Money is a huge stressor in life. Practicing financial self care can help mitigate the negative effects of financial stress. By making plans and having set goals for your financial future, you can nurture a healthy relationship with money. Prolonged financial hardship can lead to serious health consequences so taking control of the situation is necessary for your overall self care.
Cause & Effect
At some point in our lives, we all experience some sort of financial stressor. Paying for rent or a mortgage, lack of stable work, student loans, credit card debt, car troubles, or a medical emergency, they are all factors that can trigger financial stress. Consumerism has also contributed greatly to feeling like you need more. Money can’t buy happiness. Seeing others flaunt the materiality of their lives often makes people that don’t have those things feel inadequate and envious. As a result, some of those individuals will spend more money to feel better. The cycle continues, and in fact is exacerbated. From fast fashion to luxury vehicles, spending can easily get out of control. By identifying your reasons for your spending, you can work on self care areas that can help you feel better about yourself without the financial cost.
Financial stress leads to anxiety, a possible fear of scarcity, and it can be accompanied by a physiological response too. Your mood can be altered, and decision making ability becomes compromised. Self-esteem can plummet, and shame can set in. Sleep is often impacted, and in turn the immune system gets affected. If the situation is prolonged, the health consequences can include heart disease, high blood pressure and an increased risk of suffering a stroke. There is also anecdotal research that demonstrates a link between financial problems and mental health problems such as anxiety and depression.
Financial Planning
Where are you now
In order to mitigate the stress that finances can have on us, there are some basic steps you can take to build a healthy relationship with money. The first step is to look at your situation and decide what you would like it to be in future. What are your basic financial needs to live? What are your spending habits? Is your current financial situation bad? You can’t have a great financial future if you don’t stabilize the present.
Planning is a big part of getting your finances in order. Once you have your current spending figured out, make a budget. Is all of it necessary? Can you make simple changes, like taking transit to work to save on gas, parking, and vehicle maintenance? Have you ever made a budget for your holiday spending? Do you keep paying extra fees for late bill payments? Use a calendar to remind yourself of due dates and eliminate the need and stress related to remembering. Pay more than the minimum monthly payment on your credit cards and/or lines of credit. This helps you to start reducing the principle amount owing. Not being able to make a dent in your repayments leads to greater debt long term.
Looking into the future
Learn to put a little money aside for emergencies and if possible, for your retirement. By having some money put aside, you are better prepared to deal with unexpected financial burdens such as a job loss, or a major expense that requires immediate attention. Too many external factors can impact your finances, so having a nest egg is imperative.
Financial planning can be challenging and there are services available to support you if you are struggling. An expert can help you identify your financial priorities, as well as set a budget. Lifestyle changes can be hard, so speaking with friends and family can also help you achieve your financial goals. We are taught not to talk about money, but we actually should be to make better choices.
Money problems can also bring with them a whole host of emotions and physical ailments. So the sooner you start planning, the sooner you can take control of your life. There is a real connection between low income and poor health, and typically, this results in a shorter life expectancy. Much of this has to do with ensuring the basic needs for nourishing food and adequate shelter. These should be your financial priorities when you start planning.
What does financial freedom look like for you?
Taking control of your financial situation is a great way to take care of your overall health. It releases valuable head space and reduces the overall stress you feel day-to-day. People often feel embarrassed about their financial hardships, but it is normal to have a slip, or to need to learn how to become better at managing our money. And remember that no matter how much money you make, if you don’t know how to manage your money, you will inevitably face financial challenges. Prioritize your financial responsibility to mitigate future stress. Like every other self care tool, we should often revisit how we manage our financial well being and update as needed.
IMAGE CREDIT: Unsplash | Towfiqu Barbhuiya.