​Finances and Stress, Stay Calm and Save!

Finances and Stress, Stay Calm and Save!

Money issues is one of the most common causes of stress in our society. There have been many surveys done over the years that demonstrate over 75% of Americans report feeling anxious about their financial situation. Financial anxiety can affect our self-esteem, relationships, performance at work and may even cause stress related illnesses.

As we all understand, feeling anxious about our financial situation will not solve our money issues. However, by figuring out the root of the problem and addressing the issue will begin the path to understanding and healing.

For many of our clients, the biggest stressor during the COVID outbreak has been no money or lack of money in emergency savings.

An emergency fund is money that is set aside to cover life’s unpredictable and unexpected events such as sickness, job loss, or an unforeseen car repair. Setting up an emergency fund is a practical way to reduce stress and ease the financial anxiety that comes from these life circumstances.

You may have read that the goal for someone setting up an emergency fund should be to have three to six months of expenses saved, however, this can be overwhelming for many as it could take years to save so much. What we recommend is a “starter” emergency fund of $500 as the first goal, and from there we can begin to save and build the fund little by little.

To set money aside for this purpose, we will likely need to make adjustments to maximize income and/or reduce spending (read our Money Savings Ideas blog). Adding even a small amount from each paycheck can help to create this essential cushion over time and gain more control of our finances. Think about meeting with a financial coach or counselor to go over your financial goals, a spending plan, and to discuss ways to jumpstart your savings. Here’s a link to our website where you can learn more.

No matter where you are currently, start small and start today!

Here are some tips to begin or boost emergency savings:

The Save First Blog

This is a financial blog designed to help you meet your financial goals. Our team of financial educators, counselors, and coaches discuss relevant topics for everyday financial matters.