5 Ways A Budget Can Help Reduce Stress

Other than planning for your future and building wealth, did you know that a budget can also affect your health? If you’re feeling stressed when it comes to money, you’re not alone. In fact, money is a top contributor to stress according to a recent survey. Here are some ways a budget can get your stress level under control. 

Feeling in control. 

On any given day would you choose chaos or control? Although some people thrive in chaos, most people would choose control. There’s something about the human psyche that craves predictability and less of the unknown. Ironically, most people do not have a budget. A budget is one of the easiest ways to gain more control in your life. What better way to take back control than with your money? 

Less money clutter. 

Researchers have begun to uncover the relationship between visual clutter and cortisol levels (cortisol is what causes stress). A recent study demonstrates that there is a relationship for some people. If you’re someone who likes to have a clean, organized house, chances are you don’t like to feel cluttered in other areas of your life. Believe it or not, mental clutter exists too. This happens when your thoughts aren’t organized or you have too many outstanding to-dos piling up in your headspace. 

Having an organized budget (and maintaining it) is one less thing to clutter your mind. A budget should definitely be part of a clutter-free and stress-free lifestyle.

Having more fun. 

One myth about personal budgets is that it restricts your spending. It actually does the opposite if you do it right. Your entertainment budget, for example, is yours to decide. If you have $100 to designate monthly for entertainment, that’s $100 a month you can spend a month on having fun. Plus, it’s freeing to spend that money because you decided that those hundred dollars are for doing something fun. How great is that?! 

Imagine if you had a busy month, so you didn’t spend your entertainment budget that month. You could roll it over one or two months to save a larger sum for something really special. You could have a fun staycation with friends and have FUN while sticking to your budget. No stress here. 

Less guilt.

If you feel guilty every time you go to Starbucks, it’s probably time for a budget. Feeling guilty can definitely make you feel stressed. Having a budget can help with that. Eliminating that guilt is crucial to helping you have a better relationship with money. Part of getting rid of that guilt with money is holding yourself accountable for your spending habits. A budget is a great way to do that. 

Have you looked at your credit card statements lately? That’s a great place to start. Visually seeing your balance go up and down (and where you spent the most) will open your eyes to where you need to make changes. As you start to form new habits, that guilt will slowly go away. 

No more money fights. 

Money is a topic that many couples fight about. Unfortunately, it’s not uncommon for one person to want to save their money and the other to want to spend more. Couples that fight about money are likely carrying unnecessary stress. Though it can feel like a chore, doing a budget together is one way couples can meet in the middle when it comes to money. 

Who wouldn’t want to eliminate fighting from their relationship? Imagine having a playbook if a fight did start to simmer. A budget can be the playbook you turn to when you start to argue about where you’re spending your money. If you’re married, it’s a great idea to have a budget together in order to keep those money fights from happening.