Money causes stress… do you know why?
Money causes stress. It’s a fact of life. I believe money issues are the number one worry of expats. Why is money such a major source of stress? Experts say there are multiple reasons. One is the way money is viewed in society. For many people, wealth equates to success. Those who face money issues or are dealing with debt may feel insufficient or even worthless because they have few assets to show for their work.
Money causes stress also because of the ancillary consequences that can come from financial issues. Many people who are stressed turn to unhealthy habits. In the recent survey, 21 per cent of respondents said they turn to alcohol to cope with financial stress. Thirteen per cent said they start smoking. While those habits may lead to a temporary escape, they often contribute to more long-term stress.
Individuals dealing with financial issues may also cut corners on healthy living by eating lower-quality food and exercising less. They could start working more to deal with the financial shortfalls, and that extra work may lead to a consistent loss of sleep.
Finally, financial issues have a way of infecting our personal relationships. People who have dependents may feel inadequate by not being able to provide for their families in the way they wish. Financial issues are often a common cause of divorce because of the anxiety and frustration that they can bring into the relationship.
Money causes stress-induced habits
There are numerous ways to handle money-induced stress. One is to maintain healthy habits. Getting a full night of sleep, eating healthy, and exercising regularly are three of the most effective methods for managing stress.
Those methods may handle the symptoms of financial issues. However, a permanent solution requires getting to the root of the issue, which is where a financial adviser can add real value and benefit to individuals. The financial hardship may be a temporary setback caused by a job loss or a business failure. For many people, though, financial hardship is the result of years of poor financial habits.
Getting out of financial difficulty often requires changing those poor habits. That could mean using a budget, saving regularly, and cutting up the credit cards. Those actions can be hard to take without proper support. An experienced and knowledgeable financial advisor can help you design a plan to escape financial difficulty and take control of your financial future.
One of the first steps in meeting the financial issues head-on is identifying exactly where the issue lies. Many people avoid this step because they don’t want to know exactly how bad the situation is. However, it’s impossible to deal with the issue without understanding it completely. By cataloguing debt or building a budget, you can begin to understand the depths of your financial problems.
Once the problem is fully understood, you and your adviser can design action items to resolve the situation. The adviser may be able to design a debt repayment plan or an automatic savings plan. If your issues are the result of investment losses, the adviser could review your portfolio and possibly adjust it to a more appropriate allocation.
Money causes stress if not addressed properly. However, you don’t have to face money issues alone. Speak with a Financial Adviser to see what steps you can take to resolve the situation and then you’ll be able to work towards implementing a sound financial strategy to help you achieve your medium and long-term financial goals.
About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
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Blog published by Mike Coady.