How to manage your money worries this Stress Awareness Month

A recent study of 4000 UK adults, from the saving and investing app Moneybox, found that nearly half (47%) have some financial regrets, many of which have resulted in people feeling stressed about their current financial situation.

 
The most common financial regrets that people have are:
 

1. Not prioritising saving more when younger;
2. Not starting to save for a comfortable retirement earlier in life;
3. Not educating themselves more on financial matters;
4. Not taking time to plan for their future finances and only focusing on short-term needs and wants;
5. Not making or sticking to a budget.

 
28% revealed that stretched finances have caused them stress and 27% say this financial stress has already negatively affected their mental health. 14% say their physical well-being has been affected.

The research also uncovered that nearly two-thirds (64%) of adults believe they have missed out on financial opportunities because of a lack of financial knowledge and/ or confidence.

Interestingly, regardless of income, those with the highest levels of financial confidence were consistently found to dedicate much more time to their finances overall, which in turn has had a positive impact on their financial wellbeing.
 
Brian Byrnes, Head of Personal Finance at Moneybox, comments: “At one time or another, we have all endured periods when we have been under financial pressure, and when times are tough it can feel overwhelming. When managing money concerns, it is important to realise that you are not alone in your worries and that there is more support out there than you may realise. While it may be tempting to try and protect yourself by delaying addressing financial worries, you will be surprised with how quickly you can start to feel better about your finances with some small positive steps.

“If your financial confidence has been knocked, taking time to explore the options you have available to you, and making a step by step plan for the future will give you back a sense of control. We all have financial regrets in life, things we wish we had done differently, and opportunities we have missed but taking small consistent steps with our finances through the good times, and the bad, is the single most important thing you can do to boost your financial confidence and improve your financial situation in the long run.”
 
“Below are five tips for anyone who would like to take greater control of their finances to help them manage money worries and financial stress.”
 

1. Set aside at least thirty minutes each week to work on your personal finances. Sorting out all aspects of our finances takes time and feels overwhelming but over the course of a year, thirty minutes a week would result in twenty-six hours dedicated to improving your financial situation and reducing financial stress.
2. Research what help might be available for you to hit your financial goals. This might be speaking with debt advice helplines like Citizens Advice, learning if there are benefits you are entitled to but are not claiming, or speaking with any lenders and explaining your situation so they can offer realistic timescales for you to repay any debts.
3. Map your outgoings and see where your income is actually going each month. Make a monthly budget that is reviewed regularly. If you find that your spending patterns have changed or your disposable income has increased or decreased, make sure you understand why this might be.
4. Create a plan to increase your income if possible. Often when budgeting we think only about reducing expenditure and not the other side of the equation. You could consider upskilling yourself and putting yourself in the best position for a promotion and raise at work or utilising your skills to generate income from a side hustle.
5. Be kind to yourself and acknowledge that progress takes time. As with any goal, learning how to improve your personal finances requires discipline and the occasional reset. There will always be unforeseen events that can take us off course but keeping the end goal in mind is the best way to ensure you’re always moving in the right direction.