3 minute read
WEALTH
HOW TO OVERCOME FINANCIAL FATIGUE
Do you have a good relationship with money?
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LIANNE LUTZ
The words “Financial
Fatigue” can be frightening to hear, often whispered or brushed under the carpet - until it’s too late!
However, when facing an extreme financial crisis, the best way of dealing with this is to discuss it with your family members so that they understand and can support you emotionally. A problem shared is a problem halved.
What is financial fatigue?
Financial fatigue occurs when your monthly debt exceeds the amount of money available to pay for the debt. It can become overwhelming causing, anxiety, stress, and sleepless nights. Financial fatigue is painful emotionally, mentally, and financially.
Financial fatigue has an ugly cousin – Covid fatigue. Covid fatigue is also known as pandemic fatigue and it results from the endless changing of levels and the variants of the virus. Aside from the physical symptoms, people are feeling
demotivated and depressed. The fear of the unknown combined with an unknown duration causes uncertainty. The financial effects of Covid may include a possible loss of a job or a business that is no longer profitable.
When experiencing financial fatigue it’s a good time to have an honest look at your relationship with money.
Do you have a good relationship with money? Are you in charge of how you spend money or does money control you?
Although many people are experiencing financial fatigue, those who are in control of money will have a nest egg and money saved for a rainy day. Some may even have investments. Remember shoes and shiny bling are not investments - they are your credit card holding you to ransom!
How to overcome financial fatigue?
Be proactive, instead of feeling overwhelmed get organised. Adjust your budget or start budgeting to fit your current reality. Budgeting can be a safety net but, it requires selfdiscipline. Stick to the budget and the results will be rewarding!
Develop a positive attitude towards money. Be aware that late-night worrying makes financial problems seem bigger and thoughts become irrational. Instead of giving way to anxiety, take a step back, listen to music, and/or do some deep breathing. Doing this will lower your heart rate, decrease your blood pressure, lower your stress hormones resulting in you being able to think more clearly.
Five steps to overcome the practicalities of financial fatigue
1Consider debt consolidation.
2. Avoid using credit cards
and store cards until your financial situation improves.
3Go through bank statements to see which expenses you can decrease or remove.
4Differentiate between wants and needs.
5Set realistic goals for saving and investing.
Looking into the future, one of the financial lessons and insights may be to analyse your money personality:
Five money personalities:
1The investor – this is the absolute best!
2The saver – this is a wise place to be. 3 The shopper – as long as it’s on a debit card, not a credit card.
4The big spender - as long as it’s on a debit card, not a credit card. Getting into the irresponsible zone!
5The debtor – big trouble on the horizon. Unpaid debt attracts interest and can cause a lack of financial control. The danger zone!
Understanding your money personality and changing your financial behaviour and spending tendencies can make a huge difference to your future. With the correct mindset, discipline and good money habits, your future will be set and you shouldn’t need to experience financial fatigue again.
A stable financial attitude with investment and saving plans will lead to security for years to come. Your actions now can literally change your life. Learn how to manage your personal finances and prevent new debts from accruing to become financially stable. Get a financial advisor to assist with building a solid financial plan and advice on how to invest your money in the best possible way.
