Let’s Talk about Financial Stress

Key Takeaways

• 1. Financial stress can impact anyone at any time.
• 2. Improving financial literacy and adopting good financial habits can help you achieve financial wellness.
• 3. Identifying the source of your financial stress enables you to put a plan in place to address the symptoms.

When you are comfortable with your personal finances, feel on track to reach your goals, are prepared for the unexpected and working toward the things that you care about, these are all signs of a state of financial wellness. This calm, powerful state-of-being may be achieved through adopting good financial habits and improving your financial literacy.

However, situations that cause us to feel anxiety or worry about our finances – such as feeling concerned about the amount of debt you have – may impact your financial wellbeing. They may even lead us to feel financial stress.

What is financial stress?

Financial stress refers to the overwhelming sense of anxiety and strain that some individuals experience when faced with financial challenges and difficulties. It arises from factors such as mounting debts, insufficient savings, job loss, or unexpected expenses. If you find yourself regularly thinking about your financial position, or if you are experiencing negative thoughts about your financial future, you may be under financial stress.

Prolonged levels of financial stress may burden one's overall well-being and mental health, making it essential to address and find effective coping mechanisms.

Tips to manage financial stress

When you feel financially stressed, look to reduce your immediate symptoms. First, determine what is causing you stress. Is it a short-term concern, such as whether you have the funds to cover your rent payment this month, or is it a long-term concern, such as having sufficient savings to be able to retire comfortably? Understanding the source of your stress enables you to build a plan to address your concerns.

Take control of your expenses

If your stress is due to immediate concerns about paying bills or meeting expenses, you may find that a good first step is tracking your income and expenditure. Knowing where your money goes helps you identify places for savings. Citi’s Mobile^® App tracks your activities to help identify places where you can cut back and where your habits could be improved.

Another way to take control of your expenses is to determine how important and urgent each one is, then rank it. Items that are both urgent and important become financial needs and the top priorities, and those that are neither important nor urgent can be deferred.

Once your priorities are determined, you can set a plan to manage them.

Other ways to address immediate financial concerns include:

• Creating a list of your expenses and putting the due dates on your calendar.
• Setting up automatic payment for regular bills. For example, Citi PayAll makes it convenient so you never miss a payment, reducing the mental load of trying to remember multiple deadlines.

After you know your expenses, you can set up a cushion for the unexpected, then start dreaming—and planning—your financial future.

Prepare for the unexpected

If your financial stress is due to worries about how to manage if you suddenly lose your income or receive an unexpected expense, here are some tips:

• Life is filled with surprises, so having an emergency fund can help ease your stress if you’re faced with unexpected expenses. Even small amounts of savings accumulate over time to provide a financial safety net, leading to a sense of security and peace-of-mind
• Explore insurance solutions to safeguard yourself and your loved ones across your many needs, including personal accident, and more. You may wish to take out cover to protect what’s important, or purchase an insurance savings plan to help save for the future.

Identify your financial goals

If you are worried about your future financial position, these tips may help:

• Identify your most important long-term financial goal. Everyone has different priorities. Some people want a new home. Others want to fund their child’s education, support elderly relatives, or pursue an expensive hobby. Once you identify your target, it’s easier to reach.
• Allocate a portion of your monthly income towards a goal. Even if it’s a small amount, you’ll feel a sense of accomplishment putting aside savings each month. As your resources increase, you may choose to allocate more money to help you reach your goal sooner.
• Keep a reminder of your goal visible to keep you on track. Some people like to use a picture of their goal as their phone’s wallpaper or keep a note in their wallet to inspire them to save.
• Improve your financial literacy. The more you understand about money, the easier it may be to reach your goals. Educate yourself on financial concepts and good financial habits, and find a trusted source of advice. At Citi, we understand your aspirations and wealth goals evolve with time. We offer a range of wealth management services appropriate to your needs as you progress through life.
• Celebrate your accomplishments. As you make progress, celebrate milestones to remind yourself of your greater purpose. Treat yourself responsibly with promotions from Citi and enjoy the perks of using Pay with Points.
• Remind yourself that financial wellness is a journey and not a destination. Visual tools like the Citi Wealth Analysis Dashboard on the Citi Mobile® App allow you to view, manage and track your wealth portfolio 24/7. See how far you’ve come and uncover wealth opportunities from the palm of your hand.

From stress to wellness

Developing your financial literacy, working on a budget, and building in some protection, are positive steps towards achieving financial wellness and building a strong foundation for your financial future.

Disclaimers

This article is for general information only and is not intended to be a forecast of future events nor a guarantee of future results and should not be relied upon as financial advice. All views and opinions are as of the date hereof, and are subject to change based on market and other conditions without notice. The article has no regard to the specific objectives, financial situation and particular needs of any specific person. It is neither an offer nor a solicitation to purchase, nor endorsement or recommendation of any products or services mentioned therein, and the products or services mentioned may or may not be offered by Citibank Singapore Limited, its related entities and their respective directors, agents and employees (together "Citigroup").

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