7 ways to help reduce financial stress

If you're feeling overwhelmed about managing your finances, you're not alone. According to a recent Citizens survey, 57% of young adults say money stress affects their mental health, and 44% give in to social pressures that lead to overspending.

The good news is that gaining more control of your money doesn't require a complete financial overhaul — small, intentional steps can make a meaningful difference. Consider these seven simple action items to help reduce financial stress.

1. Review your budget

A budget helps you understand where your money is going and where you may have room to make improvements. Start by listing your monthly income and tracking your regular expenses, including bills, groceries and discretionary spending.

Look for areas where you could cut back on spending, such as dining out, canceling unused subscriptions or limiting impulse purchases. Even small changes can free up cash, allow you to save more and help you feel in control of your finances.

Once everything is laid out, you can choose from various budgeting strategies, such as the 50/30/20 or pay yourself first methods, to create a long-term budget and savings plan that fits your lifestyle and financial goals.

2. Define your financial goals

Having clear financial goals gives your budget a purpose. Think about what you want your money to help you achieve, whether that’s building an emergency fund, paying down credit card debt, saving for a major purchase or preparing for the future.

3. Prepare for the unexpected

Life sometimes throws curveballs, whether it’s the loss of a job, an unexpected medical expense or a car repair. These expenses can set your financial plan back if you’re not prepared.

Having an emergency fund can help give you peace of mind — if an unexpected expense occurs, you're better prepared to cover it. A good rule of thumb is to have three to six months of regular expenses saved in your emergency fund.

4. Tackle debt

Are you juggling multiple debt payments each month? Prioritizing debt repayment in your financial plan can enable you to feel more confident about your finances. It can also help reduce interest costs over time, ultimately saving you money in the long run.

Consolidating your debt can simplify your finances by reducing multiple payments into one. Depending on your financial situation, some options may include using a home equity line of credit (HELOC) to pay off higher-interest credit card balances or refinancing your student loans to combine several loans into a single payment. In some cases, consolidation may also help you secure a lower interest rate, which can reduce the total amount you pay over time.

5. Automate payments and savings

Setting up automatic bill pay can alleviate the stress of remembering to pay bills and help you avoid costly penalties for missed payments. Treat your savings plan the same way. You can automate transfers into your savings from your checking account, just like bill pay. That way, you'll have a better chance of sticking to your savings plan.

Financial tools, such as Citizens Savings Tracker®, can help you automate your savings so you can stay on top of your goals.

6. Plan ahead

Planning for your financial future can help reduce stress and set you up for long-term success. This includes building an emergency fund, saving for major purchases like a home, contributing to retirement accounts and investing to grow your wealth over time.

You may also want to focus on improving your credit score to qualify for better rates and opportunities. While investing can help grow wealth over time, returns are not guaranteed and values can fluctuate. These milestones don't happen overnight, so starting early allows time to work in your favor and makes long-term goals feel more achievable.

7. Ask for help

When it comes to your finances, you don't have to go it alone. A banking advisor or credit counselor can help you get a handle on debt and build an emergency fund. A certified financial planner can guide you as you begin saving for larger purchases or planning for the future.

Having a professional help you prioritize next steps and create a plan at each stage can provide clarity, reduce financial stress and give you more confidence as your financial needs evolve.

Ready to tackle your financial goals?

Managing money can feel stressful, but small, intentional steps can help you feel more in control. Plan, prioritize and take action on your goals — whether it’s saving, paying down debt or planning for your future. With automatic transfers from your checking to your savings account, you can set money aside and watch your savings add up.

Start saving

Frequently asked questions

Which employees should receive fraud prevention training?

All employees should receive fraud prevention training, with additional guidance based on their roles and access. Employees who handle payments, financial accounts, sensitive information or vendor relationships may need more specialized training.

How often should employees receive fraud prevention training?

Training should be ongoing rather than a one-time exercise. Reinforce key practices as fraud tactics, employee responsibilities or business processes change.

How can businesses make fraud prevention procedures easier for employees to follow?

Keep procedures clear and specific, particularly for payments, account changes and requests for sensitive information. Employees should know which steps to follow and who to contact with questions.