If you're currently worrying about money you can do a couple of things to reduce your stress:
- put things in perspective
- differentiate between trouble and worries
- avoid and reduce debt
- differentiate between desires and needs
Perspective
If you're living in a developed country chances are that you're better off than 90% of the world's population. You're also living healthier, longer and with a lot less worrying than 99% of people who lived before the 20th century. We're taking so many things for granted,
Trouble or worry?
If you just lost your job and you don't have money to pay your rent, or to buy food in the supermarket there is an urgent need. A lot of people are not in any urgent situation and they worry about money.
Avoid Debt
It's always best to avoid debt. But if you tend to worry about money avoiding debt is one of the best things you can do. Don't buy a new car if the only way to do so is by taking up credit. Better leave the car for later or buy a second hand car instead. Mortgages are a notable exception, since these are a great way to start building up capital instead of making your landlord rich. Also, the rates on mortgages are usually a lot lower than other types of loans without collateral.
Reduce your debt
Or at least choose "cheaper" debt with lower interest. If you have both a mortgage and personal loan, it's very wise to move your debt from your personal loan to your mortgage. First pay off your personal loan before making any down payments, if possible.
Another good idea is to reduce your spending as long as you have any high interest loans.
Desires vs. Needs
It's good to make a list of essentials, to see how much money you really need. Basic food, housing, heating, health insurance. Try to be "very cheap" for a week. Only buy the bare necessities in the super market, or even better at the outdoor market.
