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Financial stress is the worst stress that exists! The financial area is a source of daily concern for most parents who would really like to reach financial stability state with their husband, wife and children.

I do not mean people who live in poverty and who have difficulty paying the minimum wage: for clothing, house rent, food, etc.

I mean the majority of us who have enough money to live, but we need all the time. It’s up to you-or rather, to us-who I address in this article.

 

 

We have enough money to live, but we need all the time!

However, according to the study of the American Psychological Association, money continues to be the main cause of stress among Americans. Not surprisingly, if we think about taxes, indirect rates and all costs that increase steadily even though official inflation rates remain so low … (I will not abuse the figures, do not panic !)

In this article, I will discuss how parents can overcome financial stress and live better with the money we already have! To fully appreciate our family life.

 

 

 

How to overcome financial stress?

First of all, is it really possible to live without financial stress?

And, in addition, you learn quickly! That is to say, I am not talking about increasing your income thanks to a second job, although it could be an option.

I myself went through this process a few years ago, when I was a compulsive consumer. In fact, I systematically bought a little of everything without worrying about my needs and my priorities … until I got tired of it!

Thanks to the fact that I dedicated myself to work on myself and put into practice some simple strategies, of which I will write later, I became an intelligent buyer. How could I achieve it?

 

 

 

Manage your priority expenses

If you take a few minutes to reflect on your dreams and your goals in life, you can quickly become aware of your priorities. Surely he has realized that bad debts are the ones that cause the most financial stress!

Note: Bad debts are those that have made it possible to purchase non-durable consumer goods, such as restaurant meals, trips, clothes, etc.

To help you and also to motivate you to achieve Zen status in the financial area, I invite you to answer the following questions:

  • Do not worry, it will not take more than two minutes, nothing more!
  • What do you like most in life? (Write three activities that come to mind as fast as what you should pay this month approximately).

Do you dedicate enough time to these three activities? (If the answer is “NO” for each of the written activities, ask yourself the question “why?”)

 

 

Two effective strategies to reduce your financial stress

Here I present two strategies that have helped me a lot to move from impulsive buyer to smart consumer.

 

I guarantee you that in less than a month, if you put into practice these two strategies that I am sharing with you, you will achieve -as I do- a better financial life.

 

 

Strategy no 1:  Knowing what you do with the money!

First, do you know how much and how do you currently spend your money? Answering this question is simple and threatening at the same time, I know it!

Because if we know, we cannot pretend not to know why we lack money all the time. And then, fear comes, fear of hearing about budgets … But do not worry, I do not like budgets either.

You may say to me: “I have an idea of ​​my expenses … but that’s fine, because I do not need to know exactly what I spend …”

Hum … It’s what I said a few years ago, before I said to take back control of my financial life.

Could you tell me – without varying the true amount by more than 10% – how much do you spend monthly or annually on food products, restaurants and clothing?

These expenses are the so-called variable expenses. Their variable expenses are those that vary from one month to the next, according to their needs and tastes.

 

 

 

The 2nd strategy: Decide what you would like to do with your money?

That makes you wonder “How would I like to live?” Or “How would I like to spend my money?”

That may seem absurd, but to get anywhere, you need to know where you want to go. Turn on the car, check the fuel level, but it has no precise destination, where do you think it could go?

Something similar happens when we have not reflected enough on our objectives and priorities. When we spend, we often make decisions that seem valid to us, but often we do them without really reflecting on our priorities.

How could we do to align ourselves with our expenses, our priorities and our personal values?


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

There is a very famous old saying that says “if you lend money to a friend, you lose the money and the friend”. And they do not necessarily have to be high sums of money. Sometimes, a simple and small amount of money with its subsequent difficulty to return it, generates a discomfort in a certain way, and not necessarily on the part of the “borrower”.

 

 

  1. Do not be afraid to say NO

You have absolutely no obligation to give your money to someone, and more being a hard earned money or saved on sacrifices. Often, you are making a dangerous investment of high risk and zero reward.

