There are tonnes of strategies to mitigate money stress and we’re going to share some of our financial advice with you!
As adults, at some point in our lives we all experience stress related to money, like – not having enough; spending more than we’re supposed to; struggling to manage expenses and save… or just simply being stuck in that loop of having no money. There’s no doubt about it, financial-related stress can keep us up at night.
The simplest way to reducing money stress is simply adopting a cash lifestyle! This means paying for everything you possibly can with cash. Cash allows you to be in control of your expenses, it forces you to plan limiting the purchasing power you’d normally have in your wallet… it sounds simple? Boring? But it works!
Let’s be honest, how many of us spot something when shopping that you know you shouldn’t buy but it’s just so easy to with your contactless card? It’s easier to spend when you don’t have to physically watch your money disappear. You aren’t watching the money drain from your account when you buy something using your card. Whereas it’s harder to part with your cash.
Having a cash lifestyle forces you to evaluate what you truly need. You’ll even sleep better at night knowing where every single pound is going, reducing stress and anxiety! For more about our financial advice just read on! Do not fear because YourCash is here!
Learning to manage your money
Being able to manage a budget is a valuable life skill. It takes time to integrate it as a habit but once you do, financial independence can be easily achieved! Aimlessly making purchases with your debit card or credit card can get you into serious trouble! Especially if you don’t know how much is in your account and then you go on a shopping spree without thinking about the financial consequences. It all adds up!
If you set yourself a weekly spending budget and withdraw your cash each week it’ll help you to stick to your plan for every expense. You’ll probably be much happier at the end of the month when you still have money left over!
Say you have a dinner to attend next week, set yourself a dinner budget of how much is safe to pay on average and withdraw your money. You’re less likely to be tempted by a few cheeky (but expensive) cocktails. If you feel like you don’t have a handle on your grocery spending, adjust your budget. By taking out cash and having a set amount to spend when shopping, you’re more likely to stick to your goals.
Wave goodbye to those impulse purchases
Impulse purchases are a killer! They may be the toughest things to overcome and we’re certainly all guilty! You’re heading into your local store to get some milk and bread and you see a strawberry milkshake, a chocolate cake, pack of biscuits and a sausage roll that you just have to have. It’s that element of self-control that we need to learn to tame so that this doesn’t happen because as said previously, it all adds up!
These spontaneously desired purchases may seem innocent at the time, “only £3.50 for a large coffee”, but the fact is that £416 is spent on impulse purchases in a year by the average Briton. According to the Office of National Statistics, an estimate of £21.7 billion is spent in Britain on impulse purchases annually! It’s crazy how much is carelessly spent when it’s not necessary! To find out more about impulse purchases in Britain, check out this article, you will be shocked!
Losing your hard-earned money to impulse purchases means that you’ll be less prepared to handle any emergency expenses. Living your life unequipped to handle what might come your way will just leave you in a flood of stress!
Having the cash conversation
Adapting your financial lifestyle is like adapting your food diet, you’ve got to stay motivated. You’ve got to find ways to keep going and that includes letting others around you know.
You’ll find that a lot of people avoid talking about money and budgets because it’s confidential and uncomfortable. But talking about it makes it real! This cash lifestyle will force you to face reality with your spouse or partner, with your children and your parents and perhaps even with your friends!
It’s an opportunity for evaluating your life as well as educating yourself to help better your future. It gives you a chance to evaluate the priorities in your life, what’s important and what isn’t, where you could cut down to then have money for other things. And it can even allow you to educate others so that they also learn how to better manage their expenses.
Teaching your children to pay with cash will give them the basic financial skills and values that they can progress as they grow up. To find out more about financially educating your children, check out a previous blog from us!
So the real question is… are you ready to take control of your finances and overcome stress? It’s easy with a few minor changes and you can begin today! Head to your nearest ATM and withdraw cash for the next week, give it a go. Take Nike’s advice and “Just do it!”.