The Effects of Financial Stress
If you’re concerned about your financial situation, it’s important to know you aren’t alone. People from all walks of life experience financial stress for one reason or another. And, while that stress can impact your personal health, family and work performance, it doesn’t need to overwhelm your life. Particularly in recent years where the COVID19 pandemic has created economic uncertainty for many, the importance of addressing financial stress early has become key.
Before you can address the effects of financial stress, you need to be able to recognise the warning signs. In this article we’ll be discussing the effects of financial stress on your life so you can keep an eye on your physical and mental wellbeing.
The Effects of Financial Stress on Health
The health effects of financial stress are well documented. Struggles with your income, employment status and debts that are going unpaid all create financial pressure that can be challenging to navigate. Some of the most common effects of financial stress on health include:
- Difficulty sleeping
- Mood swings
- Loss of appetite
- Social withdrawal
- Arguing with your loved ones about money
- Anxiety and depression
While these are all normal responses to stress, they’re often unhelpful behaviours that make it even harder to manage your situation. If you recognise any of those signs then it’s time to seek help from a financial professional. Simply having assistance to assess your situation and develop a solution can be all it takes to get your stress under control.
The Effects of Financial Stress on Families
For many of us, the personal effects of financial stress are impossible to separate from our family lives. Family financial difficulties often arise from things like loss of employment, making it hard to keep up with family expenditures such as:
- Household and utility bills
- Mortgage repayments
- Childrens’ school requirements
- Recreational activities and spending
With increased stress levels leading to things like arguing and strained relationships with family members, it’s important to manage stress before it takes its toll on the people closest to you. Remember that you aren’t alone in your situation. Involving your family and asking for their support can eliminate unhelpful and unhealthy stress responses.
The Effects of Financial Stress on Businesses
Unfortunately for business owners, the effects of personal financial stress extend beyond home life. It’s often the case that employees struggle to check their stress at the door. The result is that employees show a marked decline in work performance and low morale – not to mention time lost due to the distraction of dealing with their own financial matters. The effects of financial stress are being seen now more than ever. AMP’s 2022 Financial Wellness study found record numbers of Australians are reporting that they’re extremely stressed about their finances. The effect this is having on businesses and the economy is estimated at approximately $66.8 billion lost due to the decrease in productivity.
Businesses themselves can also experience the effects of financial stress. If your business is struggling financially, it can cause problems with being unable to pay employee wages, repay debts to creditors, meet ATO tax requirements and more. Businesses of all sizes can experience financial stress, with some of the most common causes being:
- Changes in market and economic conditions
- The emergence of new competitors and products
- Growing pains as the business expands
- A lack of Director experience
Whatever the cause, financially strained businesses should always seek professional advice early on. Maintaining control of your business’ finances is the key to running a successful business, so it’s important to address issues rather than waiting until they require more involved solutions like Voluntary Administration or Liquidation.
Manage the Effects of Financial Stress with Advice From Business Savers
Financial difficulties can have a significant impact on your family, personal health and work performance. As stress can quickly become a self-perpetuating cycle, facing the problem is the only way to reach a resolution. Happily, professional help is available to help you tackle your financial situation and manage your stressors.
At Business Savers we’re experts in helping people and businesses manage their financial stress. Our team is made up of financial professionals who offer a wealth of experience when it comes to financial stress management. Our services include solutions ranging from Personal Insolvency Agreements and Bankruptcy support to business Turnaround Management, Administration, Liquidation and more. Contact us today to make an appointment, or phone us on 1300 069 155 for a confidential discussion about your financial situation.