We are strong advocates of financial awareness. While the global pandemic has most of the world markets on their backfoot, it has allowed the emergence of entrepreneurship during this COVID-19 induced economic recession in search of opportunities. As a result, more and more people are becoming conscious of their financial situation. They are eagerly seeking effective methods at establishing their financial security for the long term and in case of further economic turbulence in the near future.
However, while we applaud the trend of increasing financial awareness, one alarming issue that has reared its ugly head among newbie investors and entrepreneurs is that the vast majority overlook the sheer impact and risks of financial stress. And so, today, we’ll be going over the importance of blending financial security with self-care and how you can efficiently declutter financial stress to a tolerable level.
#1 Always Begin with Your Budget
Many people mistakenly believe that their current monthly budget plans are perfect and in near pristine condition, but, in reality, everyone tends to leave some extra kinks around the edges that could be sanded down with a bit of tweaking. Plus, the budget is where it all begins, from the amount you’re able to save to the extra liquid cash you can free up for more investments; starting with our budget is priority numero uno.
- Remove Unnecessary Subscriptions: We live in a world where nearly every accessible consumer product or service operates on a subscription-based payment model. While the benefits may look appealing, this doesn’t remove the fact that it is a recurring monthly payment. And, for any aspiring entrepreneur who needs to free up more legroom in their budget, we strongly recommend going over your subscriptions and removing unnecessary ones.
- Start Cooking Your Meals: The global pandemic has enforced the habit of ordering food instead of cooking meals yourself, and although it doesn’t hurt to have it sometimes, the food bills do accumulate quickly. So, instead of defaulting to ordering your food from the local diner, it’s more financially sound to start cooking your meals to save just that little extra.
#2 Think Long Term; Don’t Fall for Short Term Returns
All investment markets have been erratic for the past few months, and it seems every financial instrument available offers an instant way to double, triple, or maybe even multiply your initial investment by a hundredfold in just a week’s worth of waiting. However, we strongly advise everyone not to fall victim to these short-term returns because it’s much safer to think long-term. Remember, if it goes up fast, it can and will surely come crashing down just as fast without a support level.
- Practice Patience And Perseverance: Many people sing the praise of dollar-cost averaging, but during times of erratic market movement, it seems that many forget this all-important principle. Therefore, always practice patience and perseverance, especially now, because sudden downtrends like Bitcoin falling below $36,000 again is not something you want to actively chase after.
- Don’t Disregard Your Fallback Savings: Although most financial efforts are focused on investing because of the current market climate, don’t disregard your fallback savings in the process. In fact, you should be looking at your fallback savings with more scrutiny, considering that the general market outlook has been clouded with uncertainty. Scaling up your safety cushion will net you a good capital to work back upon if anything unexpected abruptly occurs.
#3 Give Yourself a Pass Now and Then
Last but not least, while financial awareness and responsibility can sometimes mean being strict and ruthless to yourself, don’t forget to give yourself a pass now and then. If that calls for treating yourself to a fancy dinner or maybe spending a couple of hours on the electric massaging device, then, by all means, be our guest. It’s not healthy to constantly fill your mind with thoughts of speculation and opening your investment wallet every minute, so practice balance in your life.
- Operating at 100% Capacity Is Not Ideal: Working hard and exuding maximum effort are all ideal things, but operating at 100% capacity all the time is not sustainable. We don’t operate like robots and artificial intelligence that can run indefinitely on a power source. We are transformative beings capable of innovative thinking that get the most work done when we’ve rested well.
Your Financial Stress Should Be Manageable
To encounter financial stress is a sign of effort and progress, but it should never hold you back from living a fulfilling life. So take the advice above to heart, tailor it to suit your risk appetite, and ensure that your financial stress must be at most manageable in the busiest times.