Sometimes learning how to reduce financial stress has nothing to do with being a good money manager. No matter how good you get at managing money (saving, budgeting, managing cash flow, etc.) and no matter how much financial knowledge you acquire, sometimes the only way to deal with financial stress is to earn additional income. Sometimes that daily grind job is just not enough and for some, it will never be enough.
Earning extra income can be the very best way to manage financial stress. Of course, it has to be done correctly, it has to be done strategically. So often, people choose to do something on the side to earn a little extra money, but they have no plan, they do no research, they take advice from all the wrong people and then they jump into a new venture or a new job only to find they have more stress than ever before. If you don't know how to reduce financial stress or prevent stress in a new venture or a new job, you would be better off not getting started at all.
It's a good idea to learn as much as you can about how people actually make money before you take on a new commitment such as a second job, starting a business or trying investing.
In his well-known bestselling book called Rich Dad, Poor Dad, Robert Kiyosaki talks about how to reduce financial stress. He explains there are four main ways that people earn money. These are as follows:
Each way of making money comes with its own version of stressors. Maybe you can blend together several different forms of income. If your multiple streams of income are all cash flow positive, then collectively they may offer you enough money to appropriately reduce financial stress.
Regardless of how you earn enough income to manage your life, you should never stop learning how to reduce financial stress; you should never stop learning about money. So many things change in the world when it comes to money and economics and change often happens very quickly.
The only real protection is knowledge and skills. The more you know about money and how it works, the more likely you will be to deal with money issues that arise without driving up your stress level and without creating a situation that leads to chronic stress.