On many occasions we have heard very encouraging expressions such as:
- Starting tomorrow I will begin to save more.
- I am convinced that I should not spend so much.
- I’ll start saving for retirement.
- I will pay all credit cards debts.
And so many others like them, which represent a good start to bring order to financial matters. People tend to promise things for themselves, but sometimes something comes up that requires that financial goals to be relegated to the background.
Just like there is a large group of people who have good intentions to straighten their economy and set their financial goals, there are others who do not even speak about these issues, much less take the minimum actions to enjoy a better financial situation . These people are not aware of the need to set goals, they believe that the world of finance is not for them or, worse, have mental laziness to think about such issues even if their financial health is critical. These people are genuinely “financially lazy”.
By their way of thinking and their attitude towards money and finance, financially lazy people own certain qualities that prevents them from achieving higher levels of welfare and economic conditions. I invite you to review your financial attitude in search of some of these signs:
- You do not have sense of urgency. If you feel that there is no reason to worry now by financial issues, or your favorite phrase is “someday” (someday we will think of retirement, someday I’ll have more money, someday I’ll be able to start saving, someday I’ll have my own house, someday we will live without debts), perhaps you are financially lazy. Never think that this is not the right time to think about money savings, loans, retirement and investments. Every day you must think in financial terms, because if you do not, your life and your family will be increasingly exposed.
- You think things are fine just as they are now and so they should stay that way. Some financially lazy people do not have a strong desire to improve their financial situation, which makes them to remain happy and static in their comfort zone. Remember that there are always opportunities for improvement; there is always space to enjoy greater welfare, but financially lazy people do not find the incentive to take the first step; They think that what they have is good enough for them and prefer to keep things as they are.
- You feel you do not progress because you are looking for perfection. Many people who want to approach perfection end up paralyzed and being financially lazy. Those people, very demanding and too harsh with themselves, are devoted to go through the same ideas over and over again; they are happy thinking and analyzing, but they fail to act, and when they finally manage to complete a mental puzzle on their financial goals, they may not know how to prioritize, they are out of ideas to take the first step, or are unable to accept mistakes and tolerate failures. Remember that fear paralyzes and the end result of thinking too much is inaction.
A minimal financial education, self-esteem and good attitude in front of uncertainties may prevent you from being financially lazy. Always act with a sense of urgency (starting today); enhance everything you can improve (never get complacent) and do not devote much time seeking perfection, because in the end who is perfect in this world?
Many times we complain about not having enough money to cover our monthly expenses; it seems that we never have enough money, because the greater the amount entered in our bank account, the faster we spend it.
Although the issue of money is a sensitive subject for most of us, it is very likely that we are unaware of what we spend, or do not know for sure what we do with our money (we just realized that we no longer have it ), and those little recurring and regular expenses are the main routes where it escapes from us. Unnecessary purchases, unnecessary expenses, certain habits and certain social compromises, undo our pockets allowing our money to “Drain”, significantly reducing our ability for saving and investing.
If you take out your pen and play around with the numbers, try to calculate what you spend on coffee, bottled water and cigarettes; sum the monthly payments you make when you invite your classmates or workmates; try to calculate all the money you spend making small purchases of what you like or what attracts you, even when you don’t really need them.
It is not about depriving yourself of the things that please you, but to become aware of what you do with your money and the need to preserve some leeway that allows you to handle unforeseen situations.
If you want to prevent your money from leaking, try to get enough discipline to stop eating at fast food restaurants, reduce your consumption of coffee and cigarettes; have fun with outdoor recreational activities such as parks and rides that do not require large outlays of money activities. If you go to the movies, think about what you spend on popcorn and soda (these costs are quite significant). Try to go to work on foot or by public transport, and attempt to reduce the use of your own vehicle to avoid payments for fuel, parking and even an occasional fine which you would be exposed to.
And if you go to groceries stores, do it after eating; that way you can resist the lure of buying what you do not need, or purchasing too much (remember that the more you earn, the more you consume). Of course, avoid buying items for their beautiful packaging, as well as articles and magazines that are on the waiting lines of the cashiers (if they are there, it’s because they are not really needed).
In short, start identifying the small holes from where your money is escaping. You may be surprised when you see that without realizing it you’re losing up to 30% of your salary, and that that amount can be used far more intelligently to reduce some of your debts at your own pace, and make investments that increase the value of your money.
It’s said that money is the root of all evil. Some popular sayings like: “more money, more problems”, or “blessed are the poor” invite us to think that on occasions, it’s preferable to not have money because it changes people and, in many cases, it’s the root of severe personal and family conflicts.
At the same time, when you have enough money, you feel that life is more bearable, less worrisome; what previously overwhelmed you, now you see from another perspective. Having financial freedom makes you see the world with more light, you live carefree, you breathe air of safety and self-esteem, you can afford to buy a house, a nice car, enjoy holidays and of course pay religiously all monthly receipts and obligations which you have committed to.
Historically, money has always been stressful, but lately, the list of elements that generate tension and anxiety is being led by issues related to money, and with good reason. If we recognize how difficult it is to earn a living, it’s no wonder that we are so sensitive about the issue of money, and there are so many people that suffer day after day, building irreversible consequences for their physical and emotional health.
Pay attention to these facts about how money impacts stress levels
- The lower the income, the greater the propensity to stress. The American Psychological Association (APA) has shown that in recent years, people with lower income are more likely to suffer from stress. This contrasts with a study in 2007, in which a significant correlation between income and stress levels experienced by people who participated in the study was not found.
- Feeling the inability to pay for health care can really make you sick. Money problems cause stress that can lead to health complications for two basic reasons: firstly, you become ill due to stress; but at the same time, you neglect your health because you are too focused on money problems and also because you’re convinced that you do not have enough slack to allocate some of that money to health care, or you feel you must save the little money you have to meet mandatory and extremely necessary expenses. Under these conditions, health rapidly deteriorates, increasing vulnerability to serious events such as strokes or heart attacks. Moreover, the loss of health, the burdens and concerns, significantly influence the responsiveness to overcome the crisis; you cannot think straight, much less evaluate opportunities and choices you have to take to make smart decisions based on your personal circumstances and family. This generates more stress and a tendency to eat in an unhealthy way, to overeat and to have irregular sleep patterns. As you can see you get into a vicious circle that is difficult to escape
- You will never be able to buy with money one of the best antidotes for stress. In most cases, emotional support from family and friends is the only truly effective way to reduce stress and combat its effects. The simple fact of having the support of people who may help you in your worst moments, increases your tolerance to uncertainty and dramatically reduces stress levels. A survey by the APA in 2014, concluded that 43% of people who reported not having emotional support, increased their level of stress in the last year, compared with 26% of those who acknowledged such support.
You may have noticed the importance of preventing stress from taking root in your life, and even more money-related issues. To prevent this, the American Psychological Association makes a set of recommendations which are briefly summarized as follows:
1) Do not panic or fall into negativity; on the contrary, you should remain calm and focus your mind on the solution.
2) Identify factors that really cause financial stress. This is a must to develop specific action plans to overcome each of these factors.
3) Assess the way you are handling money related stress (smoking, alcoholism, depression, abuse, violence, etc.) and establish the necessary corrective measures before the conflict becomes more difficult to resolve.
4) Avoid the routine and find new ways to help turn bad times into real opportunities for personal growth.
5) Ultimately, if none of these recommendations take effect and you’re still overwhelmed by your financial worries, it will be very useful and convenient to seek professional support.
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