Here are three of the best ways to feel less stressed when it comes to money, especially as we head into the new year!

While there are so many different ways to make money on the side, we can feel that we need to earn more money because we believe we should have more than we already have. In the pursuit of a secure and comfortable financial life, we need to get the balance right between earning, saving, and investing. So what do we need to consider so that we can achieve that notion of financial comfort? Here are a few things to bear in mind.

Healthy Spending Habits

Lots of people think the key is about having a life of abundance. Of 3,500 Americans asked, 66% said that winning the lottery would make them a happier person, but it’s important to recognize that financial comfort is not just about luck or windfalls. While a sudden influx of funds can make a big difference in our state of mind, we have to remember that solid financial habits are the key. We need to think about the differences between what we need and what we want and allocate our resources accordingly. When we think about the concept of financial comfort, so many people associate it with being poor, but actually, it’s about making the right choices by prioritizing quality over quantity and understanding the long-term value and utility of certain purchases. This is where smart spending habits will make a massive difference.

Investing What You Can Afford to Lose

Saving is essential, and when we have a safety net for unexpected expenses, this can make a massive difference. We should focus on building an emergency fund that covers approximately three to six months of living expenses. This may seem completely unattainable for certain people, but we have to recognize the importance of building up slowly and with whatever little we have left over. The fact is that it all can add up. There are many automated savings apps such as Plum that can get you into the mindset of squirting away whatever little you have. On the other side of the coin, you should look at investing. Investing is one of those powerful tools that can seem like a foreign language to so many of us. The one golden rule of investing is that only invest what you can afford to lose. No matter how little this is, there are options available to you. But you need to explore your options based on your financial goals, risk tolerance, and how long you wish to invest for.

Ongoing Financial Education

So many of us think that money is money, and there’s nothing else to it, but we can always benefit from educating ourselves about personal finance, the principles of building wealth, and other investment strategies. When we are continuously enhancing our financial knowledge, we can take the power back, as it were, to make more informed decisions and navigate economic shifts.

Financial comfort is one of those things that a lot of people don’t necessarily think about because they always want more. There are a number of external factors, but the key to lasting financial comfort is all down to the discipline you have.