---
title: "Financial Stress: 7 Tips to Tackle Your Money Worries"
description: "Ever since the COVID-19 pandemic, a staggering 41% Malaysians have reported that their mental health has been affected by financial stress. And with the rising cost of living, along with the fluctuation of the Ringgit currency, it’s no surprise that a lot of us are feeling the pinch from the increasing price of Nasi Lemak. If you’re also worried about money, you’re not alone. Today we’ll talk about how you can manage financial stress and share some tips on how to improve your financial well-bein"
url: "https://www.mrmoneytv.com/articles/financial-stress-7-tips-to-tackle-your-money-worries/"
category: "Personal Finance"
author: "Finlit"
published: 2024-07-25
updated: 2024-07-26
source: "Mr Money TV"
---

# Financial Stress: 7 Tips to Tackle Your Money Worries

Ever since the COVID-19 pandemic, a staggering 41% Malaysians have reported that their mental health has been affected by financial stress. And with the rising cost of living, along with the fluctuation of the Ringgit currency, it’s no surprise that a lot of us are feeling the pinch from the increasing price of Nasi Lemak. If you’re also worried about money, you’re not alone. Today we’ll talk about how you can manage financial stress and share some tips on how to improve your financial well-bein

## Key takeaways

- Since the COVID-19 pandemic, 41% of Malaysians have reported that their mental health has been affected by financial stress, according to AKPK.
- Build an emergency fund of at least three to six months' worth of expenses, and use automatic transfers into a no-touch account to stay consistent.
- Tackle debt with the snowball method (smallest debts first) or the avalanche method (highest-interest debts first), or consolidate high-interest debts into a lower-interest loan.
- Make goals specific: a short-term goal could be saving RM5,000 in six months, while a long-term goal might be buying a house in five years.
- If you feel overwhelmed, AKPK (Agensi Kaunseling dan Pengurusan Kredit) offers free financial advice and debt management services.

Ever since the COVID-19 pandemic, [a staggering 41% Malaysians](https://www.akpk.org.my/insights-l-financial-stress-psychological-health-are-our-employees-protected#:~:text=Research%20by%20AKPK%20has%20shown,been%20affected%20by%20financial%20stress) have reported that their mental health has been affected by financial stress. And with the [rising cost of living](https://www.youtube.com/watch?v=U20F7WRieRI&t=7s), along with the fluctuation of the [Ringgit currency](https://www.youtube.com/watch?v=ldOv6YLJcxM), it’s no surprise that a lot of us are feeling the pinch from the increasing price of Nasi Lemak. If you’re also worried about money, you’re not alone. Today we’ll talk about how you can manage financial stress and share some tips on how to improve your financial well-being. 

## What is Financial Stress?
Financial stress is the anxiety and worry that come from facing financial difficulties. This can include not having enough money to cover expenses, dealing with debt, or worrying about future financial stability. Financial stress can affect various aspects of your life, from your mental and physical health to your relationships and overall quality of life. Recognising and addressing financial stress is crucial for maintaining both your well-being and your relationship with money.

## Signs of Financial Stress include:
### Constant Worry
If you find yourself frequently worrying about money, it’s a sign that you’re experiencing financial stress.

### Avoiding Finances
Ignoring bills, avoiding financial conversations, or not checking your bank account can indicate financial stress.

### Physical Symptoms
Stress can manifest physically, causing headaches, sleep disturbances, and other health issues.

### Impact on Relationships
Financial stress can lead to arguments and strain in relationships with family and friends.

![A couple fighting at home](../../assets/articles/financial-stress-7-tips-to-tackle-your-money-worries/img-1.jpg)

## Tips to Manage Financial Stress

### 1\. Improve Your Financial Literacy

In other words, educate yourself. Building a solid financial literacy foundation will make a significant difference in your personal finances, as it will empower you to make better financial decisions. Read books like “Rich Dad, Poor Dad” by Robert Kiyosaki or “The Total Money Makeover” by Dave Ramsey. *(**Check out our* [*Best Money Tips playlist*](https://youtu.be/2xtbtSjmYmk?si=-RajioL_JC3T8fxs) *on our* [*YouTube channel*](https://www.youtube.com/@MrMoneyTV)*!)*

### 2\. Create a Budget

A budget helps you understand where your money is going and where you can cut back on. List all your income and expenses, categorise them, and set spending limits for each category. Create a budget that forces you to [spend within your means](https://www.mrmoneytv.com/post/lifestyle-inflation-what-is-it-and-how-do-i-stop-it). You can use budgeting apps like [You Need A Budget (YNAB)](https://www.youneedabudget.com) or [Wally](http://wally.me) to track what goes in or out of your account. If food takes the biggest chunk out of your salary, check out our article on [how to cut down your food budget](https://www.mrmoneytv.com/post/10-clever-ways-malaysians-can-cut-their-food-budget).

