Post-Covid has seen a lot of income earners worry about their source of income. In addition to this, other uncertainties that might be peculiar to one’s lifestyle or industry have caused a series of domino effects that has spiraled most people into a state of financial stress.
Financial stress is worrying or being anxious about money, bills, or debt. It can also be defined as the inability to fulfil financial obligations as a result of insufficient funds.
Causes of Financial Stress
Some of the causes of financial stress are:
Debt: Incurring debt can cause a person to continuously be anxious about their financial situation.
Insufficient earnings: Not earning enough to cover living expenses can lead a person to be constantly worried about their finances.
Negative economic activity: Adverse economic activities such as inflation and devaluation of the currency, contribute to negative feelings of stress and worry associated with money.
Black tax: Black tax refers to money income earners give to their extended family members for financial support. Some people fully support their families while others partially do. Regardless of whichever, black tax can make a sizeable dent in one’s pocket and consequently lead to financial stress, if not properly planned for.
Unforeseen expenses: These types of expenses can creep up on a person who has even planned for their money and can be a source of fear.
How Budgeting Can Help
Budgeting is having a plan for your money.
It involves having a plan for how you will spend, save or earn over some time. Budgeting is key to properly managing financial stress.
Budgeting helps you to:
Properly manage and track your money
With budgeting, one can estimate their monthly expenses, create a pocket budget for each expenditure and keep track of spending behaviours. Without a budget, all of these activities will remain unmonitored and you will continuously worry about why your money finishes so quickly. The Brassmoney app enables you to carry out these activities seamlessly. On the app, you can create several budgets and allocate funds accordingly, as well as receive insights on your spending pattern. Consider no longer having to worry about where your money is going because you can easily account for it in real-time.
Have an emergency fund for unexpected expenses
Unforeseen expenses can come up when you least expect them. To this effect, creating an emergency fund in your budget helps to tackle this issue. No longer will you have to worry about unplanned expenses. Keeping this budget funded monthly even in months where you do not encounter any unexpected expense helps you remain prepared for when they eventually arise.
Plan for black tax
For a lot of people, black tax is unavoidable. Creating a black tax pocket fund in your budget and allocating a percentage of your income monthly to this fund, helps you tackle this problem. Discipline is key, however, being able to say no when a request exceeds your budget is important to maintaining your financial health and preventing stress.
Gives you clarity
Proper budgeting helps you see which of your expenses is taking the bulk of your cash which in turn helps you manage your money better. Without the financial accountability that comes with budgeting, one might not have the full picture of their finances.
Conclusion
Financial stress is a significant stressor that can be tackled by budgeting properly. By properly allocating your money ahead of time, one can account for some of the causes of financial stress, plan for unforeseen expenses, and still maintain good financial health.
Brassmoney is committed to partnering with you for your continued financial health and with our services, you can be on track to maintaining a healthy financial lifestyle.
Visit your respective App Store or Play Store to download Brassmoney so you can start budgeting today!
