Money causes stress… do you know why?
Further to my recent blog “Counting sheep at night? What causes your sleep? “, I thought I would expand further on why money causes stress.
I believe money issues are the number one worry of Britons. 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 also causes stress because of the ancillary consequences that can come from financial issues. Many people who are stressed turn to unhealthy habits. In the Guardian survey, 21 percent of respondents said they turn to alcohol to cope with financial stress. Thirteen percent 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 dependants may feel inadequate by not being able to provide for their family 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.
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 the 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 the 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 issues can be unhealthy and stress-inducing. However, you don’t have to face them 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.
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Mike Coady is an award-winning financial expert and a well-known leader in the financial industry.
Mike is qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), and a Fellow of the Institute of Directors (FIoD).
Blog published by Mike Coady