Are you feeling stressed these days? Maybe financial stress? you’re not alone. Some 55% of women, ages 30 to 55, who have minor children and household incomes of less than $60,000 a year, report “high” or overwhelming levels of financial stress. They are not experiencing high or extreme stress alone. So what is the cause of this tension?
due to financial stress
In his 2020 blog post, Canadian financial advisor, Jim Yeh highlights seven reasons in his blog post, 7 causes of financial stress:
- high debt level.
- low savings rate
- volatile stock market
- Real Estate Won’t Be Our Financial Savior
- Demographics means more fear
- The financial market is becoming increasingly complex
- no formal education on money
Let’s examine loans, savings and education further. Many people have the intention of paying off debt. Unfortunately, many of those intentions were overshadowed by short-term desires or disasters. After adding the debt, the earner may have lost his job or missed payments while solving other life issues.
Then ‘Vam o!’, the interest rate doubled or tripled overnight. An emergency fund seems like a great idea, but where will the money for that come from?
Start saving in your retirement plan
If you’re like 50% of Americans with workplace retirement plans, you’re not saving in it. If you are participating and your company offers a match, you may not be getting the perfect match. Maybe you’ve either taken out a loan on your 401(k) or liquidated it and incurred a 10% penalty if a short-term need arises.
There is no formal education about money in schools. It is hoped by some policymakers and voters that your parents had good financial saving and spending habits, were experts in understanding disability and life insurance, and actuarial retirement calculations. yes right!
Who is teaching you about money? Here lies the crux of the problem. There is very little formal financial education in the school system. Very little is offered in the workplace.
So many people have to learn from friends or family, but this creates many problems because many of them do not have the knowledge, ability or resources to teach others about money.
Financial stress is very common in our society and we need to do something about it. The starting point is a little knowledge but true success comes from action. This comes from taking control of your financial affairs and inculcating good financial habits.
a financial stress reliever
While financial education is great, it is time-consuming and does not in itself provide a calming voice for your financial stress if it comes from reading books. If you are getting your education from the media, they may have a conflict of interest and do not have the same standards as a financial professional registered with the SEC or FINRA.
Also, what financial education should you start with?
If you’re like most people you need an accountability coach and maybe someone to help you figure out how to pay off debt. A lack of a sense of control is a primary factor for employees reporting high or extreme financial stress. A Certified Financial Planner™ Professional (CFP.)) can help you gain control.
Look for a CFP Professional who has extensive knowledge in financial fundamentals such as setting up a cash reserve, developing a spending plan to address your debt.
If you’re one of those stressed-out moms, they can help you plan for college and choose a parent for your child should something happen to you. This designation is one of the few recognized designations highlighted on the FINRA website.
If you’re one of those stressed-out moms, they can help you plan for college and choose a parent for your child if something happens to you. This designation is one of the few recognized designations highlighted on the FINRA website.
a cfp to deal with financial stress
a cfp Professionals swear to put your financial interests ahead of theirs. all cfp Professionals are not clones, so you should spend some time learning about their business practices and yourself.
For example, some charge a uniform fee for all their services, some charge an hourly rate, and some charge a fee for the plan and the money you invest with them. find someone who is Sympathy And understands behavioral finance!
The opinions expressed in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.