Financial insecurity and uncertainty about the future are two huge sources of stress that can wreak havoc on your health. While you may have already implemented cost-effective lifestyle changes, there might be more you can do to manage the health of your finances during these harsh economic times. Combat the sleepless nights and piles of bills with these 3 steps.
1. Trim the Fat and Cut the Excess
- Cut back on your bills by curbing the amount you spend on utilities. Limit the use of electricity, gas and water. Think about watching less TV, logging off your computer faster, and skipping the long showers. You could save hundreds of dollars by doing this alone. Go to www.billshrink.com for more tips on how to shrink your monthly bills.
- Consolidate your credit card bills. Keep an eye on your interest rate. Community banks and credit unions offer up to 20% lower rates and may allow you to transfer your balance for no extra free. Visit www.cuna.org to locate the credit union in your area.
2. Borrow From Your Future to Maintain Your Present
- It might be a scary thought to tap into your child’s college fund, but consider this an emergency-only option. Once you’re back on your feet, you can replenish this account.
- Leverage your home equity. It could be one of the greatest assets you have. If this a safe option for you, go to your home lender and ask for 10% of your home equity. This sum could help hold you over for months.
- Consider your retirement fund. If you apply for “hardship withdrawal,” you won’t have to pay the penalty for early withdrawal. Once your financial situation stabilizes, you’ll be able to start contributing to this fund again.
3. Adjust to Living Small
- Living large comes at a price – a hefty one. If you’ve already made lifestyle changes to get through these tough times, make them permanent once things improve. Take all the things you learned and package them into a new understanding of how to manage your money for the long haul.
- If you and your partner bring in a dual income, consider living on one only. Or, don’t budget at 100% of your combined income. Live as if you were making 1/3 less money and save the rest.
- Build up your emergency savings. An emergency fund should cover 8 months of living expenses and allow you to replenish your retirement fund.
In addition to these steps, try Dr. Oz’s unemployment stress-reduction tips:
- Adopt a regular routine. Make your days meaningful and productive. Get up at the same time every day. Get dressed. In addition to looking for new employment, take on an activity. Face the day as if you were getting ready to go to work.
- Get out! Once you’re up and ready, make sure to go out into the world. Avoid isolation. Get 1 hour of vitamin D by going outside. Stay social. Remember that community and friendships are a necessary support system.
- Exercise! Get your 10,000 steps or do 30 minutes of cardio on a daily basis.