We’ve all faced money struggles at one point or another in our lives, but did you know that financial anxiety is on the rise for many Canadians?

Results from the latest Financial Stress survey commissioned by the Financial Planning Standards Council showed 4 in 10 Canadians ranked money as the greatest stressor in their lives, more so than their health, work and relationships.

This is a trend that has been steadily rising over the last few years, and it can spill over into other areas of our lives resulting in a number of mental, physical and emotional health risks.

For many of us, money plays a big role in all areas of our life. Particularly living in British Columbia where the cost of living and housing can be significantly higher than other areas in Canada, and with many living paycheque to paycheque. All those factors can absolutely affect a person’s well-being.

Here are three ways to help reduce your financial worry and get on the right track.

Don’t run away

Sometimes, we tend to avoid talking about— or facing— our money challenges because of embarrassment or lack of awareness. Waiting often makes the problem worse.

For instance, if a credit card payment seems insurmountable and you ignore it, the bill is only going to be higher next time around because of the interest. Not to mention, missing payments can be a bad thing for your credit rating. Most importantly, if you’re struggling, don’t go at it alone. 

Get help

The first step in admitting you need help is often the most daunting as many people are nervous they will be judged for their financial situation. This perception couldn’t be farther from the truth. It’s the job of the financial advisors to help you, especially if you’re struggling. And regardless of whether you have $500 or $50,000 in debt, if you’re feeling anxious or stressed about your finances, come into any Valley First, a division of First West Credit Union and they'd be happy to talk you through your options and show you how to create an action plan and budget that works for you. 

When I meet with members who have financial stress, I always recommend a couple of things.

• Savings Plan- Even if they have debt, it is important to build savings and pay down the debt simultaneously. Let’s say they are paying down debt over a period of two years and at the same time they stash away $25 in a savings account. After two years, they will have $600 which can be used as an emergency cushion. Saving $25 can be as simple as packing a lunch for two days instead of eating out.

• Budget- The other tool I like to use in this situation is to create a budget and have auto-transfers set-up on payday which goes into separate accounts for each bill (hydro, water, internet etc.). Don’t forget to include $25 for your savings account! Once all the auto-transfers are complete, you’ll know exactly how much spending money you have for the two weeks.

Put in the work

Changing your financial habits is not an easy fix and will require work and commitment from the individuals looking to make the change. Whether it’s trying to change your spending habits, or get ahead of your finances, you’ll have to put in the work. Everything from tracking your money, to using lists to help guide your spending, to setting a budget and then following-up with your financial advisor every couple of months to making yourself accountable. These are all small ways to help you start making positive steps towards a healthier you.

Terry-Lynn Vint, is a Senior Financial Advisor at Valley First, a division of First West Credit Union. Connect with Terry-Lynn at TVint@valleyfirst.com.