financialtreat – will explain about causes and impacts of Financial Problems You Need to Know which you will get in the following article. let’s look at this article carefully!
When entering a fairly mature age, finances become quite crucial and of course must be carefully thought out because it is related to the future later. For those of you who already have a fixed income, of course, sometimes you will experience financial problems.
Not to mention if you are already a family, of course the financial problems that occur can be more complex because of the many needs and living costs that must be met. The financial problems faced are not only due to improper financial management.
Causes and Impacts of Financial Problems You Need to Know
In fact, many people are sometimes involved in financial problems due to trivial causes. These causes are sometimes not realized by most people, making their financial condition even more messy. To prevent financial conditions from becoming more problematic, the following causes should be recognized and known further. What are they? Here’s the breakdown.
1. Consumptive Lifestyle
It is widely known that a consumptive lifestyle can have a negative impact on financial conditions. What is meant by a consumptive lifestyle here is to spend money on things that are not very important.
This is often done by many people, even done without realizing it. So, don’t blame it if suddenly your salary can run out in the middle of the month. Although the salary you get is quite large, if this consumptive behavior is not controlle, you will still feel that you are constantly short of money.
2. Financial Problems: Tends to Spend Money Just for Fun
While still young, it is usually always tempte to always have fun and spend money. However you think if you have to enjoy the hard work that has been done by spending money.
This is actually naturally the case. However, if you want a good and healthy financial condition, try to restrain yourself. Start prioritizing the basic things that must be met first.
3. No Allocation for Emergency Funds
Many people do not think how important an emergency fund is. In fact, the existence of an emergency fund can save your condition which is in urgency and needs money as soon as possible. For this reason, the salary you just got should not be spent immediately. Make it a habit to set aside some money consistently for your emergency fund.
4. No Allocation to Save
Saving is a good habit, even mandatory. Not only important for current needs, but also other needs that will be met in the future, such as houses, vehicles, education, to vacations. You can take advantage of the savings you have. Make a regular schedule to save every time you receive a salary.
5. Don’t Have a Clear Budget Arrangement
It’s quite difficult to get use to the budget if you’ve never previously made a budget. However, with a clear spending budget, you can minimize the risk of experiencing a messy financial condition.
You can make a clear and detaile budget. Starting from the short term to the long term. That way, you can reduce your every expense
6. Financial Problems: Absence of Financial Goals
Having financial goals is very important so that you can have a target for your finances. This is what millennials often forget. Having a lot of money in the absence of clear financial goals will cause expenses to get out of hand. For this reason, start designing your financial goals and prioritize your main needs first.
7. Taking On Debt
Debt is not a good habit if it is continue constantly. Especially if your goal in debt is to fulfill a desire alone. However, if you already have a pile of debt, make a plan to pay it off immediately.
Don’t let those debts pile up for too long. After repayment, try not to go into debt, unless it is use for productive and profitable things. Be Aware of Everything That Causes Financial Problems.
Sometimes many people have financial problems because they don’t know the cause. For this reason, first be aware of the causes that can trigger the emergence of financial problems.
After that, make a strategy that you can do to avoid it. Don’t let it be just because of a trivial matter, all your main targets and needs become abandone.
Bad Impact on the Body If It Does Not Face Financial Problems
The Emergence of Fight Response and Flight Response
When we are face with a threat or suppression, the amygdala (part of the chamber system inside the human brain) will cause stress hormones, namely adrenaline and cortisol. The hormone will then cause a fight response (perform an action when under threat) or flight response (avoiding or running away from the threat).
You Make Bad Decisions, Even Though You Know
When you experience stress or pressure from financial conditions, your ability to be able to choose good things will be impaire, even if you are a typical rational person.
When under pressure, blood flow and electrical activity in the brain will decrease in the frontal lobe as well as the prefrontal cortex and will increase in the amygdala (part of the chamber system inside the human brain)
The Emergence of Anxiety, Depression and Other Mental Health Problems
Being confuse in the face of financial problems can cause anxiety. Given that money is an indispensable part of our lives, constant worry will lead to more serious psychological symptoms.
For example being burdene by large amounts of debt, it has been shown to have a huge impact on mental health. Even in some serious cases, directing the mind to self-harm.
Chronic Stress Causes Serious Physical Illness (Financial Problems)
Carle Marie Manly reiterate that chronic stress can cause more serious damage. When the level of adrenaline and cortisol continues to increase, physical damage will occur. As a result, many of those who suffer from chronic stress have greater rates of heart disease, diabetes, chronic sleep problems and other health problems.
Risk of Drug Abuse
It turns out that experiencing chronic stress, especially in financial problems, can result in increasing addiction to certain drugs, you know. For example, one of the studies found a direct link between increase financial stress and alcoholism and smoking, especially among adult men. High levels of stress have also been found to be predictors of continue use of opiates, such as heroin.
Read more financial Advisor:
Don’t Let FinancialProblems Interfere with Your Health
To prevent the above conditions from happening when you are struggling financially, you can take several effective steps that you can do, such as:
- Do meditation or therapy with an expert: If you are experiencing a decline in mental health due to financial problems and stress, immediately visit a trusted therapist.
- You can also do meditation by looking for a dim and quiet place. Start by sitting or lying in the most comfortable position and let your mind feel calm.
- Next close your eyes and focus on your breathing. Do this for about 10 minutes.
- If 10 minutes pass, open your eyes slowly. Focusing on breathing will certainly refresh your body and mind.
- Make a plan and a way out: After the mind and body have calmed down, the next step you have to apply is to make a plan and a solution to the problems you face.
- You can ask financial experts for help to get good and rational financial planning or management.
- One of the wise steps to manage your finances is to do investing activities.
- It is possible, if you currently have financial problems, such as going into debt because you prefer to spend money on unnecessary expenses.
- Don’t let financial problems worsen your current situation. Face the problem calmly and remember that the way out will always be there.
- The more important thing is to evaluate the mistakes made in the past and promise not to repeat the wrong actions.
- Don’t forget to always evaluate the mistakes made in the past and commit yourself not to repeat the mistakes that will lead you to actions that will be self-defeating.
Entangled in financial matters, it turned out not to be a trivial matter. Unmitigated, because the financial burden is very heavy, many commit suicide to solve their problems. And some of them experience prolonged stress. Don’t let that happen to you. Hopefully, this information can be helpful and useful.