By Cameron Huddleston
WWR Article Summary (tl;dr) So how do you prevent yourself from worrying about money? Scott Bishop, the director of financial planning at STA Wealth Management says one tip is to know where your money is going. He recommends using an app such as Mint, which lets you track all of your accounts and spending in one place and create a budget.
Are worries about money keeping you up at night? You’re not alone. Money is one of the top concerns of Americans, a recent GOBankingRates survey found.
“Everybody worries about financial decisions, indecisions or consequences,” said Scott Bishop, the director of financial planning at STA Wealth Management in Houston. Worrying won’t solve your money problems, though. In fact, it can lead to even more stress and mistakes, he said.
Fortunately, there are steps you can take to prevent your financial problems from overwhelming you. Here are eight ways to stop worrying about money and get your finances on track.
UNDERSTAND YOUR MONEY SITUATION
You can get a better understanding of your money situation by identifying what your assets, house, investments, savings, are and what your liabilities, or debts, are, said Michael F. Kay, a financial planner and president of Financial Life Focus, in Livingston, N.J. Once you know what you have and what you owe, you can identify what your biggest problem is and assess what needs to change. For most, it’s too little savings and too much debt, he said.
“Before you can stop worrying, you need to know where you stand financially,” Bishop said. “The best way to do that is to get a handle on or snapshot of your current situation.”
KNOW WHERE YOUR MONEY IS GOING
Once you know where you stand financially, you need to know how you got into that position. This means figuring out where your money goes each month, Kay said. First, identify your necessary expenses, mortgage or rent, utilities, transportation and anything else you must pay for each month. Then, look at your bank and credit card statements from the past month to see how much you’re spending on discretionary items, things you want but don’t need.