Money and Stress

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In a report by American Psychological Association published last year, financial concern is the leading cause of stress among Americans, regardless of the economic climate since 2007. Thus, it can be inferred that stress related to money issues have a significant negative impact on overall well-being. In line with this, nearly 1 in 5 American adults have delayed or denied their healthcare needs due to financial constraint.

Worse, 1/3 of the respondents with live-in partners or spouses stated that money is one of the major reasons of conflict. Major contributors to financial stress include high debt levels and lack of savings during emergency cases. Moreover, aside from the psychological stress that can be brought by financial insecurity, researchers from Columbia University and University of Virginia discovered that it is also directly correlated to physical pain.

Money and Stress

Ensuring Financial Stability

To avoid worrisome repercussions of financial stress, working towards financial independence is extremely significant. Young adults usually fall under the trap of buying expensive things such as cars, gadgets and luxury bags. However, being financially secure to enjoy life especially after retirement requires wise financial decisions. Being truly financially secure means having sufficient money for basic needs without having to work actively. Attaining this requires patience as it never happens overnight. Additionally, it takes sacrifice, determination, mental keenness for you have to commit to a detailed plan in doing so.

In order to achieve this, first, you have to invest on your knowledge, skills and valuable experiences that would be able to increase your net worth in the future. Keep in mind that there would be always rooms for economic advancement as long as you prove yourself and work hard enough. Continual upgrading of necessary skills in your chosen field would make you stand out among other colleagues. In this manner, you could also diversify your income streams. Most of the financially independent people have three to four income streams. For example, you can be an entrepreneur, consultant and a stakeholder at the same time. Some members of the academe also earn from book royalties.

Next, avoid consumer debts. Consumer debts is defined as money borrowed use to fund consumption rather than investment; one concrete example is credit card debts. Do not be pressured to keep up with the Joneses and the Kardashians. Instead, focus on growing your money first through various investments.

Importance of Saving to Invest

A lot would of people would say “I will start saving when I get rich,” but this mentality is problematic as it may never come unless you start saving consistently now. Include your savings as an integral part of your personal budget. Be wise in where you would put your savings. Instead of putting it in a normal bank account with a minimal interest, invest it in the stock market or treasury bonds. Diversify your investment to protect yourself from unexpected market climate. Other investments to consider are real estate, peer to peer lending, mutual funds and mixed investment bundles.

Destress and Pamper yourself Once in a while

The journey to becoming truly financially secure may feel depriving and stressful; but balance is key. Pamper yourself once in a while to destress. When you are in a calm and peaceful state, you are inclined to have wiser decisions. Moreover, it is also important not to compensate your overall well-being in your journey to becoming financially independent. Pampering yourself would also boost your self-confidence and self-efficacy thus making you a more productive citizen. Click here for full selection of spa services, treatments and relaxation packages.

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