Worry and anxiety are probably the most operative words that can be used as descriptive vocabularies of the term stress. Do you have fear or anxiety that darkens in any area of ​​your life? Do you have professional or work stress? Are you worried about your retirement? Are you anxious about what is being booked for next year? Or worries about your personal relationships with your friends, fiancé, or family? All these worries and anxieties have a major impact on the portfolio. Stress can strengthen your financial well-being or can lead to an adverse outcome in your financial well-being depending on the context of the dilemma.

Positive impacts of stress on your financial well-being

  • An anxious mind tends to think of possible solutions to the predicaments that appear. Ergo, when your account stresses you out with bills, the brain develops a scheme that will provide you with cheaper alternatives that reduce costs and therefore more savings. Survival instincts that start when you occupy concern can be a very effective reality check for your spending.

  • Stress provides you with the motivation to work harder and earn more money. When you worry about your life after retirement or how you will provide enough for your children, you will be encouraged and strive to generate more income to maintain their financial stability later on.

Negative impacts of stress on your financial well-being

  • Stress has a negative impact on your physical and mental well-being; the two key components of human productivity and therefore the ability to earn. Decreased mental and physical health culminates in taking sick days, lack of concentration, and therefore reduced efficiency, quantity, and quality of production, thereby harming your income. .

  • Psychological conditions attributed to stress require therapeutic intervention or pharmacological treatment or both treatments. The treatment of these mental ailments is costly and can feed irreparably into the portfolio.

  • Anxiety and other symptoms of depression also affect your level of productivity and your ability to earn an income. Depressive symptoms, such as low self-esteem and poor preparation and hygiene, reduce your confidence and interpersonal skills, leading to a reduction in your productivity and ability to reach your full potential and earn income from it.

  • Poor mental health prevents prudent decision-making that leads to impulsive spending and weak financial management. They are detrimental to your overall financial being, as they lead to increased costs, missed opportunities for more revenue, and a waste of dollars.

  • Stress can also lead to depressive tendencies, including behaviors that have depreciated themselves, especially excessive indulgence in addictive behaviors. Excessive indulgence entails a high expenditure on unnecessary facts, sometimes leading to an addiction that attracts more costs.

  • Your concern for the prevailing conditions shows a lack of satisfaction, hence the need for a better position or results. This stress comes from the need to adapt, you may be able to spend your earned money to be able to appeal to a particular class and this can lead to the accumulation of unhealthy debts. The desire to change the prevailing conditions can result in extravagant expenses that are unsustainable depending on your income level.