5 Ways To Be Less Freaked Out About Your Finances

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Money talk is not necessarily an easy conversation to have. Many people can feel crippling anxiety about finances. There are ways to reduce stress. You need to have control over your finances so that your money doesn’t control you.

With that in mind, here are five ways you can become less anxious about your finances.

1. You are not alone.

If your finances are worrying you, you can take solace in the fact that you’re not the only one. Most people feel stressed about their finances, futures, or both.

In fact, according to a recent “Thriving Wallet” study by Thrive Global and Discover, 90 percent of Americans admit that money induces stress. Another CreditWise survey by Capital One, finds that, for 73 percent of people, finances are actually the number-one root of stress–even more so than politics (59 percent), work (49 percent) and family (46 percent). And, even if financial woes aren’t all-consuming, further research from the American Psychological Association, 72 percent of Americans report feeling stressed about money at least some of the time.

In other words, we’re all in it together.

2. Create a better budget.

Creating a budget is a sure-fire way to control your finances. You can do this by following the very simple 50/30/20 rule, for example.

The 50/30/20 rule divides your after-tax income into three categories:

  1. 50 percent for your needs (like your rent or mortgage payments, car insurance, health care, etc. )
  2. 30 percent for your wants (like those morning cups of coffee, that Spotify Premium subscription, travel plans, etc. )
  3. 20 percent for your savings and investments (like your investments, savings, IRA contributions, etc. )
  4. This rule states that your needs should consume 50% of your income. You can then divide the remainder of your after-tax income up to pay for your current lifestyle or to save for the future.

    It’s important to prioritize your needs so that you can afford the things that matter most. You can make more time for weekend getaways and dinner out by cutting back on subscription fees.

    3. Create a financial plan.

    Making a financial plan is crucial because it helps you to see your financial situation clearly. Deciding where you want to be in five or 10 years is the first step in understanding how exactly you can get there.

    The plan should be a list with your future goals, broken down into manageable milestones. It can be a great way to stay motivated by breaking down your larger goals into smaller milestones. Research shows that small victories are more powerful than big ones.

    4. Get involved in supportive communities.

    Money talk is taboo. Yet, people are clamouring to be connected with other people on similar journeys and who have been there financially. We are all human, and support is an essential human need. To meet this need, support groups are popping up on social media platforms. Join communities that offer safe spaces where you can discuss all things money management.

    Q.ai’s Discord channel makes a great place to start. Discord is an online community for anyone who wants to learn more on Q.ai and investing in general. This is the only place you can access Q.ai AI-powered investment portfolios including tickers and weekly performance update. The community members have access to an investment advice channel, a newsfeed that includes market commentary and product updates, as well as an investing advice channel.

    5. AI is the future of investing.

    We’ve said it before and we’ll repeat it again: Artificial intelligence is changing the way that investors invest. Your money will make more by investing than it would if it were in savings. After all, investments typically see average annual returns of 10 percent. The sooner you start, the faster your money will grow because of compounded interest over time and market upswings.

    AI empowers fintech customers to make better informed and more informed decisions through deep learning algorithms that calculate the numbers. Q.ai uses the power of AI to intelligently allocate and rebalance investments. This list doesn’t require you to do anything, but you don’t have the right to lose control of your finances that you have worked so hard for.

    Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. Subscribers can join an exclusive Slack group for a limited time to receive these ideas before the markets open.

Q.ai – Make Genius Money Moves Contributor
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