where you can cut back?
- Have you been generous with Christmas and birthday presents and can you cut this down?
- Can you find a cheaper broadband deal?
- Are there other areas where you could make changes or swap to cheaper brands?
Throughout this process, it’s important to prioritise what matters most to you. Staying active and maintaining friendships are essential for mental health, so try to balance pleasures with spending.
Financially savvy choices like swapping an expensive gym membership for outdoor runs or free online workouts can help but focus on what works for your routine. If the gym is key to your motivation, consider cutting costs elsewhere instead.
5) Regularly practice self-care
If you’re struggling with mental health, self-care is crucial – regular meals, maintaining a routine, and scheduling tasks like laundry can help prevent further decline, particularly if you’ve lost your job or your employment has changed.
6) Get help with debt
You don’t need to deal with your money worries alone. If you’re in debt, look for free advice services such as National Debtline or Citizens Advice. There are people who can help you make sense of financial problems, and guide you through whatever situation you are in.
Read more advice on dealing with debt
You can read more advice on how to deal with debt in these articles:
