Studies has shown that money is a problem common to many people wherever they are in the world. It is also considered as the top cause of stress, and this is understandable– lack of it can mean a missed meal, frustration, feelings of inadequacy, and even feelings of incompetence as society begins to view wealth as a measure for success. Financial literacy, to the uninitiated, seems daunting that some feel discouraged to get into it despite how much it could help their situation. There are so many plans available, so many unknown terms like chartered accountant insurance that one has to learn to easily navigate the financial world. Here are some practices that, according to studies, leave one susceptible to financial stress:
Lack of Preparation
Emergency situations and other unplanned life events could throw off almost anyone, but not as much as those who are unprepared. You cannot expect chartered accountant insurance agents to be good planners as it is not their job. Find yourself a reliable financial planner who could help you out. A good one would explain everything to you in ways that you could understand, so you don’t have to feel overwhelmed by the whole thing. A financial coach may also be helpful, as he or she may guide you in planning your finances and share insights based on his or her experience.
Paycheque to Paycheque Living
With all the newest gadgets, trending items, fashion, and almost anything coming out faster than paycheques do, some people tend to lean towards consumerism– that is, buying and spending on anything for whatever reason that they may have. This is a stark contrast to the traditional financial thinking that it is more important to save. This often leads to individuals living paycheque to paycheque. In this mind-set, people think that they could spend whatever is on their paycheque as long as it lasts until the next paycheque comes. It makes sense, in a way, but helps very little considering the long term benefits of wise spending habits. It could pose financial stress, too, as emergency situations, banking problems, delays, or any unexpected problem could throw off one’s budget and he or she may have too many days before the next paycheque arrives.