### 3\. Build an Emergency Fund

An emergency fund acts as a financial cushion for unexpected expenses. Start small by saving a portion on your income each month until you have at least three to six months' worth of expenses saves. You can set up automatic transfers into a no-touch account to stay consistent with your savings.

![Financial Stress: 7 Tips to Tackle Your Money Worries — image 2](../../assets/articles/financial-stress-7-tips-to-tackle-your-money-worries/img-2.jpg)

### 4\. Prioritise Debt Repayment

Paying down your debt can relieve a lot of financial stress. In Malaysia, the outstanding balance for BNPL transactions is RM0.9 billion, while credit card debt stands at RM40.3 billion in 2023. Use strategies like the debt snowball method (paying off smallest debts first) or the debt avalanche method (paying off highest-interest debts first). Consolidate high-interest debts into a lower-interest loan to simplify repayment. *(Learn the top* [*3 Methods to Pay Off Your Debt in Malaysia*](https://www.mrmoneytv.com/post/3-methods-to-pay-off-your-debt-in-malaysia)*.)*

### 5\. Set Financial Goals for Yourself

Having clear financial goals gives you a sense of direction and purpose in your financial journey. Set short-term and long-term goals, and create a plan to give yourself a blueprint to follow in order to achieve them. For example, a short-term goal could be saving RM5,000 in six months, while a long-term goal might be buying a house in five years. *(Learn* [*How to save RM10,000 in 3 months!*](https://www.mrmoneytv.com/post/100-envelope-challenge-how-to-save-rm10-000-in-3-months)*)*

### 6\. Practice Healthy Financial Habits

Consistent financial habits lead to long-term financial stability. Pay your bills on time, avoid impulsive spending, and review your finances regularly. If you have trouble staying on track, set up reminders for bill payments and review your budget monthly.

### 7\. Seek Professional Advice

If you find yourself getting overwhelmed and are unsure of where to start, seek professional help from financial advisors to provide personalised advice and strategies to manage your finances. Look for certified financial planners or use free financial counselling services. Organisations like [Agensi Kaunseling dan Pengurusan Kredit (AKPK)](https://www.akpk.org.my/ms?latest-updates=all) offer free financial advice and debt management services.

## Key Takeaways

-   Financial stress is common, but it’s important to address it to maintain your overall well-being.

-   Creating a budget, building an emergency fund, and prioritising debt repayment are crucial steps to managing financial stress.

-   Improving your financial literacy and setting clear financial goals can enhance your relationship with money.

-   Remember, it’s a journey. Take small steps, stay consistent, and seek help when needed.

By implementing these strategies, you can take control of your financial situation, reduce stress, and build a healthier relationship with money. If you're struggling, consider reaching out to a financial advisor or counsellor for personalised guidance.

*Subscribe to our* [*financial newsletter*](https://www.mrmoneytv.com/) *for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.*

## Frequently asked questions

### What are the signs of financial stress?

The main signs are constant worry about money and avoiding your finances, such as ignoring bills, skipping financial conversations, or not checking your bank account. It can also show up physically as headaches and sleep disturbances, and it can strain relationships, leading to arguments with family and friends. Recognising these signs early matters, because addressing financial stress protects both your well-being and your relationship with money.

### How much should I have in an emergency fund?

Aim for at least three to six months' worth of expenses. Start small by saving a portion of your income each month until you reach that cushion. Setting up automatic transfers into a no-touch account helps you stay consistent, so the fund keeps growing without you having to think about it. It acts as a financial cushion for unexpected expenses.

### How do I start paying off my debt in Malaysia?

Use the debt snowball method, paying off your smallest debts first, or the debt avalanche method, paying off your highest-interest debts first. You can also consolidate high-interest debts into a lower-interest loan to simplify repayment. Paying down debt relieves a lot of financial stress. Mr Money TV also has an article on three methods to pay off your debt in Malaysia.

### Where can I get free financial help in Malaysia?

Agensi Kaunseling dan Pengurusan Kredit (AKPK) offers free financial advice and debt management services. If you feel overwhelmed and are unsure where to start, seek professional help from a certified financial planner or use free financial counselling services. A financial advisor can provide personalised advice and strategies to manage your finances.

### How do I set financial goals?

Set both short-term and long-term goals, then create a plan that gives you a blueprint to follow. For example, a short-term goal could be saving RM5,000 in six months, while a long-term goal might be buying a house in five years. Clear goals give your financial journey a sense of direction and purpose.