There is absolutely no doubt that Financial and bodily health are inextricably linked. Simply put, one of the greatest stress inducers is financial worry and we all know that stress kills. You can sugar-coat it in any way you like and many researchers say financial burdens lead to increased blood pressure, but the ‘silent killer’’ high blood pressure, is almost always stress-induced.
So it is a vicious cycle. Financial worries = Stress = high blood pressure and many other health disorders too. One of the biggest problems with stress is that it invariably leads to bad lifestyle choices too in an attempt to cloud over it. These would be things like drug and alcohol abuse and another known killer – smoking.
Poor financial decisions lead to more stress.
Financial worries are invariably a result of poor financial decisions and ironically the stress of these financial worries leads to additional bad financial decisions. The vicious cycle not only continues but grows!
A classic example of this would be the cancellation of medical aid and compromising on medical health insurances and top-ups. So many people think this is a great area to cut the budget but the stressed individual is actually at higher medical risk, so unconsciously they are exacerbating the stress by now knowing that they may not be covered if things go wrong!
What is the solution?
Well, I think we have clearly made the point that financial stress is linked to health issues, but simply knowing this is not going to provide a solution, so how do we avoid this kind of stress? Here are just 3 essentials to look at…
Budget to include ‘cushions’
Just as you will be told by any good Business Coach if you want to start up a new business you need to have several months of capital put away for bad months. A personal budget is no different – without allowing for savings you are setting off on the wrong foot at the outset. From day one, always have that cushion.
Several savings plans offering very good dividends are also flexible and allow you to draw on them when you need to, so as you are saving you are also being cushioned. That brings peace of mind and alleviates stress.
Don’t compromise on protection
Remember part of a solid financial plan is protection. As we have had to reiterate so many times when the COVID-19 pandemic upset so many lives, the best laid financial plan cannot withstand the continual battering it will take if you have not allowed for medical, accident and income loss contingencies. Some things cannot be compromised and also have to be included in a budget for peace of mind.
Seek professional financial help
Many people reading this may say, ‘’well sure there are things I’ve done wrong, but it’s too late now, I’m already on the treadmill and living above my means – there’s no way I can save now’’.
You will be surprised at how many ways an astute Financial Advisor can assist with a recovery that could have you back on track and creating wealth again instead of stressing about it.
At Hereford Group, over the last 25 years, we have assisted enough people to achieve great wealth to know that where there is a will and great financial advice – there is a way. So talk to us today before making any more bad decisions that could just exacerbate that stress and keep you on the treadmill for a long as you can survive.
Remember it is not just about saving money to get rich – Financial peace of mind could save your life!