Financial stress can significantly impact mental well-being, overall health, and relationships. According to a 2023 Compare the Market survey, 61% of Australians identified personal finances and bill payment ability as the primary stressor last year. Financial stress may stem from factors like the cost of living, job loss, unemployment, debt, or illness affecting income.
Here are some strategies to manage money worries effectively:
Establish a realistic budget and adhere to it. Budgeting helps monitor income, expenses, savings, and goals. Online tools and apps can assist in creating and tracking budgets.
Focus on reducing debts. Paying more than the minimum amount on high-interest loans or credit cards can lessen interest payments. Debt consolidation or prioritizing high-interest debt repayment can be beneficial.
Create an emergency fund for unexpected expenses. Saving for unforeseen events like car repairs, medical bills, or job loss is crucial. Ideally, aim to save three to six months' worth of living expenses.
Safeguard finances with Income Protection and Total and Permanent Disability insurance. These insurances offer financial support in case of temporary inability to work due to illness or injury, or permanent disability.
Seek professional assistance if overwhelmed by financial stress. Financial advisors can help assess options, create a financial plan, and provide peace of mind for the future.
Reference: The Top Causes of Stress | Compare the Market Accessed January 2024. Note: Any advice is general and may not consider individual needs, objectives, or financial situations. Obtain and review the Product Disclosure Statement before making financial decisions.
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