Watch episode 128 now.

Sandra Pierce, 'The Bag Lady of Bay Street', and Senior Vice President of Blackmont Capital Inc., dropped by and gave us 5 tips to reduce financial stress.  Something almost ALL of us can relate to!

1. Work...

...toward getting out of debt by turning your attention to the things you can control.  Let's avoid the word budget because it oozes with bad feelings of restraint and austerity so forget about the B word.  Write out the things you have to spend money on - food, rent, the mortgage - and compare your spending to your debt.

Discriminate between what you want and what you need.   It's not easy to cut back in today's materialistic culture - because the lines have become so blurred between wants and needs.

2. Put the credit cards away. 

Buy nothing on credit.  Money isn't the root of all evil - it's credit cards.  Go back to the old fashion way of buying something - use cash.  The interest payments that you are racking up on your credit cards if you're not paying off the balance every month will consume your wealth.  I wouldn't cut them up because you don't want to add to your stress by having no emergency back up, but give them to a friend.


3. Don't be afraid of asking for help. 

I sometimes think money is the last taboo.  Even sex and your shrink appears to be fair game for polite conversation today.  But I think people are afraid of admitting their financial cluelessness to others or ashamed of their bad decisions.  It isn't easy to admit to failure - but get over your hang ups and join what I think is an emerging national conversation about borrowing and spending habits.

I've long lamented that there are more book clubs out there than money clubs.  I believe that many of us would be more successful in meeting our financial goals if we met regularly with a small group of like-minded people to lay our finances bare.

4. Take a Fiscal Health Day Every Six Months

I suspect we all have a never-ending list of undone financial tasks that stress us out; but who has time for all but the essential financial chores on any given day.  So I suggest and I do this myself.  Once or twice a year devote a 10 hour day - on a weekday - when all the phone lines and financial institutions are open, to tackle your money matters with no interruptions.

5. Avoid the Media
Eliminate or minimize the practice of watching the news and reading newspapers. It's important to remember that even respected news sources do not always give a truly balanced and accurate portrayal of reality out there. Too much news consumption can  make it1 harder for you to maintain a positive outlook.  Stay motivated and keep your energy level up

I can assure you if you take ownership, take action and make it happen - substantially less financial stress will follow.