COPING WITH FINANCIAL STRESS

 

1)     COPING WITH FINANCIAL STRESS: -

Life is an ongoing adventure in which we continually strive to do our best. However, sometimes, even in our financial lives, there are occasions when the best-laid plans and well-planned actions fail to deliver the expected results, resulting in financial stress.

Financial stress is more common than we think in modern life. Many of us, from all over the world and all walks of life, are having to deal with financial stress and uncertainty. Whether it's loss of work, escalating debt, death of the breadwinner, or a combination of factors, the are many reasons for financial stress.

Financial problems can take a huge toll on our mental and physical health, relationships, and our overall quality of life. Feeling beaten down by money worries can adversely impact our sleep, self-esteem, and energy levels. It can even increase the risk of depression and anxiety. One may resort to unhealthy coping mechanisms, such as drinking, drug abuse or gambling to try to escape money worries. Financial stress can strike us hard and it can seem like life will never be the same again. Even the best of your relationships get tested, even broken.

 

2)     WHAT TO DO ? HOW To GO ABOUT IT?:-

Unfortunately, there is no magic pill, no quick plan to get out of the stress, else you would not be going through the same. Things can only get better - slowly, gradually and one step at a time. It is not just important to look at the bigger picture but you will also need to focus on the minute things with the mindset of an engineer or a doctor. The following discussion is a road map that can help you on different fronts, all ultimately leading you to take control of your finances and go into the 'green light' once again.

 

3)      THE MINDSET: -

Nothing is impossible. No matter if the odds are against you at the moment, nothing can beat faith that walks a mile every day, in the right direction. Getting into financial stress is nothing to be ashamed of as it is temporary and can happen to anyone, at any point in life. You don't have to give up and lose your confidence or self-respect or hope for a change. If you are suffering from stress, pressure, it is time that you let the steam out!

 

4) TALK & SHARE:-

*Start by talking to your financial advisor/distributor/accountant first. They would understand your situation and may offer some financial guidance. Next, talk to your family, especially your spouse and parents. Tell them about your situation and that you all need to work together in facing this challenge as one team. Your children, if they are old enough and are amongst the spenders, need to be made aware too. This can be a very valuable experience and lesson in their lives and will surely make them more conscious and respectful of money and what they have today. Listen to their worries and also get the conversation going. While doing all this, please also take extra effort to spend more quality time with your loved ones as this will only strengthen you more emotionally. Your family will appreciate your honesty and will pitch in with their own support and help.

5      5 DO THE MATH:-

One sure thing to do is to track the numbers. Take time out, every week, and keep a tab on broadly (a) how much money you have (b) how much income you are making and (c) how much money you are spending. In other words, start tracking income sources, tracking your cashflows, knowing your net worth, finding the gap between income and spending, making a budget and so on. With financial stress, budgeting becomes a huge challenge as the likely cash outflows/spendings outweigh the cash inflows/incomes. Here we need to identify the necessary and discretionary spendings and prioritize the same. Check out your past few months track - find patterns/habits which are hurting you and find expenses which can be reduced or avoided or delayed, at least for the time being.

 

6) ACTION PLAN:-

A] PLANNING THE WAY OUT:-

With your math worked out and a deeper understanding of your financial situation, you should now be able to explain your problems to even a child. Chalk out a road map of what needs to be done as part of the solution. A financial plan for the next year or so should be on your check-list too. Here is how all these should work:

·   Identify your problem areas and the extent of your problem.

·   Devise solutions or an action plan to get out of the mess.

·   Identify the steps you need to take - on fronts like spending, saving, debt management, insurance, liquidation/restructuring of investments, seeking credit, and so on.

·   Have a monthly budget and a financial plan ready to be implemented.

·   Implement your plans in a time bound manner.

·   Keep track of your plans religiously. 

B] DISCIPLINE:-

    Often, what we lack in intelligence, resources and luck, can be more than made up with discipline. People have broken mountains with just a hammer, discipline and patience for a fact. Stick to your plans - blindly for say next 6 months or a year and see the difference you would have made. Stay away from any unplanned, discretionary spending or from unnecessary shopping all this while. If required, avoid going to fancy restaurants, malls and even shopping apps on your mobile. Instead, take morning walks, go to the beach, learn to enjoy the finer things in life and have fun with family without having to buy it with money.

 C] STAY HEALTHY

    As discussed, stress can bring a lot of physical and health challenges and can push you into bad company and things which should be avoided. You do not want to open up a new front in this delicate situation. Instead, try having a good sleep, eat good food, practice meditation & yoga and try to be healthy. Try to incorporate exercises and physical activity to your daily routine. Physical activity boosts the production of your brain's feel-good neurotransmitters, called endorphins which help in stress relief, distract you from your worries and give you confidence.

 CONCLUSION:-

Nobody is immune to financial problems. Unforeseen financial crisis are like uninvited guests, all you can do is, be prepared. With the right road map and discipline, you can turn a potential tragedy into a minor setback. While you are doing it, also have gratitude for the things that you have and the people who are with you. It's life, both good and bad things happen. What's important is to keep walking, one step at a time. 

Happy Investing!!

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😊Hope you enjoyed or appreciated reading this one. Thank You, keep safe & Be Empowered... 😊
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