11/03/2021 0 Comments
Stressed About Debt? Tips to Overcome Financial Anxiety
Just under half of all Canadians admit that financial worries cause them more stress than work, relationships, or personal health.
Likely, that will come as no surprise to most of us, but this interesting statistic may: Most Canadians lack confidence in their own financial knowledge.
Trying to cope with a difficult financial situation while unsure of the best solution on how to resolve it, alongside the mental and emotional turmoil that this brings, can indeed be a heavy burden. However, you can overcome financial anxiety by following the advice of those who best understand the landscape.
The Effects of Financial Stress on Your Health
Money, or rather, the lack of money, and mental health are inextricably linked together. Countless studies highlight the frightening long-term effects of financial stress and include:
- Problems sleeping
- Chronic fatigue
- Low self-esteem
- Relationship issues
- Compulsive behaviour
- Impaired focus and reasoning
Sadly, this can become a self-perpetuating cycle of poor decisions, work absenteeism, increased medical bills, and job loss.
Getting out of this debilitating vortex is imperative.
Make Plan to Manage Your Debt
Debt management requires careful attention to both the actual problem and your emotional response to it. Making use of healthy coping mechanisms when dealing with financial stress places you in a far better position, physiologically and psychologically, to solve the problem.
Once you’re thinking clearly, you can start piecing together the right recipe for financial freedom.
As much as we’re probably anxious about making more money, that may not always be possible. There are, however, small steps that you can take to get closer to your financial goals.
→ Cut back on unnecessary expenses.
- Reduce phone and TV packages.
- Revise or reschedule travel plans.
- Cut down on fast-food and luxuries.
→Set a budget and stick to it.
- Factor in everything when you set your budget.
→Pay off higher interest rate debts first.
→Avoid impulse buys.
→Check your statements regularly and update your financial plan.
→If viable money-making opportunities exist, take them.
Understand your Situation
The three leading causes of financial stress are evenly split between monthly bills, retirement planning, and debt. Understanding where you are now and where you want to be is the critical jump-off point, even if it’s uncomfortable to think about.
- Take some time to note down your financial matters. Include details such as how much you owe, when payments are due, and what the interest rates are. Enter your income, your monthly expenses, and what you would like to save on for the future.
- A frank conversation with the family can help to relieve the burden of anxiety. Express your concerns and ask for their input and cooperation.
- Talk with others in your circle who may have experienced similar problems. They may have a solution that you hadn’t thought of.
Build an Emergency Fund
Warren Buffet wisely said, “Do not save what is left after spending; instead, spend what is left after saving.”
Building up a rainy-day savings fund is more than just a smart financial move. Not only does it offer us a buffer against the inevitable ebb and flow of the world economic situation, but it also gives us a psychological advantage. (Think of the financial anxiety COVID-19 has brought.)
When we are less stressed, we make smarter decisions.
It may not be possible to save if you're drowning in debt, but there may be options available to consolidate debts or manage your money a little differently.
Perhaps it’s time to talk to a financial advisor?
Get Professional Help
Asking for help is not a sign of weakness, and certainly not when it comes to financial matters. Some of the wealthiest and most successful people in the world have a team of financial advisors.
Statistics agree with this sentiment as we see that while 40 percent of Canadians suffer from financial anxiety, that number plummets to just 25 percent for those who choose to work with a financial planner.
You wouldn’t perform your own appendectomy if you were ill. Likewise, when in financial straits, it is the course of wisdom to call in a professional who can help you to take back control.
A good financial advisor can introduce you to techniques and vehicles that you may not be aware of and will serve as valuable aid.
Overcome Financial Anxiety. Start Today
To overcome financial anxiety and enjoy a fresh start, call in the professional assistance of Campbell Saunders.
We are a dedicated team of financial specialists who assist with debt help or credit repair, personal bankruptcy, and other financial challenges. Our licensed insolvency trustees serve our community in and around Vancouver and Richmond, offering supportive and thoughtful financial solutions.
Please book a free consultation with us and let us help to lift that dark cloud of financial stress.