64% of Americans say that money is a major source of stress in their lives, and 52% say they have experienced negative financial impacts due to the Corona pandemic, according to the American Psychological Association.
In a report published by the American "Health Line" site, writer Cathy Cassata says that achieving financial balance in times of crisis is necessary, but it needs a lot of effort to overcome feelings of anxiety and fear and deal with the financial situation rationally.
"When I'm stressed about my financial situation, or I'm worried about losing my job or getting drowned in debt, that puts additional pressure, and if I have psychological problems, the frequency of those fears increases," said Nathan Astle, a psychotherapist and member of the American Financial Therapy Association.
According to his opinion, psychological problems directly affect the disposition of financial resources, as some people may resort to spending more and not paying attention to the budget in times of crisis.
Estel points to the importance of financial health in such circumstances, that is, balanced spending and budgetary control. According to him, financial health consists of 3 elements:
Financial knowledge: It is good knowledge of your financial situation, such as knowing your credit balance.
Financial behavior: It includes making decisions about how to spend and save money.
Subjective feelings about money: These include what you feel or think about spending the money.
According to financial expert Christina Kleinotec, vice president and director of brands and strategic partnerships at Laurel Road, financial wellness is not about wealth, but rather how you deal with your money and how to use that money to achieve your goals in life. Getting a deep understanding of your financial situation Managing your resources to achieve your goals in a way that reduces stress is the best way to achieve financial health.
Achieving financial health may take time, trials and mistakes, but the goal can be reached in the end, and here are some tips to achieve financial health even in difficult times.
Give yourself a fresh start and redraw your financial plan (Shutterstock)
Reset everything
According to a study by Laurel Rudd, 52% of American millennials are not satisfied with how they handle their finances in 2020.
Clinique says, "With the entry into a new year, give yourself a fresh start and redraw your financial plan. Past spending habits are in the past, now you need to look forward."
Find out your financial beliefs
To understand why you are treating your money in the current way, Astel recommends taking what is known as the "financial Klontz test". It consists of about 50 questions. The test helps reveal your unconscious thoughts, behaviors and beliefs about money that have their roots in childhood.
"The test will place you in one of 4 groups, one of which is the belief that money is a bad thing. If you are in this group, you may perform subconscious behaviors that spoil your financial success because you do not want to be greedy," Astel adds.
Practice mindfulness exercises
Practicing mindfulness when making financial decisions may make you more in control of your behavior, so before you dispose of your money or think about the next step, Astel recommends doing some meditation exercises.
Set your budget
Clinique suggests using the “20/30/50” rule to determine your budget:
50% of the budget is for fixed expenses, such as rent, school fees, and car expenses.
30% of the budget for variable expenses, such as shopping and entertainment expenses.
20% of the budget is for future financial plans, such as an allocation for contingencies and savings for retirement.
Financial behavior includes making decisions about how to spend and save money (Shutterstock)
Create realistic savings plans
Clinique suggests setting a percentage of income to save, and says in this regard, "For those who have lost their jobs at the moment, do not blame yourselves if you deplete your savings, that is basically the point of their existence."
"If you are worried about running out of savings, consider a plan to re-save as soon as you get a job," she says.
Don't worry about debt
Clinique asserts that paying debts immediately under the current circumstances is unrealistic, and therefore, according to its opinion, it must start by setting a budget and saving a portion of money in order to deal with debt well.
Get support from others
Discussing financial problems with others is a good way to achieve financial health. If you suffer from financial problems and need to know more about the way to behave with your money or how to make good decisions, not communicating with others will make you feel lonely and make the situation more difficult, as well as trying to solve Crisis on your own is difficult, so there are ways to help build that network that may help you improve your situation.