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 gets tested, even broken.
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.
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!
TALK AND 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.
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.
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.
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.
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.
Nobody is immune to financial problems.
Unforeseen financial crisis is 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.
