Seven tips to manage your stress and money

Q I am a single male in my early 30s. My income is fixed with very little savings and I’m still afraid of an economic downturn. Should I have a more optimistic approach?
- Dale, Toronto

A The media often does a great job reporting bad news because it is what many tune in for. What’s more interesting? “100 families lose jobs and homes, must live in homeless shelters” or “Mom buys new mini-van to drive kids to dance class”? I am in the corner of “the glass is half-full” on this one. However, optimism is not a bubble that is oblivious to world economic issues.

This might be a good opportunity to take a closer look at your work ethic, organize priorities and formulate a contingency plan. Individuals cannot eliminate the anxiety of losing a job, or how to pay next month’s mortgage, but they can take steps to manage the stress. Stress is not managed like a car hitting a large rock, but more like water that flows around it. There could be something to this Yoga stuff.

Here are 7 tips to help ease the stress:

1. Sit back and take inventory

2. Create a budget or review your monthly cash flow

3. Be objective and cut unnecessary expenses

4. Have an emergency fund, savings account or start a Tax Free Savings Account

5. Reduce your use of credit

6. Apply for a line of credit for use only on rainy days. Banks will loan money when times are good, but not when they are deteriorating

7. Have sincere interest in your job. Inaction is simply not an option. Take control of your current situation, and your future.