Financial Zen: How to get a financial peace of mind

The truth is: financial status is one of the most stressful things in life. If you want to live a stress-free life – stress-free, efficient work and living environment, get up early and get through the morning routine – we need to solve personal financial problems and find common practices that minimize the pressure on money.

First, identify the source of financial stress in your life. For many people, these pressures include fear of debt, late payment of bills, no financial safety nets, lack of control over personal finances, and quarrels caused by financial problems.

For each stressor, let’s deal with some simple solutions:

  • Leave debt. This is usually the first necessary step. But how do you do this? First, please monitor your personal impulse consumption to stop the blood loss problem. Use the debt snowball program to get out of debt. In addition, please refer to: “How do I save money”, “How to live without the moonlight family”, “How do I end my love with credit cards.” (Blue fonts can be clicked)

  • Pay off all bills as soon as possible. This is one of the easiest ways to eliminate the pressure on your bills. When you receive the electricity bill, write a check, put it in the envelope, and send it the next day. Or if you have an online bank account (should be opened), please go to the computer and log in to your online account to pay the electricity bill. In order to do this, you should have some buffer balance in your bank account so that when the bill appears, you will always have enough money to complete the payment.

  • Automate payment methods. I used to write an article about this approach… It is an excellent alternative to the previous one. Instead of paying when the bill arrives, you can set up automatic payment and automatic savings on the Internet so that when the salary is paid, those bills can be automatically paid and the savings (or investment) amount can be automatically transferred. Both of these practices are great.

  • Create a personal financial safety net. This is something you should do right away. First, if you are married or have any relatives, you should immediately purchase life insurance. Please do research and research to ensure that your insurance is suitable for your needs. Please don’t buy life insurance – that’s not the smartest way to invest. Second, please check the insurance that meets other personal needs, including car, landlord, tenant and other types of insurance. Third, make sure you have a will — if you are young, it may not seem necessary, but if you have any relatives, this is a must. Fourth, establish a contingency fund — please do this right away. I know that everyone will give this advice, but if you don’t even have a small contingency fund, you will never get a financial peace of mind. Please allow the contingency fund to grow to a salary of 3-6 months, or any amount that will make you feel safe.

  • Review your personal finances at least weekly. In order to gain a sense of control over your personal finances, you must monitor the actual situation. Make sure to check your personal balance spending at least once a week to make sure you don’t have a bad check or debt. Even if you automatically pay for the various bills, please make sure they are all paid. Spend 10-20 minutes a week, check your budget, expenses and income, and make sure everything is under control. If you have a life partner, please do this together.

  • Discuss money with your partner. Money can be a source of great stress in relationships. Please discuss money issues regularly with your partner in a non-emotional way. Although it sounds difficult to do, it is very important. In fact, this is crucial to the maintenance of your relationship. Both of you must reach an agreement, otherwise the two will eventually have a quarrel and a big crisis on financial issues. You need to discuss your financial dreams and goals, your spending patterns, as well as budget, income, savings, debt, financial security, bills, and more. If you have never done this before, it may take some time at the beginning and it feels very difficult. But please try to do this as a team, don’t blame each other for anything, don’t blame each other, try to stay positive and constructive. Over time, this thing will become easier and easier. Please spend at least 10-20 minutes a week, review the financial situation, review your personal goals, and ensure that everyone can face all issues together. This practice will bring about major changes in your relationship and stress levels.

Leo Babauta

2007.04.04

www.stevepavlinachina.com

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