Wait, Personal Finance is Related to Stress?

Now that you have an overview of personal finance and why it is important from a financial perspective, you may be wondering, does it truly have any bearing on your well-being and stress levels? The answer is a resounding yes! Financial matters have a great influence on our stress levels and sense of security.

Why?

A lack of financial security and uncertainty about the future can lead to immense stress and feelings of helplessness. Consider the scenario of someone living paycheck to paycheck. The constant financial strain causes worry about possible financial emergencies like car repairs, debt payment difficulties, or not having savings. This worry can ultimately take a toll on one's mental and emotional well-being.

Consequences of Financial Stress

In 2023, a survey conducted by the National Financial Educators Council revealed that over one-third of Americans find their personal finances to be a significant source of stress, as depicted in the graph.

The burden of financial stress can appear through insomnia, headaches, and even increased blood pressure. In severe cases, financial stress is often the cause of mental health issues, including debilitating anxiety and depression, as individuals constantly worry about money and face overwhelming struggles. According to a survey done in the United States, “greater financial worries were associated with more psychological distress” (TheConversation.com), highlighting the significant impact financial stress can have on one's mental health.

How Can You Avoid Financial Stress?

The best way to avoid financial stress is to recognize the problem and create a financial plan around it. If you have a problem with impulse spending, try setting a strict budget and saving a portion of your income right away. This can help you better manage your finances. If you're worried about losing your money, try practicing relaxation techniques.

Therefore, purchasing this course was an excellent decision! VisitMind's personal finance course will educate you on all aspects of personal finance and give you strategies to work through most issues that may arise in the future, giving you a source to refer back to whenever you need it!

Further, educating yourself about finance is an excellent strategy to avoid stress related to personal finances. Avoiding financial stress involves more than just gaining knowledge. Active practice of healthy financial habits is also necessary. Regularly check and adjust your budget, be mindful of your spending habits, and stay financially responsible. To actively manage your financial well-being, apply the knowledge and skills you gain, like setting financial goals, creating a personal budget, and practicing smart spending (covered in later modules). Understanding and applying financial principles helps you navigate financial challenges and reduce stress.

Now, let's delve into the steps you can take to achieve this goal, starting with familiarizing yourself with financial terms!

Sources

How financial stress can affect your mental health and 5 things that can help

Financial Wellness