How to avoid money stress and worrying about debts

If you have trouble with money issues it can cause some serious stress. For example if you don't have enough money to pay for your monthly expenses, or if you are in debt. I for one know that my debt is troubling me, and I am working very hard at the moment to make ends meet every month. So how do you deal with this kind of money stress?


I find it very helpful to make a very clear list of my debts, and of incoming and outgoing money. So go sit down and have a good look at your finances. You might think this is scary, as it can be very confronting. But it actually eases the stress to know where you stand, and if you make a plan for the future.

Make an overview of your debts
Look up all your different debts and loans, and write the amounts down. Also write down monthly payments for each debt, and the interest rates. Now see if you can make the monthly payments each month. And if you could maybe send some extra money to pay off some of the debts. And if you have any extra money, decide which debt you want to pay off first. Most people try to pay off the loan with the highest interest rate first. But you could also start with the smallest debt, so you slowly decrease the number of debts you have. I want to start with the smallest debt I have first. Because it is the most manageable to pay off soon, and because it is a debt to my brother, so there is a personal factor to it as well.

Make a list of your monthly expenses and the money that comes in
This is a great way to see how much you actually spend on a monthly basis and whether you are spending more than you are earning or not. I like to write all this down, so I can see where my money goes, and where I could possibly save some pennies. This way you keep an accurate overview of how much money you could save every month, or how much you overspend.

Now take action
Now that you have a clear overview of your monthly budget and expenses, and of all your debts, use this to ease the stress. You now have a clear overview, and know exactly what you have to pay every month. For me this helps me set goals, and keeps me focused. And because I know exactly where my finances stand I worry less. Sure, I'm still very concerned about my high level of debts, but now that I have structured it, I know what to expect every month, and how to deal with it. So set your own personal goals. Like where to start paying off, whether you will only pay the monthly fees, or if you will throw all the money you have at your debts. Or where you could save some money in your monthly expenses.