Follow your intuition, and if you do not feel comfortable lending the money to that particular person, just say NO. If your refusal to lend the friend money causes a problem, keep in mind that the most likely thing is that you would end up like this, even without you lending the money. Analyze very well who you are thinking of helping.

 

 

  1. Do not give in to emotional blackmail

People who need money will sometimes expose you to a situation much worse than they actually have, with tears included. When you see a person with that level of drama, think that when you get to that situation, it is more likely that your situation will get worse, and not better, so the probability of your money back in the short-medium the term will be quite low.

 

 

  1. Do not use your own savings

Provide only an amount that you can afford to lose in case the money is not returned, as there is a likelihood that it will be.

If you have a savings or investment product, do not take the money out of there, nor use the money destined for your emergency fund , because that money is precisely for that: for emergencies (yours).

 

 

  1. If you lend the money, do not throw anything in the face

If the money goes accompanied by a lecture in which you are going to criticize the financial abilities of that person or the bad man of business that is, the bad head that that person has, etc. … do not lend it, because that person will take the money, but he will not be really grateful to you, but humiliated by you.

And if one day you return the money, you’re feeling about you will be recorded in your head. Of course you can give advice in a courteous manner.

 

 

  1. Write a contract

Most people forget that the fact of lending money is almost never merely friendship, but a financial transaction with nefarious compliance statistics. Therefore, try to do it professionally.

Do it in a friendly way, but with a written contract: we are going to do a paper where you have given us “so-and-so” $1,000, and that you agree to return it on the agreed date. Have it in writing and that each one has a copy, at least remember that one owes money and the other owes money.

And if the thing is distorted, at least you have a document that would serve you in a legal proceeding. However, if it serves you as a reverse motivation, if that person loses his job and runs out of income, no judge will garnish anything to pay you.

That person should only tell the judge that he recognizes the debt and that he intends to repay it, but now he cannot.

 

 

  1. Put yourself in the worst possible scenario

In most cases, when we lend money to friends or family, not everything always ends as we had planned, so you should ask yourself some questions:

Will I be able to pass without being affected if I am not returned that money?

What conflicts would it bring me if they do not pay me the money?

Apart from the money, what else would I lose if I stopped seeing that person when I was uncomfortable for owing me money? And sometimes, not only do we lose our friend, but everything that accompanies that friend.

 

 

  1. Have insurance

This part may sound harsh, but if it is a friend we want to help, but something tells us that we cannot trust him too much, sometimes, some people lend the money condition to do a pre-contract where that person puts something in our name (a car, a motorbike …)

It may seem an extortionary behavior, but it is a way of having the right, but not the obligation, that, in case that person does not comply and makes us lose our money, at least we can recover all or part of the money with another active.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Many self-employed workers and entrepreneurs are now incorporating family members who, due to current circumstances, do not have access to the labor market. What at first might seem like a good idea, can become a serious problem because it is difficult to separate family and work; not to mention that when there is a lot of trust between people who work together, decisions can be made in less professional and more emotional ways. That’s why we recommend that you take into account the following tips when managing a company of this type:

 

  • When selecting or promoting someone close to the family business, it is better to do so with the help of an external technician who provides independence as well as objectivity. Thus the choice will be more in line with the professional needs of the family business, which will avoid problems and duplication of personnel in the future.
  • In the cases in which a couple establishes a family business, one must be careful because a possible separation may also end with the business, so it is advisable to anticipate possible disputes through a family protocol or an agreement. The protocol of a family business addresses not only what to do in cases of divorce, but also what to do in succession processes or incorporation of family members to the company, being able to complement the protocol with marriage agreements that establish what happens with the matrimonial property in cases of divorce.
  • For cases of rivalries between siblings within the family business, we must act with caution because it is one of the most common causes of disappearance in the family business, so it is best to prevent bad health competition clearly delimiting the functions and responsibilities of every brother in the family business. Sometimes the eagerness to lead the family business will force to create several branches. Thus a climate of constructive complementary will be given, instead of one of destructive competition. Even so, it is normal that in all family business there are conflicts between brothers. That is why it is best to establish a code of conduct that sets the procedures for resolving differences.
  • Firefighting is always a difficult act, but in the family business it is much more difficult, because after the process there may be hatred and resentment. Sometimes the economic situation forces the business to have to make that type of decisions, although in rare occasions it is due to the abuse of trust within the family business. Relying on the trust and the emotional bond of the family is the key to face the process with the maximum guarantees but that bitter swallow in the family business should not be delegated to external managers, it should be the responsibility of the family. In the event that the dismissal is motivated by conflicting relatives, the opportunity must be given to correct their behavior or to be relocated to another post where it may be more useful.
Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.
Family annual expenses - Complete Controller

