Feeling stressed this tax season? You are not alone. According to the American Psychological Association, 62% of Americans cite money as a significant source of stress. By taking steps to understand your finances, you can reduce this stress, improve your overall health, and set yourself on the path towards financial well-being.
Financial well-being means understanding your current financial situation and preparing for future changes. A helpful first step is looking at your current financial status. What are your goals? Do you have a budget to follow? Are you currently saving for retirement? If not, how can your current employer contribute? These are all important questions to ask. Check out our tips below for staying on track with your finances.
Create a realistic budget
The best budget is one that you can stick to. Track your spending to see exactly where your money is going. Try using a budgeting worksheet to break down your expenses by category.
Organize your expenses
Take some of the stress out of your finances by keeping yourself organized. This means knowing when payments are due and planning ahead to save for bigger expenses. Keep a checklist of your bills and expenses each month, and keep track of the date paid. Refer back to your budget on a monthly basis to make sure you are staying on track.
While this may seem easier said than done, a good first step is making a list of your total debts, monthly payments, and due dates. Make sure to factor these into your budget, and pay bills on time each month.
Sources: Bank of America, Consumer.gov, American Psychological Association. The Health Tip of the Week is for educational purposes only. For additional information, consult your physician. Please feel free to copy and distribute this health resource.