Hello;
Financial stress can affect more than your wallet; it can have a ripple effect, impacting your health and relationships. The relationship between mental health and finances in some instances are dynamically linked.
Stress is an important reaction that helps protect you from danger. When experiencing stress, your body releases hormones, adrenaline and cortisol, it increases your blood pressure, heart rate, and the energy needed for you to fight or flee from danger or crisis scenarios. Prolonged stress, has been linked to an increased risk of heart attacks, diabetes, hair loss, and depression. When dealing with finances, it is important to approach and search for solutions with a calm and logical demeanour. 1 (Empire Life 2021)
Here are some ways to help alleviate stress when dealing with your finances.
Start communicating. Speaking with your partner, family, or close friends is an important step in reducing your financial stress levels at home. Expressing your hopes and fears about your financial situation can help you work together to find a solution to your financial woes. If speaking to your partner, family, or close friends doesn’t work, speak to a financial advisor, they can help support you in achieving your financial ambitions.
Create some breathing room. Reviewing your monthly statements and expenses are the first steps in understanding where your money is going. Analyzing your monthly expenses with your income and considering what expenditures can be trimmed can help create the breathing room you need to begin saving and minimizing your financial stresses. The more you live within your means, the greater financial freedom you will experience.
Take care of the “what if's.” Understanding your fixed expenses (i.e. rent, mortgage, food, insurance etc.) can help you understand how much money you need to maintain life’s essentials. Some economists suggest the ideal ‘emergency fund’ should amount to approximately six months’ worth of fixed expenses. If you are able to set aside money to save, this may help alleviate stress in instances of disability, illness, job loss, or economic downturn.
Set realistic and achievable goals. This is important to ensuring long-term financial security. Understanding your debts, how long it will take to pay them off, and what amount you want to have in savings can help you build a financial roadmap. Establishing goals can help to prioritize spending, balance your budget, plan for retirement, and pay off your debt.
Make it easy on yourself. There are programs and plans that make saving and paying off debt easier than tackling it on your own. Setting up automated payments or money transfers to savings accounts can help you keep your financial house in order. Even setting up reminders to alert you of upcoming bills, or when you are being paid, can help you identify your spending priorities.
Unload debt. Evaluate what debt you have and identify which carries the highest interest rate. Pay off high-interest debt first. Typically credit cards carry the highest interest rates. Develop a plan that targets reducing your credit card debt, as this will increase the funds available which can then be applied to lower interest bearing debt. If you have multiple credit cards, try consolidating the debt onto a low-interest credit card or loan. This will help to pay off the debt sooner, and free up funds for savings and investing.
Protect what matters most. Protecting your family and your assets against unforeseen events is critical to minimizing your financial stresses. Ensure you have insurance, an emergency fund, and savings to help protect you from life’s unexpected challenge
Please let us know if you require additional information.
Sincerely,
Mike Busby (20-Sep-2021)
THE COMMENTS CONTAINED HEREIN ARE A GENERAL DISCUSSION OF CERTAIN ISSUES INTENDED AS GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON AS TAX OR LEGAL ADVICE. PLEASE OBTAIN INDEPENDENT PROFESSIONAL ADVICE, IN THE CONTEXT OF YOUR PARTICULAR CIRCUMSTANCES. THIS ARTICLE WAS WRITTEN, DESIGNED AND PRODUCED BY MIKE BUSBY FOR THE BENEFIT OF MIKE BUSBY WHO IS A FINANACIAL ADVISOR FOR BRANDON LINDSAY INSURANCE AGENCIES, A TRADE NAME REGISTERED WITH INVESTIA FINANCIAL SERVICES INC., AND DOES NOT NECESSARILY REFLECT THE OPINION OF INVESTIA. THE INFORMATION CONTAINED IN THIS ARTICLE COMES FROM SOURCES WE BELIEVE RELIABLE, BUT WE CANNOT GUARANTEE ITS ACCURACY OR RELIABILTY. THE OPINIONS EXPRESSED ARE BASED ON AN ANALYSIS AND INTERPRETATION DATING FROM THE DATE OF PUBLICATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THEY DO NOT CONSTITUTE AN OFFER OR SOLICITATION TO BUY OR SELL ANY SECURITIES. MUTUAL FUNDS OFFERED THROUGH INVESTIA FINANCIAL SERVICES INC.
