Does Peace of Mind Depend on Financial Stability?
A survey was conducted in India in 2021 about the leading reasons for stress. A. Minhas published the study and about 22% of respondents reported money woes as the main factor affecting their stress levels.
According to a more recent study conducted by the Deccan Herald, about 17% of Indians’ main reason for stress was financial instability.
In both cases, financial instability was the leading cause of stress among Indians. Financial factors affect your peace of mind more than any other.
In this blog, let us try to learn more about financial stress and how to combat it to achieve better mental health.
Financial Stress and its Effects on Mental Health
There are specific symptoms that might help you understand that your mental and general health is being affected due to your finances.
Common Reasons for Financial Stress
The reason for financial troubles can vary from person to person. Often it is not one reason but a mix of many that makes your finances unstable.
Managing Your Money and Attaining Peace of Mind
After understanding the facets of financial stress, it is time to learn how to combat it.
Here is how you can manage your finances and reclaim your peace of mind –
1. Create an Emergency Fund
Once you have a stable income, it is a good idea to create your emergency fund. Your emergency fund should have a minimum of 6 months’ worth of expenses. You can even build one to last you a year.
This will prepare you for situations wherein you lose your regular income and it takes you some time to get another one.
2. Inculcate Healthy Savings Habits
Spending till the last penny is never a good thing when you have limited earnings. Make it a habit to save as much as you can every month, and spend only on necessary items.
Dining out, ordering food, shopping, etc. are things that can be easily minimized and the funds can be kept safe for emergencies.
3. Invest in Your Retirement
The sooner you start investing in your retirement, the better it is. You will get a longer span of time to build a good retirement fund.
Mix up your investment portfolio with both high and low-risk investments. This way you will be able to make your money work for you without incurring high risks and losing all of it.
4. Pay off Your Debts
Keeping debts till the last moment affects your financial health drastically. If you have any loans, pay them off as soon as you can. Try to minimize your spending and focus on clearing your dues first.
5. Don’t Spend Money that You Don’t Have
Credit cards offer many discounts and also help build your credit score. But be mindful when you use them, and don’t spend more than you can pay off in a month. Spending funds that you don’t have can wreck your financial health and get you stuck in a debt trap.
In Conclusion
Financial emergencies cannot be avoided, and getting out of it might seem impossible. Even though you might feel hopeless, have patience. Taking baby steps and meticulous planning can surely get you out of any financial trouble.
Don’t hesitate to ask for help if you need it; not only in the form of loans but you may ask your relatives or friends for help. You can also try to get a part-time job or start a small business to earn an extra income.
Apart from all of this, don’t ignore self-care when you are in a rut. Especially, given the current loss of the Indian team in the ICC Cricket World Cup, 2023, all of us can do with some cheering up. After all, you need good mental health to deal with whatever comes your way.
In case you are struggling with any kind of financial trouble, you can always opt for an instant personal loan. moneyview offers versatile loans that can be used for a variety of purposes. Check if you are eligible for a loan in just 2 minutes by visiting the moneyview website.