Too much debt, not enough money, the studies of children to finance, a marriage to pay, the car that falls in jug … There are many reasons to be stressed because of his personal finances. This has a huge impact on all aspects of life and can be a source of difficulty concentrating on work, tense relationships with people around you, sleepless nights. To help you reduce your anxiety, Café du Patrimoine offers 3 tips that will help you better manage your financial situation.
Create a budget for your personal finances
At first glance, you may think that creating a budget will only add to your financial stress, but it’s actually the best tool at your disposal to better control your finances. You can finally stop worrying about your financial situation. A budget allows you to decide when and how you will spend your money. This is an expense plan that will help you achieve balance every month and allow you to save more easily, or, at first, repay your loans.
The first months of planning a budget are the most difficult, but once you have defined and quantified your monthly needs (food, gas, electricity, telephone operators, gas, clothing, etc.) also taking into account the outputs money to match your loan repayments and the constitution of your savings, you will be able to significantly reduce the time you spend on your finances, but also the time spent worrying about your financial situation. Your budget management will give you control over your expenses, and even your finances.
Budget management tools
If you’re having real trouble managing your budget and expenses, turn to the many apps (big banks or not) that offer budget management tools. You can also invest in a book specialized in the subject, consult our pages Café du Patrimoine dedicated to personal finances.
The services of a wealth management advisor
If you have substantial income but do not know how to manage your money, get more performance on your investments and / or place your money according to your personal and family projects (finance a real estate project, build savings for retirement, etc. .), a wealth management advisor can help you manage your finances with tailor-made solutions.
Constitute a security savings
Emergency funds, security savings, these terms refer to the amounts you put (or need to put) aside to cover unforeseen expenses. Even though a car repair is expensive and a bit stressful, if you know that you can tap into your emergency fund to finance it, a lot of the stress will go away. It’s also easier to stick to your budget if the unexpected is not part of it because it’s funded by your security savings.
To ensure in case of a blow (you are never safe from having to pay € 1,000 locksmith), be sure to have a substantial cash savings: € 1,000 is a good start. If you are not in debt and do not have credit to repay each month, save up to 3 months of current expenses on your emergency fund. If you are heavily indebted and have difficulty paying your monthly payments, talk to your bank or a credit buy-back organization to see if consolidating all of your credits could improve your situation.
Define assets and weaknesses in revenue and expenses
Stress related to your financial situation is most often caused by the fact that you can not really identify the problem, and therefore, to contain it. Are your difficulties due to the fact that you have little income? Too much expense? A combination of these two factors? If you think the problem is a low income, consider what you can do to improve the situation: ask for an increase, check that you are getting the help you are entitled to, get training, or even go back to work. the school benches to earn less in the short term but more in the medium term, or take a little job to round off your ends of the month.
If on the contrary the problem is primarily related to the expenses, the mere fact of being aware of it should arrange things. Avoid temptations and, before each purchase, put into the balance the pleasure you have felt in buying the object of your lust and the discovery followed by the phone call from your banker that the expense will generate.
Once you have identified the source of your financial difficulties, it will be easier to change the situation and you should see your stress related to your money worries drastically decrease.
Finally, to reduce stress, note all the positive aspects related to your personal finances. It’s not so much about telling you that it could be worse than looking at your day-to-day management progress or noticing the success of your financial goals.