This Youth Mental Health Day, we unpack four ways to help alleviate financial stress.
When facing financial challenges, you may feel as though the weight of the world is on your shoulders. There’s always a way out, and we’re here to share a few tips to help alleviate financial stress in order to set yourself up for financial wellness and improve your mental wellbeing.
Here are four ways to alleviate financial stress:
1. INVEST FOR LONG-TERM PEACE OF MIND
Investing for a secure future is a sure way to achieve financial wellness. While investing can be considered more beneficial for long-term security, it has added benefits when you take advantage of compound interest, earning you interest at a higher rate than just saving your money. Through investing, you can build a comfortable nest egg for your retirement and your loved ones, saving you the stress of working well past your retirement age, or worrying about where you’ll source your income.
Tip: Start with something low-maintenance, such as an ETF. Try Satrix (a Sanlam product), or learn a thing or two from Miranda Dlamini.
2. PAY OFF YOUR DEBT SOONER RATHER THAN LATER
If the past year has taught us anything, it’s the fact that interest rates have a dire knock-on effect on all areas of our lives as they rise. Paying your debts as quickly as possible can help you free up cash for times you need it the most, or invest and let your money grow elsewhere.
Tip: Try the snowball method which encourages you to pay off the smallest debts first and as soon as possible and then ultimately roll over that debt instalment towards other debts until you pay them all off. Alternatively, use the avalanche approach where you can pay the minimum amount requested by your lenders monthly, then take any extra funds to pay credit or loans with the highest interest rates off first.
3. EMPOWER YOURSELF
Knowledge is power, and staying on top of your finances is no different. We understand that tracking your money and spending may be energy-sapping and feel like a lot of admin, though. Luckily, there are a few nifty budgeting tools to make the process simpler. Empower yourself with the right tool and minimise your anxiety.
Tip: Find the right budgeting methods, tools and apps that work for you or use your banking app to group your expenses and income together so you don’t have to.
4. FOLLOW THE RIGHT EXPERTS
Financial advice can be the key to your financial success, if it’s the right kind. That’s why it’s important to listen to the right wealth experts, and not the “quick money experts” who claim quick success that’s often not sustainable.
Tip: Managing money is not easy, and having trusted people around you to help you keep moving forward will make you feel less alone and more empowered. Partner with a financial adviser to map out your financial journey and achieve your goals.
Learn more financial wellness tips to secure your financial wellness and that of your loved ones. For those times you need a financial boost or funds to create an income, apply for an RCS Personal Loan which is an accredited and responsible financial provider. Get a loan from as little as R2 500 with flexible payment terms for added peace of mind.
