You might have been comfortable with your financial retirement plan last year, but everything turned upside down since then. However, the world and the economy are unprecedented that no one could have anticipated. As baby boomers near the end of our careers, we need to reinvestigate our retirement financing options. There is also a significant amount of stress associated with financial uncertainty. Financial stress can cause worry, fear, and anxiety about finances. Sometimes, it can even cause physical symptoms like insomnia, headaches, and fatigue.
For some, financial stress is not easy to identify, but the symptoms are real. If you start feeling off but aren’t sure what the cause could be, watch out for increased levels of anxiety, depression, trouble sleeping, or weight fluctuations. In general, stress is detrimental to your health, but financial stress can be especially harmful because it can affect your future well-being. It is prevalent for people experiencing financial pressure to turn to alcohol or other unhealthy habits, but it is crucial to address this issue head-on. Here are some initial steps to help reduce your stress level.
Tips to help cope with financial stress
The first step to dealing with financial stress is to review your financial situation. You may have some reservations about taking this step; however, being honest with yourself about your financial situation will help you feel more in control of your life. Here are some additional tips to help you on your retirement journey.
Get a real picture of your living expenses and create a budget. If you’re already retired, then your living expenses should be somewhat consistent. One easy method to review annual living costs is to check your bank statements. Divide your costs into essential items and non-essential items. Take a hard look at the non-essential items that cost you the most for the last year – there will be the “low hanging fruit” in your budget to address first. For example, many of us get coffee in the morning without putting much thought into it, but these costs translate into significant amounts when you put them together.
Manage your stress. Luckily, many of the best techniques that reduce stress are free! As you work on improving your financial situation, here are some techniques that can help:
- Take a breath. As you improve your financial situation, you can reduce stress by practicing stress-reducing techniques and making other changes to create a low-stress lifestyle.
- Get your blood pumping. Exercise is one of the best stress relievers you can practice. Once you elevate your heart rate, you may start feeling better. If you haven’t exercised in a while, consult your physician. If everything checks out, exercise can get your blood pumping, endorphins going and can help to reset your mind to a less stressful state. Go for a walk with a friend, play pickleball, or work out at home with some jumping jacks. You don’t have to spend money on an expensive gym membership to get in shape. The key is to stick to your routine, and getting friends involved with your resolutions can help keep you on track.
- Laugh away your stress. When we are stressed, it is essential to remember to laugh. Laughter is considered ‘the best medicine’ – try to remember the lighter side of life and make time to enjoy some carefree time with friends.
- Get lost in the music. Listening to music has proven benefits that help keep our brains sharp and engaged. Songs can resonate and bring memories to the surface, bring a smile to your face, and more.
Create an alternate source of income. As this sounds like the most obvious solution, most Americans do not realize the power of the equity that they built into their home. Back in the day, our parents had pensions to rely on after their careers – that is not the situation for most of us today.
Learn more about your options
Everyone’s situation is unique, so you need to look into your options to alleviate anxiety and financial concerns. Just like your 401K, IRA, or annuities, home equity is a powerful financial tool that can significantly enhance your retirement funding plan. Contact a Finance of America Reverse, LLC (FAR) representative today to learn more about reverse mortgage benefits and how they may help you secure long-term financial freedom.
Oregon Only:·When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. FAR may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan).·The balance of the loan grows over time and FAR charges interest on the balance.· Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
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