Financial Stress and Investing Don’t Mix

The Situation

According to a recent study done by the American Psychological Association, one of the leading causes of stress for Americans is financial instability. Nearly 80% of those surveyed said that financial problems were the leading cause of their stress (Jones 2009). Financial stress is being felt as a result of our current economic situation that has forced many Americans to deal with the loss of a job or home, a shift in spending habits, or maybe even an entire lifestyle change. The economic turmoil has brought to the surface many concerns about financial security and even one’s ability to retire when originally planned. These types of financial stress have been shown to affect people’s confidence in their ability to make an informed decision about personal finances and investments. A person’s propensity to save money, create a budget, and control impulses is due largely to their perceived level of control over their financial future as well as their knowledge about financial management. How people feel about their finances is directly linked to how they feel about their lives.

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Financial Doom and Gloom Or Opportunity?

The economy was going crazy. There was more money and credit available then ever before. Then like a light switch it changed, instantly, overnight.

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5 Tips on How to Manage Financial Stress and Your Health

Global recession or not, one has to face financial stress every now and then in their lives. A common man has been cursed to cross roads with financial instability at some stage if his life. Financial problems lead to mental stress which doesn’t really help in the predicament. This mental stress does not serve any purpose and only results in creating further problems.

» Read more: 5 Tips on How to Manage Financial Stress and Your Health