1 in 3 Americans Is Losing Sleep Over Money. Here’s How to Break That Cycle

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Stressed about your finances? Read on for ways to improve your outlook. 

It’s natural to worry about money from time to time. You might get thrown for a loop when you find out that your car needs a $1,000 repair, or that your water heater is on its way out and you’ll soon be on the hook for a $2,500 replacement.

But there’s a difference between stressing about specific expenses or financial events and being generally worried about money regularly. And if you’re in the latter camp, it’s important to take steps to bust out of that cycle.

Now, one thing you should know is that if you’re plagued with financial concerns, you’re not alone. A good 36% of Americans say that financial uncertainty keeps them up at night at least monthly, according to a recent Northwestern Mutual study. But you can take these steps to feel better about your finances — and reduce your stress load.

1. Build an emergency fund

Hearing that your car needs a $1,000 repair is extremely stressful when you know that you don’t have that money sitting in a savings account. If you want to worry less about money, do your best to build up an emergency fund over time. That way, you’ll have cash reserves to tap for unexpected expenses.

If you look up “What’s an ideal emergency fund?” on the internet, you might come across advice that says you should aim for three months’ worth of living expenses in the bank. If you have $0 saved at present, the idea of socking away enough cash to pay for three months of bills might seem overwhelming.

So ignore that advice for now. It’s good advice, but if the idea of meeting such a large goal is too daunting, focus on what you can do in the near term. That might mean saving $200 for emergencies by the end of the year and then aiming for another $1,000 throughout 2024.

2. Pay off costly debt

Owe money on credit cards? That’s a stressful situation, because you’re probably aware that for every day you continue to carry a balance, you’re racking up costly interest.

Paying off your credit cards might improve your outlook. But where’s the money going to come from? That’s the tough part, right?

Well, one thing you can do is turn to the gig economy to drum up extra cash. There are many flexible side hustles you can pursue that could put more money in your pocket.

Find something that works for your schedule, whether it’s online data entry or driving for a ride-hailing service, and fit in as many hours as you reasonably can. From there, you can chip away at your debt until it’s gone for good.

3. Start saving money automatically

Maybe you already have a bit of an emergency fund and you aren’t in debt. Great! But that doesn’t mean your life is devoid of financial stress. It may be that you’re someone who worries every time you make an extra purchase — even if you can afford those purchases.

To steer clear of those negative feelings, set up an automatic transfer so you’re saving money off the bat every month. That monthly transfer could be $50, $100, or any amount you feel good about and can afford.

Let’s say you automate a $100 transfer into your savings every month. If you’re tempted to buy $80 concert tickets one month, you won’t have to worry about whether you can really afford them. That’s because you’ll know you’re already meeting your savings goals.

It’s pretty much impossible to never worry about money. But it’s not a good thing to be kept up at night due to financial concerns. So if that’s something you experience regularly, it’s time to break that cycle with these key moves.

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