Money lets us buy necessities and plan for the future – and that’s great. However, money worries can impair mindfulness and well-being. I know, I know, most people nowadays think that money can buy happiness… but is that really so?
Financial worries can distract us from the present. We may obsess over our bank balance, past financial mistakes, and future financial issues. These thoughts can cause anxiety and stress, making it hard to focus and stay mindful or grateful for what we DO have.
Money worries can also cause a negative cycle. If we worry about money, we may focus on getting more rather than enjoying the moment. This can cause us to be ungrateful for what we have and always want more, making it hard to be happy and content. In the long run, these worries cause chronic stress, anxiety, depression, and cardiovascular disease. Overeating and sleep deprivation can also result from emotional stress.
A holistic approach to finances can reduce the negative effects of money worries on mindfulness. This involves examining our income, expenses, and money beliefs. We should be more mindful of our spending and budget for financial stability.
With that in mind, I’m going to offer 5 mindful ways to overcome your financial worries starting today:
Create a budget
Budgeting helps us manage our money and stop worrying. A budget is a plan for spending, paying off debt, and saving. By following a budget, you can track your spending, identify areas where you may be overspending, and make adjustments to maximize your money.
Gathering financial data is the first step in budgeting. Income, expenses, and debts. List your monthly rent or mortgage, utilities, groceries, and transportation costs. Include irregular expenses like annual insurance or holiday shopping.
Next, add up your salary, investment income, and other monthly income. Compare your income and expenses. Adjust your income or expenses if your expenses exceed your income. After assessing your finances, you can start allocating funds. Create housing, transportation, food, entertainment, and savings categories. Create categories for paying off debt and saving for retirement or a house down payment.
Based on your income, expenses, and financial goals, set realistic dollar amounts for each category. To avoid missing payments or overspending, automate bills, rent, and savings.
Of course, it’s important to review and adjust your budget regularly. This lets you check your progress and make adjustments based on unexpected expenses too.
Prioritize your expenses
Prioritizing your bills means paying the most important ones first. It sounds logical, but many of us still can’t master this skill! However, this will help you manage your bills and avoid late fees, penalties, and credit score damage.
As mentioned above, creating a budget will help you prioritize your expenses by showing your income and expenses. After creating a budget, you can prioritize expenses. Fixed expenses include rent, mortgage, utilities, and insurance.
Fixed expenses are essential for basic living, so pay them first. Late fees and penalties can add up and increase financial stress, so pay these bills on time. Credit card payments, loans, and mortgages should also be a priority because late payments can result in penalties and lower your credit score.
Once you pay your fixed expenses and debt, you can focus on variable expenses like groceries, entertainment, and clothing. Depending on your income, you can cut some of these spendings to stay within budget. After all, even a small savings budget can help you prepare for the unexpected and reach your financial goals.
To stay on track, review your budget and expenses regularly and make adjustments. This can help you find new ways to cut costs and save more while staying mindful!
Make a plan to pay off debt
If you’ve ever been in debt, you know the feeling. This financial burden can be overwhelming and distracting for anybody, especially if it seems impossible to pay off. To regain financial control and stop worrying, you need a debt repayment plan that works for your situation.
The first step? Gathering your financial data. This includes income, expenses, and a list of all your debts, including credit card balances, loans, and mortgages. Know each debt’s interest rate, minimum payment, and due date. Start with the highest-interest debt. High-interest debt costs more over time, so tackle it first. Focus on high-interest debt to pay it off faster and save on interest.
After prioritizing your debts, make a repayment plan. One popular debt repayment strategy is the “debt snowball,” where you make minimum payments on all debts and put any extra money toward the smallest debt until it’s paid off. Then you add the money from the first debt to the next smallest debt, and so on, until all debts are paid off.
The “debt avalanche” method involves paying off the highest-interest debt first and then the next highest. This method saves money over time but is hard to stick to. To pay off debt, review your budget and find ways to increase income or reduce expenses.
Paying off debt takes time and discipline, but by making a plan and sticking to it, you can reduce money stress and anxiety.
Practice mindfulness
Mindfulness can help us release past and future worries, including financial worries, by focusing on the present moment.
Once of the best ways to do this is to meditate, as this practice promotes mindfulness. Meditation involves focusing on an object, thought, or activity to calm the mind. Meditation can be guided, body scan, or mindfulness. Mindfulness meditation involves focusing on your thoughts, feelings, and physical sensations in the present without judgment or distraction.
Yoga also promotes mindfulness. Yoga involves meditation, breathing, and physical postures. Yoga reduces stress, anxiety, and overall well-being. Mindfulness can also be practiced in daily life by being present and focused. Paying attention to your breath and surroundings, focusing on the task at hand, and avoiding distractions can help.
All in all, incorporating these practices into your financial routine to reduce money-related stress and anxiety. Before checking your bank balance or bills, focus on your breath and let go of any judgments or worries about the numbers. Instead of worrying about how a purchase will affect your finances, try to enjoy it.
Mindfulness takes practice and can be hard at first, but with time and consistency, it can become easier to stay present and let go of money worries.
Look for additional sources of income
Starting a side business can boost your income. This could be freelance work in your field or a small business selling a product or service. The gig economy has increased opportunities to make money outside of a 9-to-5 job. Upwork, Fiverr, and Task Rabbit allow freelancers to find clients and make money.
Investing generates additional income. Stocks, bonds, and real estate can generate passive income. Investing is risky but it can yield high returns so it might be worth it. When investing wisely and having a well-diversified portfolio, you can reduce your long-term risks. High-yield savings accounts and high-interest CDs are safer ways to make money.
Airbnb and Turo can also generate extra income. For those with extra space at home or a rarely used car, this is a good option.
Finally, you can always sell your hobbies or skills. For example, if you like making things, you can sell them online. Meanwhile, stock photography websites allow you to sell your photos. A good cook can start a home-based catering business. There are no limits, truly!
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