Let's start with a short quiz to determine if you have reason to have financial stress in your life. Answer each question with a simple yes or no.
Score of 0 to 2 - Your financial health is on life support. It would very appropriate for you to be stressed.
Score of 3 to 4 - You're in intensive care. A lot of stress would still be in order.
Score of 5 to 6 - You're on the road to recovery. You can pay staff to be stressed on your behalf.
Score of 7 to 8 - You're in excellent health. No need for stress at all.
Reference: Robert G. Allen, Multiple Streams of Income, 2000
There are three key answers to this question of dealing with financial stress. I will give the second and third answers first. The second is you must have multiple streams of income and the third is, at least a few of these streams need to be from passive sources.
However, the FIRST, and by far the most important, answer to the question of, "What do you do about financial stress?" is that you must educate yourself about money. The only way to take away the power that money and financial stress have over your life is to make money your best friend, at least for a while. Most people are stressed and worried because most people feel threatened by money and what it represents.
Now, I don't mean that you need to worship money, but think about this fact. Most people have a love-hate relationship with money. If you had a love-hate relationship with your children or your spouse or your job, how much stress would be a part of those situations. Lots, of course.
However, most of us try to have fairly good relationships with the important people in our lives and as a result we are able to enjoy those relationships most of the time and if there are some turbulent waters from time to time, we are able to whether the storm. In order to make this possible, we spend time getting to know and building relationships with the important people in our lives.
Not so with money. With money, we either worship it or we hate it. We either dream about having more or we despise the fact that there is not enough of it. We obsess about protecting it and we go into debt and spend it whether we can pay it back or not. We create so much of our own financial stress.
Can you imagine what your life would be like if you treated your friends and family that way? Money frustrates us, we exploit money, we demand money, we scream and yell about money, we cry about money and the list goes on.
I think it goes without saying that if you treated your kids that way, they would eventually run away from home. If you treated your spouse that way, you would be divorced. If you treated your boss and co-workers that way, you would get fired. If you treated your friends that way, I doubt you would have them for long.
However, if you took the time to get to know money, to understand money and to care about its needs, then you would be able to develop a far stronger relationship with money and money would no longer cause you stress. In fact, it is more than safe to say you would be able to attract far more of it to you than you may currently be attracting. Once the financial stress goes away and all the agitation as well, you would find it much easier to get your hands on the money you need and then some.
Once this is done, you can move onto answers 2 and 3 about multiple streams of income and passive income.