Small Steps in Reducing Financial Stress

Although people are becoming more financially aware, stress caused by financial challenges is still present among those in worse than average financial situations, according to a survey by Provident Financial Ltd.

With January typically a time when people are faced with the reality that holiday spending has depleted their resources, the company is highlighting that even small, simple steps can be taken to make responsible, secure financial decisions.

People in financial difficulty are constantly facing financial stress, which has a profound impact on their daily lives, quality of life and future financial decisions. According to a survey conducted by financial service provider in the summer of 2024, around three quarters (77.3%) of respondents had little or no savings in a year. This figure is down 4.7 percentage points on the previous year's survey, suggesting that those who may have spent more than their means allowed in December will start the year in a difficult financial position in January. Moreover, at this time of year, shops are tempting consumers to buy with heavy sales, which is hard to resist, but the company's experts have some suggestions.

Provident points out that even small, seemingly basic steps can make a big difference in reducing financial stress. For example, financial awareness is key, including planning income and expenditure. The company offers a range of help on the frauddikassza.hu website to help anyone make their finances more conscious. However, setting financial priorities can also help – although this may seem trivial to many, it can be important for many families to set out in advance which of certain sudden expenses are more important and which are less so, as this can be a point of adjustment in unexpected life situations and under stress.

Saving money through conscious shopping or energy saving can also contribute greatly to a more relaxed lifestyle, and can be used to cover larger unexpected expenses. Previous Provident research also found that 47% of those surveyed do not feel confident about financial products, which can further increase stress levels. To address this, it makes sense to improve your knowledge of financial products – from a verified source, either online or with the help of financial advisers – so that you can make more confident decisions about your finances, the statement says. "To reduce financial stress, it is important to budget in detail, identify unnecessary expenses and focus on basic needs," Senior Commercial and Customer Experience Manager at Provident Financial Ltd., László Sulyok said. He added that there is also a test on Provident's website to help people understand this. "It's worth finding out about the subsidies and discounts available, while setting smaller, achievable goals such as setting up an emergency fund or introducing automated savings. Consciously reducing everyday spending, such as saving energy or reviewing subscriptions, can also help create a stable financial situation."