While many people focus on saving and investing, far fewer are clear about what they are saving or investing for – or whether it will ultimately be enough to support the life they want.

Practical tips

There are many ways to reduce financial stress and no one-size-fits-all solution will address everyone’s unique financial, demographic, and professional situation. That being said, here are five practical guidelines to get you started on the path:

Be vigilant, not restrictive – Do you know where the money your earned last year actually went in detail (not just the large amounts)? This isn’t budgeting - it’s tracking spending visibility. You can’t improve if you don’t know where you are now or what happened before. Doing so help many discover unnecessary expenses so track them regularly (monthly, quarterly, etc.) and compare them.
Spend intentionally - Quality of life is about spending intentionally on what matters to you – daily habits, luxury items, etc. – if it is part of your plan. Life is about happiness which people have different ways of achieving. It is important to protect what brings value to you (family time, health), even though there is a cost (hiring a cleaner or personal trainer).
Automate the invisible - The most sustainable financial systems work without requiring daily willpower. Set up automatic transfers on payday: emergency fund, retirement contributions, and specific goals (down payment, college fees, etc.) so each get their portion before you spend it to help ease the burden of choosing later.
Simplify financial footprint – Reduce complexity by consolidating accounts, limiting the number of financial products, and using rules to determine allocation. Fewer decisions lead to better outcomes. Money management is less about sophistication and more about structure and clarity.
Make money management a proactive habit, not an afterthought – Financial stress normally comes from the mental energy consumed by uncertainty and the relationship strain from money-related conflicts. The goal isn’t to optimise every dollar earned but create enough structure that money stops being a constant source of worry while preserving the flexibility and quality that make life enjoyable.

From control to design

We need to shift from control to design – stop having money control your life and design how money can help your life. Traditional money management focuses on control: tracking expenses, monitoring accounts, and exercising willpower. Control is exhausting and fragile. A low-stress approach focuses on design. Well-designed systems reduce mental load – and stress drops as a result.

Arvind Garg, Special to Gulf News

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Rethinking money management to regain control