Financial stress is increasing
Stress for Success
April 22, 2008

There’s a sense of economic unease in America. Some are losing jobs and/or homes while others are tightening their belts. Over half of all workers report having money difficulties and subsequent health problems, such as depression. 2005 legislation made it more difficult to eliminate credit card debt leaving more Americans in a stressful financial corner.

There’s no doubt that financial stress can cause health problems:
§ Trouble sleeping is common and if it continues too long it depresses the immune system, increases moodiness, and negatively affects cognitive abilities.
§ A sense of helplessness increases along with rising debt, adding to your stress because you see limited options in dealing with it.
§ Cutting budgetary corners leads some to eat less healthfully or put off medical treatment.
§ High financial stress along with poor coping abilities increases the development of periodontal disease by twofold, according to a 1999 study in the Journal of Periodontology.
§ Unhealthy coping behaviors like over-drinking, smoking, and eating lead to a host of well documented physical problems.

Extra money doesn’t necessarily solve your financial concerns, make you happier nor reduce your stress. Don’t waste your energy hoping for it. Having an infusion of cash is great but the “happiness” it brings is temporary. You’d “habituate” to it, which eliminates the happiness bump. Just ask lottery winners. And, typically you’d increase spending to adjust to the extra income, possibly landing you in the same stressful boat. Instead of wishing and hoping for more money your energy is better spent more effectively managing what you have.

An important first step is to assess the severity of your financial troubles. Jeremy Vohwinkle (http://financialplan.about.com/mbiopage.htm) offers the following warning signs that you’re in over your head. You:
§ have no savings
§ make minimum credit card payments
§ continue to buy with your credit cards while trying to pay them off
§ have at least one credit card that’s near or over the credit limit
§ pay some bills late
§ don’t know how much debt you have
§ use cash advances from your credit cards to pay other bills
§ bounce checks or overdraw your bank accounts
§ have been denied credit
§ lie to friends or family about your spending and debt
Denying that you have a significant and mounting cash problem only perpetuates it and the related stress. The first step to getting out of financial difficulty is to admit that you’re experiencing it. Seek help if you cannot bail yourself out on your own. Vohwinkle recommends going to http://financialplan.about.com/od/creditdebtmanagement/qt/DebtAnonymous.htm .
Learn to be financially in charge, which increases your personal control, which automatically lowers your stress. Being in control also allows you to be more grateful for what you have vs. pining for what you don’t have, which can dramatically decrease unnecessary debt. Being in control expands your intrinsic self-worth, a much more reliable source than extrinsic self-worth, such as buying cars, homes and clothes.

Next week we’ll explore some of the habits that can back you into a financial stress corner.

Jacquelyn Ferguson, M. S., of InterAction Associates, is a trainer and a Stress Coach. E-mail her at www.jackieferguson.com with your questions or for information about her workshops on this and other topics and to invite her to speak to your organization.