Do you:
- Impulsively spend money and later regret it?
- Feel overwhelmed when you look at your bank balance?
- Avoid answering phone calls or opening letters from your creditors?
- Feel embarrassed of your financial situation but struggle to ask for help?
These are signs that your money habits could be haunting you.
If you think your bad money habits could be affecting your mental well-being, you’re not wrong!
Money worries are one of the biggest stressors in modern life. According to a survey conducted by Financial Stress Index, by FP Canada™Nearly half (48%) of Canadians say they have lost sleep because of financial worries.
Ways Your Financial Situation Can Affect Your Mental Health
Money problems and mental health can be intricately linked.
Financial concerns can be caused by:
- Losing a job or being furloughed
- Having large consumer debts that can’t be paid
- Worrying about expected financial pressures
Some signs that financial stress may be affecting your mental health include feeling irritable, being nervous/anxious, having a lack of interest/motivation, feeling fatigued, feeling overwhelmed and being depressed/sad. While these may appear as normal reactions, they can actually have a serious impact on your overall health and financial stress can also lead to more serious health issues such as heart disease and high blood pressure.
Being concerned about your finances can bring awareness to your current situation and keep your finances in control. But it’s important to recognize the point at which worrying about your finances progresses into stress. Because stress is an inherent physiologic response to a threat. .
Quick Tips to Boost Your Financial and Overall Well-being
Bad money habits are difficult to steer out of, but with a bit of dedication and discipline, you can replace them with good ones.
To boost your financial well-being, here are a few things you can do:
- Your credit card is not free money – Stop swiping your card and spamming the “buy” button online just to impress your friends with the latest fad. Your friends may be juggling their own financial concerns and may not notice your purchases.
- Automate your savings – Automatically have a portion of your paycheck sent to your savings account. You can use the savings to create an emergency fund, put a down payment on a home, or invest in the market.
- Draw up (and stick to) a personal budget – You may need to limit your spending for a while, and an audit of your finances will help you see areas you can cut back on. Discretionary spending can include recurring subscriptions, eating out, etc.
- Contact your creditors if you owe them money – Payment history carries a considerable weight on your credit score. If you’re overwhelmed with credit card debt, even though you may be a high income earner and are capable of making the payments, you may need to explore why you have a negative relationship with money that is causing you to self sabotage. Contact your creditors to make payment arrangements.
- Eliminate impulse spending – Ever seen something in a store or online that you just had to buy? Impulsive buying can wreak havoc on your budget. To break this habit, find ways to delay purchases and delete your credit card information online.
- Don’t ignore retirement planning – The earlier you start saving for retirement, the more time your nest egg has to grow and benefit from the benefit of compound interest.
Our financial habits may have a positive or negative impact on your financial well being and that’s why it’s important to be intentional with our spending habits and financial goals. If you do feel stuck, that doesn’t mean you have to suffer in silence. A good way to take control of your financial situation is to seek help from a financial professional.
References
https://www.financialplanningforcanadians.ca/articles/2020-financial-stress-index
https://www.healthstatus.com/health_blog/money-fit/financial-stress/
https://www.cambridge-credit.org/financial-stress-and-your-health.html
Recent Comments