Money and Mental Health: How to Manage Your Finances To Avoid Anxiety

Money is often associated with happiness, which is true to some extent. This makes people suffer social status anxiety & stress. Having control over your finances sustains discipline & boosts individual confidence. Otherwise, it can lead to long-term stress & impact physical health as well. Here are ten ways to manage your finances for a healthy emotional well-being:

1. Track Your Expenses

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Tracking expenses can help you stay within budget without being broke at a month’s last weekend. You can find many methods online, such as the 50-30-20 rule. It says Spend 50% of your income on needs, 30% on wants, and save 20% of it. This way, you’ll stay emotionally satisfied & happy.

2. Don’t Be Frugal

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People often overspend a lot & when their budget gets disturbed, they tend to reduce their expenses on actual needs. It is important to differentiate b/w your needs & wants. Don’t be a penny-pincher. Rather, assess your needs/wants & make a budget accordingly. It is achievable by making sustainable financial goals & reviewing your spending.

3. Save Emergency Fund

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Save 20% of your income for an emergency fund to avoid any financial crisis in the future. This can help save you from taking a high-interest debt in an emergency. Meanwhile, you can invest this capital in a passive income-generating asset such as real estate, turnover potential startup, or Stock market. Set a monthly goal to sync progress aligned with your financial interests.

4. Follow Changing Market Trends

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Keep a strong sight on changing market trends. Understand how geopolitical events can mold an average citizen’s life in a country. Learn terms like Inflation, GDP, Currency Exchange rates, Supply and demand, Taxation & purchasing power, etc. Following the international economy will assist you in making better financial decision-making.

5. Expand Income Streams

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Diversify your income streams, explore your skill set, and see what you can do. For instance, start a job, Invest in Stocks, Become an Influencer, Endorse Brands with collaborations, Farming or an E-commerce Business, etc. You can choose any niche that appeals to you, maximize your income & don’t rely on only one source of income.

6. Review Financial Goals

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Set financial goals for yourself to achieve what you aspire to. Review your goals from time to time to analyze your progress graph. This will help you to stay on track & motivated to go one step further every time. It is essential to evaluate progress in order to change strategy in fast-paced, changing markets. 

7. Invest in a Skill

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Learn any skill part-time, and think of any demanding skill that can help you stay ahead of most people. It can be a hard or soft skill, i.e., Freelance graphic designing or Customer Support Officer (Communication). Invest your time, be patient & work hard; you’ll eventually make it. 

8. Passive Income

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Passive income is the process of earning without putting in any effort. This can mean renting out a house, selling digital products, creating an app, affiliate marketing, selling stock photos online, Creating a YouTube channel investing in stocks, etc. You can also choose any other field. The idea behind passive income is to generate wealth without being dependent on one income source.

9. Books

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People need to gain awareness about financial literacy because they are barely taught it at home or school. It is often neglected as it’s not a significant subject. Read & explore books like Think & Grow Rich, Rich Dad Poor Dad & Your Money, or Your Life to understand how the financial market operates. It is found that reading books opens you to new knowledge.

10. Government Schemes & Campaigns

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Governments often offer different schemes & campaigns under certain conditions to promote the financial well-being of their citizens. These campaigns can include Study loans (with low interest), Subsidized solar panels installation & funding to start a business.

“Normal For Boomers In The 80s And Taboo Today” 10 Unacceptable Things Boomers Did That Would Never Happen Now

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The society in which you live today has some specific norms. If you compare it to the Boomers' generation, you'll realize that you can't do everything that they did in their time. There are many things baby boomers enjoyed as a part of their childhood.

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Gen Z or Gen Alpha can't even imagine doing those things, as it is way unacceptable in this era. Here are a few things Baby Boomers got away with but is a common thing today:

“The South Isn’t Friendly” 12 Dangerous U.S. Cities You May Want To Move To Before Visiting, Don’t Make That Mistake

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Being a well-developed and reputed kingdom, the United States tends to attract many people to visit or migrate. This kingdom has many beautiful states and cities. Their charm attracts people all around the World. But along with these modernized and developed cities, some cities are notorious for their insecure environment. Living or moving to this city may indulge you in difficulties.

“She Supports Donald Trump?” 10 Surprising Stars Who Support The Former President

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There are many stars who support the former president that will surprise you.

“Please, God, Don’t Order That” 10 Menu Items Fast Food Workers Dread Preparing

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Fast food workers encounter a wide variety of customer requests and menu items every day, but there are certain orders that they simply dread making. These items can be particularly challenging or time-consuming to prepare, causing frustration among the employees.

“Thrilling From The First Episode” 10 TV Shows That Will Kill Boredom

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A pilot episode can make or break a series. Here are 10 iconic pilot episodes.

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