As a parent, it’s essential to cater to the needs and necessities of your family. In a household, everything needs attention. From groceries to mortgages, everything gets planned through budgeting and small financial practices. Unlike monthly budgets, there are many considerations to undertake when planning yearly expenses. Annual expenses can be difficult, but, if expertly planned, can be managed with ease. Here are some anticipated costs that you could incur in the upcoming year as a parent. Check out America's Best Bookkeepers

Education

As a parent, the future belongs to your children. Their education is priority number one. If you have kids going to college next year and haven’t already planned, it’s better to start right now! Education can be expensive, and obtaining a higher education is undoubtedly costly. The best way to confront substantial expenses is by foreseeing them and preparing well before the day arrives. It is imperative to keep in mind the annual expenses of the future and education of your kids.

Health

Your family’s health is of utmost importance, even coming before their education. If you have someone who needs regular and uninterrupted sequential medical treatment, it gets pricey quickly. Health insurance plays a significant role in relieving some of the financial pressures. Still, even then, it is getting more and more costly. You must always plan for the medical needs of family members and calculate the costs per those needs. Health and medical bills go hand in hand, preparing for any expenditures borne for such a necessity. Check out America's Best Bookkeepers

Vacations

Of course, vacations are a luxury.  However, if you plan for them well beforehand, you can make it happen.  This annual expense is something that everyone anticipates. Vacations are a great way to connect as a family again, especially when it seems that everyone is always on the go. Your kids are busy with school. You may get absorbed in your job. Taking a vacation helps you all come together and enables you to function better as a family.  Plan ahead, set your goals, and allow your family this luxury.

Seasonal Expenses

Different seasons bring with joy, expectation, and, yes, a price! For instance, the winter season brings about the severe cold and, thus, clothing and apparel precautions are necessary. The cooling system shuts down, and the heats turn on. If you happen to live in the south, the opposite could be right for you.  During the hot summer months, your electricity can cost an arm and a leg. Aside from that, there are birthday parties to plan, holidays to celebrate, and so on.  Budget beforehand and start saving money now so that you can enjoy these special times a bit more.

Preparedness for Unemployment

Under the circumstances of losing employment, costs, and expenditures can create a lot of mental and psychological turmoil. Foreseeing this unfortunate predicament is smart and intelligent because the modern corporate scene has already witnessed financial cut downs and layoffs. Being a realist and preparing for such harsh situations will be a blessing in actual job loss. Unemployment itself is a cause of mental anguish. It can lead to severe health problems in the shape of anxiety and depression.  Better to plan for the worst and hope for the best so that your family is ready for anything. Check out America's Best Bookkeepers

Important Events

Events such as weddings and celebrations are essential as a family. Some weddings get planned well ahead of time, so one has enough time to prepare accordingly. However, there are events like funerals that can catch you off guard. Always keep this in mind so that any sudden unpleasant news can get handled with poise and confidence. Also, you should save money at the end of each month to contribute to the annual expenses that are elemental to the welfare of the family every year.

Conclusion

Planning your annual expenses is to align yourself with enduring and striving to make sure nothing goes wrong for the sake of your family. The best means to avoid any tough time is by preparing well for any such incidents ever before they occur. By keeping track of your expenditures for the upcoming year, many plans and strategies are implemented to ensure a pleasant and beneficial life.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers