Tips for Reducing Financial Stress

tips for reducing financial stress

If we are honest with ourselves sometimes our financial stress is caused by our expectations not being met. We want things to go one way with our finances and they go the other. Below are some tips for reducing financial stress in your life.

Losing a job, the inability to find full-time work, paying bills on time, and not being able to deal with the increasing costs of living can be disappointing.

When this happens, when our financial reality does not line up with our expectations, we can sometimes become stressed. Try the following tips to help you reduce your financial stress.

Set SMART Financial Goals to Reduce Financial Stress

Goals provide course of action. And financial goals provide direction for your financial matters. They should determine how you spend your time and your money. When setting goals, decide what you want, where you want to be, and what you want your money to do. Further, when you set goals, set goals that are SMART (specific, measurable, achievable, realistic, and have a time constraint).

The best goals are the ones that cause you to “stretch” as you do your best to reach them.

Make Your Time and Money a Priority

Use the “80-20 Rule” originated by Italian economist Vilfredo Pareto. The 80-20 rule says that “80 percent of the reward comes from 20 percent of the effort.” The key to prioritizing is to identify the valuable 20 percent.

Once identified, prioritize your time to work on the items with the greatest reward. If you value managing money well, prioritize the time it takes to manage it well. Knowing where you stand with your finances will help you reduce feelings of stress.

Take Some of the Stress Off and Be Flexible wIth Your Spending

According to Peter Drucker, a management consultant, author, educator, and the described father of modern management, “Doing the right thing is more important than doing things right.” Doing the right thing is effectiveness; doing things right is efficiency.

Be flexible when working on your money, focus first on the urgent, effective task, then concentrate on the important, efficient task.

Reduce Financial Stress by Planning To Spend Your Money

Using time to think and plan is using time wisely. Some would say that if you fail to take time for planning, you are, in effect, planning to fail. Additionally, be consistent with that time. If Monday after work is your money management time, then work your money Mondays after work.

As I have written before, managing money is a job, it takes time, so plan accordingly.

The tips for reducing financial stress above can help you reduce money stress in your life. Be careful with stress as it can cause mental, emotional, and physical health issues. How do you manage financial stress? I would love to hear from you.

Reaching Financial Goals in 2022

Did you know that only 5% of the population has clearly defined written goals?  According to a recent study, people who write their goals are more successful at achieving them, whereas those who did not write goals down were only moderately successful.  The value of writing down goals, cannot be understated.   

Will you be reaching for financial goals in 2022?  As the end of the year approaches, lots of people are talking about how to reach goals.  Goals are good as they provide direction and a path to follow to achieve an objective.  

What are Goals

According to, goals are the result or achievement toward which effort is directed; aim; end.  Short-term goals will activate soon; a day, week, possibly a few months.  Long-term goals are achieved over a longer period; semester, one year, first quarter, five years.   

Financial goals help you move towards your objectives with money.  For example, if your objective is to save up enough money for a mini emergency fund ($1000), your goal might be to trim some expenses and save a certain dollar amount weekly or monthly until you reach the $1000 goal. 

Reaching Financial Golas in 2022: Four Ways Goals help you Meet your Objectives

As you are developing financial goals for next year, keep in mind that goals affect your outcome.  They help you meet your end objective in four ways.

  1. Goals give you a choice in the matter.  With a goal, now you must choose whether I go out to eat for lunch or bring my lunch to work.  Goals focus your attention towards your objective and away from distractions.
  2. When you have goals in place to meet objectives, you become energized about meeting your goals and you increase the effort toward them.  A goal will induce greater effort toward saving money than no goal at all.  No one wants to fail at a goal.        
  3. When you have goals your ability to work through setbacks increases.  So, because of an unexpected expense, you are not able to save as much as you wanted to this month.  Goals will help you to work through this set back, keep pursuing the goal, and keep you on track to start saving, again in the next month.
  4. Goals have a cognitive quality about them.  They can lead to individuals developing and changing the behavior that they want to change.  The goal of saving money will help you think about saving money and help develop a saving behavior. 


 When you set your goals use the S.M.A.R.T. test.  S.M.A.R.T. goals are:

  1. Specific – detailed and focused and specify the result.

Example:  I want to save $1000 so I can have a beginner emergency fund, the final objective.

  • Measurable – quantifiable. There must be a method of comparison that indicates when the goal is reached.

Example:  I want to save $100 per month to reach my goal of $1000 saved.    

  • Action-Oriented – tells what is to be done to reach the goal.  Action Verb tells the type of activity performed.  You want to keep the goal in front of you.  Write the goal down and keep a copy in your purse or wallet.  Put a copy of your goal on the mirror in your bathroom; keep it in front of you as a reminder.    

Example:  save 100 dollars per month until I reach $1000. 

  • Realistic – practical, achievable, and possible.  Goals must motivate individuals to improve and reach attainable ends (not too easy or too hard).

Example:   I plan to save $20 per week. 

  • Time constrained – scheduled or regulated by time.

Example:  Save $1000 by the end of the year. 

When your goals meet the S.M.A.R.T. test, they will be better goals and more attainable.

Reaching Financial Goals in 2022: Did You Know

Did you know that only 5% of the population has clearly defined written goals? According to a recent study, people who write their goals are more successful at achieving them, whereas those who did not write goals down were only moderately successful.  The value of writing down goals, cannot be understated.   

You can begin reaching financial goals in 2022 by setting objectives for what you want to achieve with your finances, and then develop short-term and long-term goals. Celebrate the achievement of each goal, and by all means, stay focused.  I am a financial coach and would love to help you set some SMART financial goals.  Contact me if you are ready to be coached.