Money woes cause stress, which in turn touches on all aspects of your life. It can invade your life and wreck it from your relationships to your health. Ignoring money woes puts your quality of life in jeopardy and directly affects your ability to perform.
And by perform, I mean from the bedroom to the boardroom.
A recent study by Northwestern Mutual found that money is the most common source of stress among U.S. adults.
In this article I will address 3 key areas where money woes can ruin your performance.
In The Bedroom
In the previously cited study, 4 in 10 respondents said money issues affected their relationships with their partners. In addition, Lauren Dummit, co-founder and clinical director of Triune Therapy Group in Los Angeles said financial woes can cause people to “become passive aggressive and withhold sex from their partners as an attempt to punish or to act out of their rage.”
Ouch. This, as you can imagine, is like a cancer to a relationship and will bring a marriage to the breaking point.
You can try things like getting more sleep, getting a healthy hobby, focusing on improving your health and talking it out with your partner, but until you address the underlying issue, your money problems, these are band-aid solutions that will only delay the inevitable.
In The Body
Stress is the leading cause of health problems. Maybe you’ve heard the expression, “Healthy mind, healthy body?”
Well, when you have constant worries about money, you have stress. And that stress can lead to digestive issues, hypertension and lack of energy.
According to an article on Healthline.com, stress can cause increased risk of hypertension, heart attack, insomnia, low sex drive (that one rears its head again!), high blood sugar and a weakened immune system, just to name a few!
So, again, if money problems are the #1 source of stress among U.S. adults, and stress can hurt your body that deeply, it behooves you to get your financial house in order.
In The Boardroom
It should not be surprising that a recent study by The Society for Human Resource Management revealed that a growing number of employees are experiencing financial hardship that impacts their job performance.
The study of HR Professionals cited the following as the top employee financial challenges:
- Medical expenses (42% of respondents)
- Overall lack of funds to cover personal expenses (41% of respondents)
- Saving for retirement (31% of respondents)
- Credit card debt (25% of respondents)
According to HR professionals, areas most affected when employees face financial challenges are:
- Overall employee stress (50%)
- Ability of employees to focus on work (47%)
- Overall employee productivity (29%)
- Employee absenteeism/presenteeism (26%)
- Employee engagement (15%)
With the previous examples alone that we’ve cited, it is hardly in doubt that financial problems can act like an anchor dragging down your personal career ambitions and overall company productivity.
What To Do?
What can you do, though, to counter these problems and address your financial issues?
First of all, know yourself. Understand what your money personality is and how it affects how you relate to money. Then you can make informed adjustments in your handling of money that will benefit you in the long run. Finding out where you fall in my 4 money personalities (Surfer, Soldier, 1st Responder, Hunter/Gatherer) can help you in that respect.
Second, know your money. Don’t hide your head in the sand expecting these serious problems to just go away. Sit down with pen and pad and list out all your assets and liabilities so you can get a clear picture of your net worth. Also, list out your income and your monthly living expenses so you can understand if you have enough coming in to meet your monthly needs.
Third, get on a written budget. When you spend by making it up as you go along, the end result is that you have too much month at the end of your money. Rather than spending your time being stressed out wondering where your money went, spend a little time planning where your money goes down to the last dollar. Then you can spend stress-free because you know beyond a shadow of a doubt that you have money in the bank to cover it.
Fourth, focus on piling up cash for emergencies. Get off the credit cards, put an emergency fund of at least $1,000 to start, then build that to 3-6 months’ worth of living expenses. You can do that by requesting a raise, working overtime, selling stuff you don’t need, getting a second job or starting a side hustle of your own.
Fifth, use credit wisely and in a targeted manner. Don’t use it because you saw some shoes or golf clubs on sale. Credit should be used for major expenses like buying a car, a home or paying for a major medical expense that you can’t otherwise cash flow. And put a written plan in place to pay down outstanding consumer credit quickly. When you use credit that way, you control it instead of credit controlling you!
So, in conclusion, stress hurts you in the bedroom, the body and the boardroom. You can change that by taking ownership of the problem and making changes in yourself and the way you handle money today. Then you can experience greater success in your health, relationships and career.
Always remember: Own it, Be it, Achieve it. Much success to you!
#Wealth #Financial #Literacy #Budget #Save #Invest #Career #Credit