We’ve all been there; stressed out about finance for one reason or another.  Financial stress can be created by unforeseen financial storms, but it’s often created by choices we’ve made.  Here are 3 tips to reduce financial stress.

Tip 1: Create a rainy day fund

Even the smallest financial setbacks can have a large impact on our daily finances.  A rainy day fund will help you survive the small financial storms and help you sleep better at night. Start small, adding a small amount each month to a savings account until you feel comfortable with the amount saved.

Tip 2: Review your insurance policies with a professional

Having a solid protection plan will help you withstand the catastrophic financial storms.  No one chooses to have bad luck, but you can choose to prepare for it.  Proper planning will help reduce the impact of large financial losses on your financial situation.  It’s important to understand your options and the associated costs of being properly insured, and the risks and associated costs of being uninsured.

Tip 3: Align your values with your money habits

Choice is what makes life enjoyable; it is also what adds stress to your life.  Financial stress is often created by making decisions based on how you feel instead of what you value.  For some, purchasing something new makes them feel good.  Often times these purchases are also what cause the most financial stress.  Financial decisions made based on emotion often come at the cost of the things you value.