Banish Financial Stress

Stress comes from so many areas of our lives. Whether it’s deadlines at work, health issues, arguments in the home, a death in the family, rush hour traffic, or trying to find the time to do everything that needs to be done in a day; it is everywhere. However, most research studies agree that the number one cause of stress for Americans is from finances. Working the daily grind (often at a job that is undesirable) in order to keep up with the bills that fill the mailbox week after week keeps many unhappy and hopeless. Others deal with the challenge of spousal and family conflicts over the control and spending of the household income. And then there are those who have hit rough times through the loss of their job or health problems that lead to unmanageable doctor and hospital bills. Although it is easy to dismiss financial tensions as another necessary evil in life, it does not have to be that way. In fact, it is imperative to get control over your financial situation for the sake of your physical, mental and emotional health.

Studies show that people who suffer from financial stress are more likely to develop other health problems as well. Constant stress and worry has been linked to the development of many physical conditions from headaches and insomnia to ulcers and even cancer. What many people don’t realize is that a vicious cycle occurs beginning with stress and invading all aspects of our lives.

Take the example of a young lady who lost her job during tough economic times. She had just bought a house and now faced increasing bills with no income to pay them. Although she had a few months of cash reserves in the bank, it quickly ran out while she struggled to start a business. A once avid fitness enthusiast, she began skipping gym time to work on building her business in order to bring in that much needed income. The reduction in exercise led to a decrease in her ability to sustain her energy throughout the day, and she soon noticed that she was catching every cold that went around. She began having trouble sleeping and slowly gaining weight which made her irritable and unhappy with the way her body looked causing her self-confidence to drop. In the back of her mind, she knew that she would feel better overall if she would just be more active again. Of course, after a restless night’s sleep and a 14+ hour day at work, the last thing she wanted to do was drag her expanding booty to the gym…and that downward spiral continued for about a year.

I am happy to report that she now has realized the necessity to have a balance in her life and has renewed her dedication to her health and wellness. She now tries (through her work and her writing) to help others relieve the stress of finances in their lives so they may improve their health, physically and emotionally. Yes, that young lady was me.

So whether you can relate to my situation or not, it’s easy to see how financial stress can expand into other areas of your life. I have heard too many stories of people giving up doing what they love to work overtime or get a second, or even third, job in order to make ends meet. This often leads to unhappiness, depression, and more stress as working extra takes away from time with family, friends, and even that precious time we have to ourselves. Sadder yet is the number of marriages that end citing finances as a major cause.

Hope is not lost though. Although stress is unavoidable in life, we can take steps to reduce it or at least the impact it has on our everyday lives. Some things in life we have no control over; finances do not fall into that category. You can change your financial picture so you can stop worrying and start focusing on the things in life that are more important than money. Everyone’s financial situation is different but there are a few general steps you can take to relieve your financial burden.

First, and most crucial, is to know where you stand today. Start by making a list of your debts including the monthly payments and interest rates you pay as well as any assets you own (your home, retirement accounts, savings and checking accounts, etc). Also track your expenses for at least a month or two so you know where your money is going. You may be surprised how easy it is to cut out some expenses when you realize where the drain is. Compare your monthly expenses to your income and try to trim away at any unnecessary spending behaviors to create a surplus income and an emergency reserve fund in the bank.

Next, create a plan. Figure out what you want your financial position to look like and draw out the steps you need to take to get there. It mat be as simple as cutting some expenses to pay off debt, or as complex as beginning an investment strategy, or anything in between such as funding your children’s education or securing your retirement. I cannot overstate the importance of having a clear plan; as an old proverb states, “He who fails to plan, plans to fail.”

Finally, implement your plan and stick to it. A plan is useless without taking the action required to achieve it. Unfortunately, things won’t change overnight. However, having a plan in place will do wonders for reducing the anxiety related to uncertain financial habits.

If your unsure how to get started or think your financial IQ isn’t adequate to help you, there are still options. Thanks to the wonder of the internet, there is a wealth of information to be found on every subject imaginable, including finances. There are also thousands of books written to help you understand why you’re in the position you are and how to get yourself back on the right track. Educate yourself. It is the most valuable thing you can do with your time. Another option is to seek the guidance of a debt counselor or financial advisor. Hiring a professional is often more costly than self-education but it saves time and creates a sense of security in knowing that someone is battling your stress for you. Make sure you are very selective when choosing a financial professional as they will be someone you put your trust in. They should always have your best interests in mind and the best of professionals will help to educate you along the path to your financial security.

So, don’t allow finances to control your life. Don’t become overwhelmed by the stress and allow it to negatively impact your life and your health. Realize that you can change your situation no matter how hopeless it may seem today. For more information on where to find help or advice visit www.financialfitnessaz.com or email info@financialfitnessaz.com.

“So many people spend their health gaining wealth, and then have to spend their wealth to regain their health.” -A.J. Reb Materi

“Wealth is the ability to fully experience life.” -Henry David Thoreau

This article was written and posted for educational purposes by Courtney Thompson, a financial advisor and business planner in Scottsdale, AZ. The author is not responsible for the opinions expressed in the open forum exchanges and does not guarantee the accuracy of third party comments.