Financial stress

Depression and Financial Stress

Financial Stress Contributes to Depression

The low interest rates at the moment are helping to keep a lid on it but if these begin to rise significantly many thousands of households will be adversely affected.

Did you know that financial stress is one of the biggest causes of depression in adults in modern society?

financial stress
Financial worries

In an American survey done by the American Psychological Association in 2017 it was found that 62% of the American people suffer financial stress which in turn can affect their emotional and physical well-being.

The situation is not as bad in Australia but with rising cost of living especially for essential services and stagnant wage growth there is still a large number of people struggling to pay bills and experiencing financial stress. Statistics show there were over 30,000 bankruptcies last year and that will increase as housing takes a correction.

Four out of five credit card holders rely on plastic to pay for day-to-day expenses such as groceries and bills, according to a survey of 1003 people conducted by comparison site Mozo..

People are getting deeper into debt and whilst most are employed it’s the rising cost of living that is becoming a real burden for households. The cost of fuel, electricity and mortgages are all causing stress in some households.

The low interest rates currently are keeping a lid on it but if these rise even by a few percent many people who have borrowed heavily to purchase a home will be under significant stress and will be really under the pump trying to pay mortgage bills.

Both Parents are Working to Cover Expenses.

When I was growing up it was normal practice for a mother to stay home and raise her children, people could and did manage on one income. That is no longer the case and both parents’ are finding they need to work to meet their financial commitments. This means either children are given a door key and left to fend for themselves till the parents’ return home or a lot of money is being spent on child care. Either way the stress increases as the burden of childcare eats at both the finances and the emotions. Parents feel a see of guilt having to leave their children with someone else and they also feel bad about not being there when the kids come home.

This is a real dilemma for many families and that in itself is enough to cause a large degree of stress. The other issue is that the financial stress can lead to arguments between the parents’ over things such as who is spending what and who is contributing or not to the extra chores running a household demands such as cleaning and running children to their various activities etc.

The other problem is that by the end of each day both parents’ are tired and often struggle to feel motivated to do anything else. The children will cop the brunt of the parents’ inability to cope and the arguments that arise. They may feel like they are responsible for the parents’ outbursts of frustration and anger.

Overtime the stresses which are often only getting worse end in a marriage breakup and a broken family with added costs as there will be a financial settlement and then the cost of running two households. It’s a no win situation for everyone involved.

There is now added to the financial stress more financial stress and emotional stress as well. On top of this the children in the family are traumatized by the breakup of their parents’ and they too are at risk of suffering some form of depression.

Nobody wins, the finances are not addressed, and the family is shattered. They are all at risk of suffering health issues once it reaches this point.

Much of this could have been avoided with early intervention and a little help from a qualified financial consultant.

 

How to Avoid or Deal With Financial Issues

There are many reasons why we need to address the issue of finances early to avoid getting to a point of no return, where the stress of it becomes too much and the family falls apart. If you can find ways to save money and pay down outstanding debts it will improve not only your relationships but your whole quality of life. Below are a few tips to help you take control of your money issues and help you to enjoy life more fully without the stress of not being able to cope with the financial pressures.

    • Make a list of the three biggest financial concerns you face. Don’t make a long list as this will only be overwhelming.
    • Determine a set amount that you can work on to reduce that debt each and every month without too much sacrifice but an amount you can manage. It must be achievable and you must stick to it.
    • Be positive. Believe in yourself and think positively about the end goal and the freedom of reducing debt. Keep a positive “I can do it ” attitude.
    • Make a list of all the things you have been spending money on and work out which ones you might cut back on to achieve your financial goals. For instance entertaining at home rather than the restaurant. Perhaps alcohol or cigarette consumption could be reduced or cut out. Be honest with yourself about what you are spending on and make small adjustments.
    • Routinely assess how you are going and try to see if there are other measures you can take.
    • Always try to pay the credit card on time as the extra interest for failing to do so is an extra cost you do not need.


“If you buy things you do not need, soon you will have to sell things you do need”

Warren Buffett

Perhaps one last thing you might like to do is start an online business to earn a little extra on the side to help with your financial situation. I can suggest a really good place to do this which will not cost you too much but may well help you achieve your financial goals.

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The link below will lead you to a site which will help you build your own website and then how to earn money from it. Take a look and if you can spare a little extra time each day to work on it you will soon see success in an online business.

Would You Like To Discover a Genuine Way You Can Earn a Little Extra Cash to Help You Achieve Your Goals?

Find the Answers Here

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Comments

    • Gracen
    • February 27, 2019
    Reply

    Hi Admin, of course it is a glaring fact that financial instability is the main cause of depression, someone who can’t effort the next bill and doesn’t have hope of eating three square meals a day, will definitely go into depression and anxiety. It is so unfortunate to know that over 30,000 bankruptcies took place last year in Australia. The era of one parent working while one stays at home has past, however the only consolation is that stay at home Moms can actually engage in online business they can stay at home and do. The points you listed on how to deal with financial issues are on point.

