Episode Description
Financial Stress is More Common Than You Think.
Here are five tell-tale signs that you’re struggling with money stress and How the state of one’s finances can negatively affect not only their mental health but their overall wellbeing.
1. Feeling a loss of control
2. Problem avoidance
3. Loss of self-esteem
4. Lower energy levels
5. Loss of concentration
With the average Canadian household owing $1.76 for every dollar made, it isn’t surprising that 50% of Canadians agree that their level of debt is causing them stress.
Loans, credit card payments, mortgages and simply trying to keep up with social media are just a few triggers of financial stress that impact Canadians of all income levels and age groups.
When you add in a high level of debt, an average rate of income and various financial responsibilities into the mix, financial stress only increases.
People that are struggling with their finances admit that their mental health is compromised because of it. Approximately 48% of Canadians say they’ve lost sleep because of financial worries (Stats Canada, 2019) and 40% of Canadians (Ipsos, 2018) agree that their level of debt is negatively affecting their mental health.
Having multiple bills to pay and loans hanging over your head can cause you to feel more stress and anxiety, impacting your mental health more negatively than without financial worries.
There are also situations where someone’s mental health may affect their financial stability. If someone is feeling depressed or anxious, there is a chance that they will turn to overspending to make themselves feel better. Personally, I know a lot of my friends spent a good chunk of money on the new Playstation 5, Nintendo Switch, New IPhone 12, as well as the recently revamped craze on Pokemon cards.
While there is nothing wrong with treating yourself every now and then, impulse buying or consistent “retail therapy” can negatively affect your savings, your debt levels and your credit score. If you are spending on things you cannot afford, you can also feel guilty towards your actions, as you may not only be lying to yourself about your financial situation but a spouse or partner as well. This, in turn, could affect not only your mental health but potentially your relationships.
If you are willing to put in the time and effort, there are a few simple ways to take control of your financial health, in turn improving your mental health as well.
If you’re having trouble with debt and cashflow, Use my budget or the Mint App to start the process of identifying opportunities to turn a negative cashflow into a positive one.
If you’re looking for savings strategies – consider “paying yourself first” where monthly contributions are deducted from your bank account on the same day as your pay cheques. Alternatively, use the Moka App to round up your purchases to save money on every transaction you make.
Once you’ve arrived at the point where you’re ready to invest, set up an account with Questrade or any online brokerage if you’re looking for a Do it Yourself solution and use my 13 investments for beginners as a starting point to build your first portfolio.
Lets Chat!
clement.chungcc@gmail.com