Now here’s some interesting fact, based on the survey report by the CFP board; nearly 9 in 10 of those surveyed have stress about their finances. With Debts and Expenses being the major causes of the most financial stress.
As of what would help most in reducing their financial stress, about three-quarters from the surveyed responded with these top answers.
- Having a financial plan,
- Having more knowledge in certain finance areas,
- Having more knowledge about their own finances,
- Having more time to focus on their finances.
Near to half of the respondents believes that their stress had hindered their ability to make correct financial decisions. They are doing things like, tightening their spending, to more frequent monitoring of financial accounts or simply avoiding the problem by taking their mind off it. None of this actually helps to solve their financial situation,
- Tightening one’s spending is not a financial plan,
- Frequent monitoring does not mean having more time to one’s finances,
- Taking mind off does not make one’s gain more knowledge in finances!
The undeniable fact is, financial stress had led to frustration and inaction, and that lead to financial procrastination. And when one’s procrastinate long enough in a financial decision, it will lead to financial phobia, a psychological condition when associated with money, and they might feel anxiety, bored or distracted when having to deal with money matters. Worst, thinking about financial matters produces physical responses such as rapid heartbeat, sweating and shaking!
And to emphasize this, as described from the book, Get Things Done By Robert Kelsey
“Money is a perennial concern for most people. Yet ‘financial phobia’ – as it’s become known – goes much deeper than mere money worries. It’s a disabling mental affliction that impacts both our ability to match our spending with our income – either overspending or, just as likely, assuming everything unaffordable – and our competences with respect to long-term planning.
And this is no obscure affliction. Research by Dr Brendan Burchell of Cambridge University claimed that one in five Britons suffers from financial phobia, which he described as a ‘mental condition that prevents people sorting out their personal finances’. “
Any way to overcome this?
Many will give you the same boring and dull solution, and the same old advice: put into practice the money management, with everything written down or in an electronic format: budgets, debts, savings, investing. But instead of looking at it negatively, start with a positive mindset on the money.
Always remember that our financial life is not about the past or even the present. It’s about the future! There’s nothing to stress about, as past financial errors should act only as lessons for future behavior. We should make organizing our finances a central element in planning our future goals.
As procrastination is a habit, a desire to overcome it is not enough; you will have to pair with faith, plans and persistence in order to DEFEAT it. Still, you have to break your first chain, that is, to GETTING STARTED NOW, it is your own money you’re dealing with after all. Once you have started to plan your financial, you will feel more confident in managing your finances, and making the correct decisions in your future financial life.
It isn't hard for you to get started, just go to the Vault of Resources HERE, and you will find the free resources that will aid to stress-proof your finances.