• Sunday, June 23, 2024
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BusinessDay

Financial stability and the role it plays in your personal health

financial-stability

Tomiwa was incredibly broke and depressed. He knew how to code but found it difficult to get a job. However, instead of moping around, he decided to volunteer as a software engineering intern for a company and due to his outstanding performance in the role, the company offered him a job. Not only was he able to meet his needs after he got the job, but he also felt extremely confident and got more respect from others because he was no longer seen as a liability.

Money plays a large role in wellness. People say that money does not buy happiness and while that is true, money can definitely bring a level of ease to your life. Having financial stability plays a major role in your wellness.

IMPORTANCE OF FINANCIAL STABILITY IN LIFE

Financial stability doesn’t automatically mean a stress-free life or one without problems however, financial stability can definitely bring a certain amount of ease to your life. Below are some reasons why financial stability is important.

1. Financial Stability Buys Respect

Whether or not we agree, the common tendency is to avoid people that are always asking for money or stuff or narrating their problems due to lack of money.

Now assume you are the person asking for money or things and complaining about hardships. Would you get any respect from people including close relatives? Definitely not. The modern society respects only people that are financially stable.

2. It reduces stress

A financially unstable person can suffer from aches, pains, frequent fevers and infections. Financial stability therefore ensures you don’t fall victim to money related stress and mental disorders. Money affords you healthy food and if necessary medical care.

3. Old Age & Retirement

A financially stable person or couple is able to invest in schemes and plans to amass wealth for those golden years when regular income ceases. Hence, they can lead happier life as retirees.

Read also: Fidson Healthcare’s financials in five charts

HOW TO BE MORE FINANCIALLY STABLE
While financial stability brings a host of great benefits, it requires hard work, motivation, and intentionality. Here are some tips to increase your financial health:

· Create a budget. You can search online for templates or create one that suits your preferences and lifestyle. When making a budget, it is important to remember to set realistic goals, separate your needs from your wants.

· Make a plan to reduce and eventually eliminate all debt. There are some great online resources that can help, ranging from example payment plans to debt tracking sheets. Start by tackling your smallest debt first and work up to the larger amounts.

· In addition to addressing old debt, avoid acquiring any new debt. Most forms of consumer debt are easily obtained but have both outright and hidden fees, as well as extremely high interest rates. It may be tempting, but it’s important to stay focused on your financial priorities.

· Start saving – even if it’s just a little. Having even a small savings can help in times when new debt seems like the only option, and you will be less likely to take out quick loans. Pay yourself first in the form of putting small amounts of money away. It will also help reduce stress because you will know that you have a small buffer in the case of emergency.

· Have a safety net in place. In addition to a savings account, it is important to have a plan for life changes or crises. Planning for the unforeseeable future can help both you and your loved ones have peace of mind.

DISADVANTAGES

· Those who are experiencing financial stress are more likely to engage in unhealthy coping behaviours. These can include drinking, smoking, over-eating, or other unhealthy mechanisms in response to their anxiety. Unfortunately, this leads to more stress, which is associated with even more health risks.

· Less sleep. When individuals are under financial stress, they often experience trouble sleeping (or working long hours) which can add up to a sleep deficit over time. Not only does this cause chronic fatigue, but it impairs immune functioning and cognitive abilities, while also causing additional moodiness.

· Unhealthy emotions: Financial strain, and especially debt, can cause unhealthy emotions that can take a tremendous toll on your health. There is often anxiety, frustration, and a sense of hopelessness that comes along with increasing debt and the inability to even pay the interest.