U.S. Money Reserve Discusses How to Reduce Financial Stress
Jul 27, 2021
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Personal finance can be a stressful matter causing worry and uncertainty, but this need not be the case. With intentionality and well-defined objectives, many people can reduce the stress that comes with getting their personal finances in order. In turn, they can realize increased benefits by aligning their financial decisions with clear goals.
Each individual’s financial situation is unique to their personal circumstances and needs. To help guide discussions of personal finance, U.S. Money Reserve recently shared considerations for working toward financial goals while minimizing stressors.
Honest Analysis and Accurate Preparation
To help control your finances, you can start by taking a candid look at your current financial situation. This can include closely examining bank statements to determine existing cash flow and outline the scope of recurring expenses. This process can also help you understand your existing savings habits and funds, which can be helpful information as you look to increase your savings moving forward.
Preparation can also include an honest examination of exactly how you spend your money. This will likely include assessing which expenses are essential and which may be indulgent purchases. This information becomes useful when you start to create a budget and decide on the value of short-term spending compared to longer-term savings and portfolio building.
To be clear, this does not require that you eliminate all luxuries from your life. Instead, this examination of personal expenses creates an awareness of your spending habits that can lead to expenditures and savings becoming more intentional. This analysis also gives you hard figures to work from when creating a budget and financial plan. Knowing what you have to work with can eliminate stress stemming from uncertainty or unrealistic expectations.
Empowered Budgeting
Identifying accessible funds and anticipated expenses can pave the way for creating a realistic budget. Rather than viewing a budget as restrictive, consider taking a positive perspective. You are now proactively choosing what to spend your money on and how (and how much) you want your capital to be available in the future.
Budgets can provide more freedom than you might imagine. When you plan your spending and saving based on hard numbers and actual goals, you gain the flexibility to spend money responsibly. This can include setting aside an amount for discretionary purchases without sacrificing your long-term financial goals. A byproduct of this practice may be the elimination of stress or regret that can linger when agonizing over a purchasing decision.
Expect the Unexpected
Another way to help combat potential financial stress may be the creation of an emergency fund. By saving a set amount of money, you will have that reserve to fall back on during difficult times. These situations are often stressful, and knowing you have the means to navigate unexpected expenses or a temporary reduction in income can provide peace of mind. Recommendations for how much you should save can vary, but generally hover between one to six months of living expenses.
U.S. Money Reserve notes that without savings specifically set aside for the unexpected, you may be left tapping into funds budgeted for other expenses. This can leave you in a difficult and stressful situation. Left without reserve savings, some even turn to high–interest rate credit cards or other secured debt options that can negatively impact overall finances. And while an emergency fund cannot help you avoid unforeseen car repairs or medical expenses, it can ease the stress and long-term financial impact of the issue at hand.
Plan for Retirement
With your current spending, savings, and reserves in order, you can focus on ways to set your future self at ease. One way to do this is by creating a retirement fund. Planning now for future financial security can place a more tangible time frame on the years of work required to support yourself and your family.
Using hard numbers and budgeting, you may be surprised by how much money you’ll need to retire comfortably. But this knowledge may lower overall stress, as clear goals and figures take the guesswork out of planning for a comfortable retirement.
There are many options available for setting aside the proper capital and assets for your retirement fund. To reduce overall risk, many experts suggest diversifying your portfolio between different assets and asset classes. Alternative assets such as precious metals may also be an option because they help diversify a portfolio beyond paper-based assets such as cash and stocks. Thus, when saving for retirement, one option is a precious metals IRA, which can provide tax benefits in addition to the typical benefits of holding precious metals like gold and silver. A precious metals IRA can serve as an efficient way to build retirement savings and may ultimately reduce the stress associated with saving, as you are the one in total control of your asset mix.
About U.S. Money Reserve, America’s Gold Authority®
U.S. Money Reserve is one of the nation’s largest private distributors of government-issued gold, silver, platinum, and palladium products.
Founded in 2001, U.S. Money Reserve has grown into one of the world’s largest private distributors of U.S. and foreign government–issued gold, silver, platinum, and palladium legal-tender products. Hundreds of thousands of clients across the country rely on U.S. Money Reserve to diversify their assets with physical precious metals, primarily in the form of legal-tender gold and silver coins.
U.S. Money Reserve’s uniquely trained team includes coin research and numismatic professionals equipped with the market knowledge to find products for precious metals buyers at every level. U.S. Money Reserve goes above the industry standard to provide superior customer service, with the goal of establishing a long-term relationship with each and every one of its customers. U.S. Money Reserve is based in Austin, Texas. Like them on Facebook, connect on LinkedIn, and follow on Twitter.
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