With the current cost-of-living crisis only set to escalate in the coming months, it’s important for you and your family to feel safe and secure in your homes. We understand, however, that this is easier said than done, so here are some ways through which you can improve your financial security and feel stable in this period of uncertainty.
Know where you stand
Being aware of where and when your money is going throughout the month is a great way to properly assess the financial position in which you find yourself. Knowing about your incomings and outgoings can show you areas in which you can save more money and others in which you’re doing well.
Finding ways to organise your finances can improve your sense of control and bring you some peace of mind.
Keep on top of your debts
Debt is a primary source of anxiety and stress for a lot of people, so knowing the ins and outs of what you owe – and the interest rate – is important. Don’t ignore payments or throw out bills; pay off as much as you can when you can.
It’s easy to panic but don’t let that debt accumulate! By staying on top of payments for any small loans or other type of loans and only borrowing what you need, you can work towards eliminating your debt and relieving some mental strain.
Have an emergency fund
No-one is a stranger to a surprise home or car repair or even unforeseen circumstances such as losing your job or illness. Having a financial safety net upon which you can fall back in times of crisis is a great way to provide greater security for you and make you feel in more control of your life.
Setting aside some money into an emergency fund each month can help to cover any unexpected payments or bills and protect your savings. There are many ways to start your own emergency savings and keep you out of a negative bank balance.
Ask for help
The cost-of-living crisis represents a financial hardship for many people across the UK but there’s no need to struggle alone. If you find yourself in distress or unable to handle your finances, you can turn to friends and family for some support and advice.
For more serious matters, many financial institutions provide both financial advice and guidance. Not only can this reduce the anxiety that you feel about your situation, but it puts you on the right track to improving it.
It can be hard to talk about money problems, but your mental health is just as important as your physical health.