5 Ways To Be Less Freaked Out About Your Finances 2021

Talking about money is not always easy. Finances can be a disastrous issue for many. However, there are certainly ways to reduce this stress. It is important to control your money – so that your money or lack thereof does not control you.

1. Understand that you are not alone.
When your finances surprise you, find solace first by knowing that you are not alone. In fact, most people are depressed by their financial situation, their financial future, or both.

In fact, according to a recent Thriving Wallet study by Thrive Global and Discover, 90% of Americans admit that money is stressful. According to another Credit Wise study by Capital One, finances are actually the number one source of stress for 73% of people, even worse than politics (59%), work (49%), and family (46%). f) And while financial hardship doesn’t absorb everything, another study by the American Psychological Association reports that 72% of Americans stress about money, at least sometimes.

In other words, we are all together.

2. Make a better budget.
One of the surest ways to take control of your finances is to have a sustainable budget. For example, you can do this by following the very simple 50/30/20 rule.

The 50/30/20 rule divides after-tax income into three categories.

50% of your needs (rent and mortgage payments, auto insurance, health care, etc.)
30% for your wishes (their morning coffee, premium subscription to Spotify, itineraries, etc.)
20% of savings and investments (investments, savings, IRA contributions, etc.)
If you follow this rule, your needs should be half of your income, and you want to fulfill your current lifestyle and save for your future. You can divide your residual income after taxes.

It’s also important to prioritize your needs so you can better buy what you think and what you don’t need. For example, by reducing recurring costs for infrequently used subscriptions or making coffee at home instead of drinking coffee on the go, more space can be made for dinner and weekend breaks. growth.

3. Make a financial plan.
It is important to have a financial plan as it will give you an idea of ​​your financial situation. Deciding where to go in 5 or 10 years is the first step in understanding exactly how to get there.

The plan should basically be a list of future goals broken down into achievable phases. Breaking big goals into smaller ones will keep you motivated. A comprehensive study confirms that small wins are powerful.

4. Join a collaborative community.
The truth is that the history of money is taboo. But economically, more and more people are looking for people who take the same route or walk in shoes. After all, we are all human and support is a basic human need. To meet this need, self-help groups gather on social media channels. So join a community that provides a comfortable and safe place to discuss anything about money management.

The Q.ai Discord channel is the perfect community to start with. Discord Server is an online community open to anyone interested in learning more about Q.ai and investing in general. Currently the only place you can access Qai’s AI-powered investment portfolio, including weekly tickers and performance updates. Community members also have access to channels for investment advice, market commentary feed, and product updates.

5. Invest in AI.
I’ve said it before, but I’ll say it again. AI is changing the investment game. Investing in particular can lead to more money than the money you have in your savings account. After all, investments usually have an average annual return of 10%. And the earlier you start, the longer your money will need to grow over time due to compound interest rates and market growth.

AI goes a step further by enabling FinTech users to make more informed and informed decisions thanks to a reduced number of incoming learning algorithms. For example, Q.ai uses the power of AI to intelligently allocate and rebalance investments. You don’t have to ignore it, but you don’t have to sacrifice the financial management you’ve worked so hard for to get on this list.

Do you like what you read? Subscribe to the free Forbes AI Investor Newsletter here and receive weekly AI-led investment ideas. For a limited time, customers can join very weak groups to get these ideas before the market opens.