How Financial Stress Affects you and how to Reduce it

Sadly Financial stress is a global widespread experience. Several polls have indicated that around 7 in 10 respondents are greatly stressed about money. On the other side of scale there is only 1 in 10 respondents that is not concerned about money. To make results even more concerning there is a consistent rise on the proportion of people that are very concerned about money.

That is why financial stress is a significant problem of our society. Not only that, we all know that stress is linked with health problems like depression, anxiety and sleep problems. Current weakness of economy, lower salaries, rising prices of food and gas, crisis on mortage and loan market, and the rising number of bank troubles put tremendous pressure on individuals and affects the level of their financial stress.

Financial stress can affect your health negatively in several ways

  1. Inapropriate coping behaviors – Instead of combating stress people tend to resort to unhealty lifestyle that helps them escape the reality. Some of this unhealty coping behaviors are drinking, smoking, overeating and many other unhealty habits.
  2. Sleeping problems - Financial stress negatively affects our sleeping and people unsuccessfuly coping with stress tend to have trouble sleeping. This can result in weakening the immune system, cognitive functioning, sleep deprivation, negative mood, and more.
  3. Depressing mood – Credit card debt, morgage problems can cause unhealthy emotions and cause depression. People can experience frustration, weakness, anxiety and hopelessness when confronted with their budget situation and the need for money to cover all the expenses.
  4. Less money for healthy living – With lower budget and high expenses people that are faced with financial stress tend to limit their needs for basic health care just to be able to afford basic necessities like food and clothing. If person neglects its health for a long time this can result in even more problems and higher level of stress.

What is the best way to deal with financial stress?

Financial stress must be dealt with efficiently and solutions must deliver effective and long-lasting results. Building a secure future can start by applying a little good sense, self-control and personal planning.
  • Find out where you stand and take control of your life – Ask yourself what your financial condition is. Is it under control or do you have a major money problem? Provide clear answers to all questions. An honest answer is the first step towards successfully solving your money crises.
  • Learn about implementing systems that can help – Find out about budgets, how to make them and how it helps. Try making a budget that suits your lifestyle. Remember to get rid of whimsical purchases and wishful luxuries first. This will help stop unwise spending. Try rising above a deficit budget. A good budget is one that takes care of all your necessities and leaves money to spare.
  • Develop a savings strategy - Financial experts encourage the practice of ‘pay yourself first’. Every month, on payday, allot an amount for your personal needs and promise yourself not to spend more than the amount allotted. Suppress your whims and fancies and kill temptation by exercising self-control.
  • Try and get out of debt - Stop using credit cards and instead, pay from the set budget. This will help you keep record of the amount spent and the amount left in account, and understand which other absolute necessities you can afford with the leftover money.
  • Develop an investment plan - Invest money in real estate, commercial property, mutual funds, stocks; look up bank savings-schemes that encourage recurrent or long-term deposits.
Talk to friends, colleagues or employ a financial advisor to help plan your investments and savings, and returns.
There is no doubt that financial stress is one of the leading causes of stress in our society. We all have to deal with finances and only few are lucky enough to be in the situation where financial stress has no impact. Find other interesting articles that will explain how to deal with financial stress and stress at work.