Spending and Saving

The Yin and Yang of Financial Stress

Balance in our personal finances is important; when place too much emphasis on any one aspect of our financial plan, we often harm our financial (and emotional) wellbeing. Strive for equilibrium in these seven key areas:

Spending And Saving.

Saving for a rainy day is extremely important; however, it must be balanced with enjoyment of the journey.  If you are afraid of what your financial future might bring, focus instead on what you want your future to bring.  This doesn’t mean you should spend crazily…we’re talking about balance.

Taking Risks.

On one hand, being too conservative might inhibit your ability to reach your long-term goals.  This is especially true when your investment decisions (or, more typically, inaction) are fear-based. On the other hand, while investors who take too many risks may reap bigger returns, they are also setting themselves up for very big losses.

Paying Attention.

Don’t bury your head in the sand when it comes to your finances – but don’t go to the other extreme by obsessing about things you can’t control. You neither want to be like someone who checks her weight three times a day, nor do you want to be someone who only wears elastic pants so she never has to confront the issue. Do you have a financial disorder?

Giving And Receiving.

One of the best strategies for reducing financial stress and increasing prosperity is to give charitably.  When we give, we focus on others and instill ourselves with confidence that we have enough money that we can spare some. Of course, balance is important here as well. Don’t give to the point that you put yourself at risk. Remember: It’s just as important to receive graciously, as you are giving someone else the happiness that comes with giving…

Read the rest of this article at LearnVest: The Yin and the Yang of Financial Stress.

Tags: personal finance, Spending and Saving