The saying that money cannot buy happiness is certainly true. Some of the least developed countries around the world have a reported higher happiness index than in more developed locations in North America, an area which tends to be synonymous with material wealth. That being said, money, for most of us, facilitates our day to day life to an enormous degree and that knowledge can cause a lot of stress. Below are five ways to help you reduce that financial stress.

Create a spending report.

We do so many things in a day, go so many places and pay so many bills that if often becomes difficult to discern exactly where our money is going. The cure for this is to create an expenditure report. There are even applications for your phone that you can download for free which can be linked to your credit or debit card and tell you exactly where and when you are spending money.

Rank your monthly purchases.

This means creating a list which places your monthly purchases in terms of importance from top to bottom. Fixed commitment costs, like phone bills, energy bills, car payments and mortgage are those which you have to pay, bottom line. Everything else can go under those, from greatest to least importance. This will help you eliminate any unnecessary expenditures.

Create an emergency fund.

Setting aside a little money every time you are paid and not touching it ensures that you have a failsafe for unforeseen expenses such as your car breaking down or a dental emergency. Massive expenditures can come out of nowhere. Having money set aside for when disaster strikes is invaluable to your peace of mind.

Speak openly with your family about money.

If you are married, or living with a significant other and your finances are intertwined, being honest with one another about where you stand financially and what you can and can’t afford to do will mean that you each are able to tailor your expectations and minimize the risk of finances causing conflict between the two of you.

While money doesn’t buy happiness, having control over your money certainly can eliminate a lot of stress, and isn’t a stress-free life a happy one? If you have found yourself worrying about money lately and aren’t sure what to do about it, keep the above five tips for reducing financial stress and remember you can always seek the assistance of a licenced insolvency trustee to figure out your debt repayment options so you don’t let your finances get the best of you.