How to manage financial stress?

You MUST know well the best use of the resources you have and how to find others as well in the time being and to put it in your furture plan as well in order not to face suddenly financial stress anytime, but you will be ready to face it any time.

Work on reducing your expenses and maximizing your revenue.

(A). Ignore Amy (B). Distract Yourself (C). Surrender Control (D). Know Thyself (E). Turn It Off (F). Get Greedy (G). Do Nothing (H). Trust

Arrange the facilities from bank

treduce receivable period

increase credit period

dont invest in inventory

try to sold dead stock by special offers

• Pause but don’t panic. There are many negative stories in newspapers and on television about the state of the economy. Pay attention to what’s happening around you, but refrain from getting caught up in doom-and-gloom hype, which can lead to high levels of anxiety and bad decision making. Avoid the tendency to overreact or to become passive. Remain calm and stay focused.
• Identify your financial stressors and make a plan. Take stock of your particular financial situation and what causes you stress. Write down specific ways you and your family can reduce expenses or manage your finances more efficiently. Then commit to a specific plan and review it regularly. Although this can be anxiety-provoking in the short term, putting things down on paper and committing to a plan can reduce stress. If you are having trouble paying bills or staying on top of debt, reach out for help by calling your bank, utilities or credit card company.
• Recognize how you deal with stress related to money. In tough economic times some people are more likely to relieve stress by turning to unhealthy activities like smoking, drinking, gambling or emotional eating. The strain can also lead to more conflict and arguments between partners. Be alert to these behaviors — if they are causing you trouble, consider seeking help from a psychologist or community mental health clinic before the problem gets worse.
• Turn these challenging times into opportunities for real growth and change. Times like this, while difficult, can offer opportunities to take stock of your current situation and make needed changes. Think of ways that these economic challenges can motivate you to find healthier ways to deal with stress. Try taking a walk — it’s an inexpensive way to get good exercise. Having dinner at home with your family may not only save you money, but help bring you closer together. Consider learning a new skill. Take a course through your employer or look into low-cost resources in your community that can lead to a better job. The key is to use this time to think outside the box and try new ways of managing your life.
• Ask for professional support. Credit counseling services and financial planners are available to help you take control over your money situation. If you continue to be overwhelmed by the stress, you may want to talk with a psychologist who can help you address the emotions behind your financial worries, manage stress, and change unhealthy behaviors.

What do you do when you’re stressed-out about losing your home, car, stocks, bonds, retirement savings, college funds, and everything else in the lyrics of a bad country song?

I don’t really know, to be completely honest. But here is an attempt to shed some light on some better ways to manage your financial stress and stop stressing so much about money.

1. Ignore Amy.

The amygdala, the almond shaped group of neurons in the limbic system of the brain, is considered by most neurobiologists our fear system, and it acts like an ape or a how a human would have acted, say, back when we still had lots of hair all over. The adrenaline that you are feeling when you see stock exchange plummet is the Amidala getting crazy, hosting a party in your head, whatever. I call my amygdala “Amy.” And whenever I panic, I tell her to go take a nap that I can’t tolerate her noise and ruckus right now.

2. Distract Yourself

It’s not easy to quiet your amygdala, which is why the best thing you can do for yourself at times is to distract yourself. My mom knew the importance of this point when she knitted100 blankets the year my dad left. For every occasion for about10 years, everyone would receive an afghan as a gift. Until she stopped getting invited. (Just kidding.) This activity pulled her through the worst years of her life.

3. Surrender Control

The most uncomfortable part of financial anxiety is the lack of control most of us feel. It’s contrary to our human psychology. We want to drive the car, or at least be the passenger in the front seat giving directions. But in an economic downturn, we’re not even in the car. We have no say on which rest stations we are stopping at. In fact, much of the time if feels like we are riding in the trailer hitched to the back of the car. With the horses. Admitting that we’re not in control can be somewhat liberating. Because the stock market is life: you win some, you lose some, and you don’t have a whole lot of say in the whole matter.

4. Know Thyself

I have a friend who always freaks when the stock market dives. She sells all of her stocks and then invests again when they go back up. And she loses a lot of money in the process. Part of her problem, I think (and I can say that with authority because I am not her), is that she doesn’t know her risk tolerance. If she would realize that she has a low risk tolerance, then she’d see that she’d be better off in bonds and more conservative investments. Instead, she pulls out whenever there’s movement on Wall Street. Just like every other kind of anxiety, knowing your financial comfort zone can lead you to a path of peace. Or so they say

5. Turn It Off

Just like I said in my post “8 Ways to Manage Anxiety on an Anniversary,” one of the worst things you can do for your amygdala, or fear system in the brain, is to keep the TV and radio tuned into the latest news on Wall Street, to keep checking cnn.com to find out what the newest number is. This kind of compulsive behavior is toxic for the obsessive, sensitive folks who are prone to anxiety even without a reporter telling them to run for cover. Treat your amygdala well. Turn the news off. Except for this piece, of course.

6. Get Greedy

This point may seem contrary to the others, but I have studied investment strategies, and think there’s logic to what Warren Buffet once said: “When everyone is fearsome, that’s the time to be greedy, and when everyone’s greedy, that’s the time to be fearsome.” What does he mean? It’s the same sort of logic I describe in my “12 Depression Busters”: when the last thing you want to do is to get dressed and say hello to some folks, that is the time when doing so is more important than ever. So if you are afraid to invest a few hundred dollars into a course that could potentially get you a raise … don’t think about the dollars and concentrate on the potential raise.

7. Do Nothing

If you realize that your risk tolerance is quite low or if you have absolutely no money to invest, you can relax and do nothing. A story I read the other day profiled a guy who threw away his PIN number so that he couldn’t check his stocks any more. Just knowing that downturns are part of the economic process for the reward of high gains — that you have to risk volatility to acquire any profit and that this is all the nature of the beast — can sometimes help you sit tight and hang on during the wild ride.

8. Trust

I often make the point in dealing with severe depression that you absolutely have to trust that you won’t always feel so horrible and hopeless, that you will get better. Part of successful cognitive behavioral therapy is trusting in that optimistic message.

Prepare three days Financial STRESS TEST module; and update with all the sources of funds and its uses/application. This will provide the status where you stand on liquidity of funds.

Ask for overdraft facility from banks to manage the short term projects or operating expenses to manage the financial stress.

Try to relax and avoid thinking about the problem for some time to clear your mind. After that; try to do your best in order to think without being intense.