The 3 Most Common Sources of Financial Stress and How to Fight Them

Some might say that stress about finances just comes with the territory of being an adult. But knowing how common financial concerns are doesn't make them any easier to deal with.

If you want a little less financial pressure on your plate, try to identify the specific stressors in your life and come up with strategies to combat them. Below, we'll take a look at three of the most common sources of financial stress, according to a recent Clever survey, and what you can do about them.

1. Not having adequate emergency savings

Nearly 7 in 10 surveyed said they are stressed because they don't have enough emergency savings. This is understandable because emergency expenses can crop up at any time, and they can sometimes cost thousands of dollars or more. Often in these situations, you have little choice but to pay the bill, and you may not have the opportunity to shop around for a more affordable solution.

Without adequate emergency savings, you could wind up with debt. This may prevent you from saving for your long-term goals or even paying for your monthly bills. So a fully stocked emergency fund should be one of your top financial goals if you don't have one already.

At a minimum, you should aim to save at least three months of living expenses. Some people prefer to save six or more months of expenses, especially if they fear that they could be out of work for an extended period of time following a job loss.

Calculating how much you should keep in your emergency fund isn't too difficult, but saving for it is another matter entirely. Ideally, you'd have some extra money each month you could set aside in a high-yield savings account to cover these costs. But if you're barely able to cover your bills, this could be impossible.

In that case, you may have to consider working overtime or finding a better-paying position to get more money coming in. You could also try a side hustle. Windfalls can help too. If you receive extra money in the form of a tax refund or a year-end bonus, put that toward your emergency savings first.

2. Spending more than you earn

More than half of the respondents in the Clever survey reported stress over the fact that they are spending more than they earn routinely. This is also a common pathway to debt, and once you fall into this trap, it can be difficult to get out.

There are two ways to remedy this problem: You can either boost your income or reduce your spending. For those who are prone to a lot of discretionary purchases, the latter could be the way to go. Build a budget so you can track where your money is going and try to limit yourself to just essential purchases for a while. Put any extra cash you have toward paying off your debt or in a savings account.

Reducing your income could also involve more drastic steps, like downsizing your home or moving to a more affordable neighborhood. But it's up to you to decide whether you're comfortable making these moves.

Boosting your income may involve negotiating a raise, finding a better-paying job elsewhere, or starting a side hustle. If you're not able to find many better-paying opportunities in your area right now, consider moving, looking for remote work positions, or pursuing further education. There are a lot of online learning opportunities these days that cost a fraction of traditional university courses, and some employers are willing to accept these in lieu of a degree.

3. Not having enough money to afford necessities

Going hand in hand with the previous response, many survey participants say they don't have enough money to afford their basic necessities. Some of the tips above for boosting your income can be helpful here, but you may also want to explore assistance programs in your area to help you with your essential bills.

You may be eligible for Supplemental Nutrition Assistance Program (SNAP) benefits to help with your grocery costs, for example. And your state or local area may also offer utility and housing assistance programs for low-income families.

Explore all the options available to you before deciding how to proceed. And if you apply for any government assistance programs, be sure to note all eligibility requirements so you don't encounter any surprises.

The financial issues discussed above aren't the sorts of problems you solve overnight. Even using the strategies mentioned here, it will probably take a while before you achieve the security you're looking for. But stick with it. Over time, these choices will start to stack up and they can make a big difference to your lifestyle.