Managing your money well can make you healthier.
The more we learn about money and how to manage our finances, the less likely we are to suffer from stress. There's a long list of things in life that can cause stress and stress related illnesses, but in the current financial crisis, money is definitely topping that list. The further people fall into debt, the more their physical and mental health can be affected. These constant money related worries are causing more and more people to become highly stressed and ill. As blood pressures rises and depression deepens, more and more people are suffering from ill health, as a direct result of stress.
If we learn and teach our children how to manage finances well, our money worries will be a thing of the past. Not only will this reduce the risk of stress, but it will make us better prepared if another financial crisis hits in the future. Read on to find out some great tips on debt management, and how you could stay stress-free.
How to get out of debt and become stress-free.
The credit crunch is hitting people hard. Those in debt and those with existing financial problems are amongst the worst affected. Those with loans, credit cards, and high mortgage repayments are struggling the most, and are dangerously close bankruptcy. In order to dig yourself out of debt, you need to face all of your money problems head on, and deal with each individual debt at a time. Here are some tips to help you get out of debt.
1) Cut up your credit cards. Juggling your debt with credit cards, and using them if you're low on cash will only make matters worse. Whatever you spend, you'll end up paying more, because of the added APR.
2) Create a daily, weekly, and monthly budget. Decide on a realistic budget and stick to it. This will help curb your spending and you can use the extra cash you didn't spend to help pay off your debts.
3) Change providers. Shop around for cheaper utility companies and insurances. You may be able to switch over and save some money on your bills each month.
4) Get help. If you can no longer manage you debts, seek professional help. An insolvency practitioner may be able to help you work our your finances, consolidate your loans and debts, and help to you get back on track. [1]
How to avoid debt and stay healthy.
Here are three simple tips that could help keep you stay debt free:
1) Don't spend more than you have
2) Don't take on too much debt
3) Keep track of your spending
Money worries + debt = stress. If you can keep to these three simple rules, then you're less likely to get your self into debt, and you'll stay stress free for longer. [2]
Teaching your children about debt and stress
It's becoming painfully obvious that young people now know very little about managing their money. Ensuring that your children have a good money education, will not only help them stay out of debt, but it could help them stay healthy too. Try to lead by example, and make sure your children understand the value of money, the importance of saving, and how to manage their finances wisely. [3]
References -
1 - How to cope during the recession – http://news.bbc.co.uk/1/hi/business/7684846.stm. Accessed Sept 26, 2009.
2 - Managing your money effectively – http://news.bbc.co.uk/1/hi/business/2962126.stm. Accessed Sept 26, 2009.
3 - Money Stress, Teaching Cents to Kids, Apprenticing – http://abcnews.go.com/Business/wireStory?id=6736011. Accessed Sept 26, 2009.