      • admin
      • February 27, 2019
      Reply

      Thank you Gracen for visiting my post and for your comments.  Financial stress is one of the biggest contributors to our depression statistics.  The suicide rate among our farmers has been alarming as they have confronted droughts, fire, and floods resulting in huge losses. They really struggle with both the emotional trauma and the financial loss, for some it is just too much to bear 

    • Richard
    • February 27, 2019
    Reply

    The separation between wants and needs is in my opinion one of the fundamental issues of today’s generation. The “I want it now” mentality has resulted in sky rocketing debt and all of the stress that you have highlighted in you post. 

    I like that you reference the Warren Buffet quote as this hits the nail on the head. Getting yourself out of debt and leading a sustainable financial life is only possible by means of self discipline and by that I mean, dealing with the truth that we cannot have everything and we need to accept to do without sometimes.

    Thanks for a great post, I really enjoyed it.Rich

      • admin
      • February 27, 2019
      Reply

      Thank you for your response Richard. When we started out we bought most of our furniture from clearing sales or auctions and we lived in an old but comfortable rented cottage.  We grew our own .veg and killed our own meat. I made all my own clothes and the clothes for our children . By the time we were in our early thirties we had fully paid for our second farm and were ready to purchase another.  

      You are right, it requires lots of self discipline and a head down, bum up attitude.  We have been married 50 years, and no longer want to buy more property. 

      We feel very blessed but we have also put in the hard yards. 

    • Dale
    • February 27, 2019
    Reply

    Bar none financial stress has always been an issue.  I am 51 years old and have been dealing with financial stress almost 30 years.  Im not going to lie after that long it does wear on a guy.

    It can be something as small as where we are going to get the money to pay this months hydro bill or how we are going to survive retirement.

    This is a great article.  We are a two income family and I also have an online business and I am not going to lie.  Life has felt a bit easier but still far from relieved.

    Thank you for a great article.

    Dale

      • admin
      • February 27, 2019
      Reply

      Thank you for your comments Dale.  You have much to be thankful for as you and your partner are still together. Financial stress can in some cases destroy a relationship. So be thankful and feel blessed.

    • ajibola40
    • February 27, 2019
    Reply

    This is the very common issue facing many this days financial stress that leads to depression

    most times the problem start when you are spending the money you are not earning 

    knowing how to manage expensive is important especially when you don’t have a job or your job is not earning you enough. I know many will find this article help in there financial life. 

      • admin
      • February 27, 2019
      Reply

      Thank you for your response. It was my intention for people to find it helpful.  You are right when you say people spend beyond their means, I think there still exists a big pressure to keep up with the Jones’s rather than be happy where you are and wait till you can afford the luxuries

    • Nuttanee
    • February 27, 2019
    Reply

    I read an article the other day about depression and Jim Carrey said something that touches me. “Depression is like rain, you never know when it is going to rain” Depression is something that I have been dealing with my whole entire life, I stopped taking the medication for it since it is an instant gratification with many side effects that can only ruin my health.One factor that contributes to my depression is definitely finance related. I am blessed that I no longer has any dept at this point in my life but I still worry over the bills and income. I just hate the “Not Knowing the Future” aspect of my life. This year I got hit with the dental procedures, what is going to come next?Some days I feel really depressed but I no longer let it controls me (it is hard to explain but It is almost like you got rain all over you, you are wet but you have to move on with your days pretending that you are not wet. It will be dry the next day. Relatable analogy? lol) I am working on passive income as we speak so I can finally cut one problem out of my life.Great post 🙂

      • admin
      • February 27, 2019
      Reply

      Thank you for your very open and honest response. I like your analogy of the rain but you must remember you can put up an umbrella and always be aware that sunshine follows rain.  There are many ways to deal with depression besides put a bandaid on it (pills) You need to start each day by focusing on the sunshine, that is the blessings in your life. this will help keep you dry when it rains.  Take care and God Bless.

    • Olalekan
    • February 27, 2019
    Reply

    Your article is lovely and educating. Financial stress has been the problem of larger percentage of the world population. This has affected their emotions and psychological balance. It’s not really cool not to have a money or to be financially broke. I agree with all the steps u gave so to avoid financial issues in life. Thanks for sharing this. 

      • admin
      • February 27, 2019
      Reply

      Thank you for your comments, financial stress is a big issue for some people. It is not an area we got a good education in and many  people try to spend beyond their means and then the bills start coming and there is not enough left to pay them or something unforeseen happens and they have nothing put aside. 

    • Mary
    • February 27, 2019
    Reply

    Tons of good  information that is well detailed and will be of good help to your reader. Money may not be the root of all evil, but it’s definitely the causes of depression. Depression is a common and very serious medical illness that affects how we feel, think and act. I like the ways you listed ways on how to avoid or deal with financial issues. I have gain a lot in this article. Thank you for sharing!

      • admin
      • February 27, 2019
      Reply

      Hi Mary and thank you for your comments. Financial stress is indeed a very big trigger in the cause of depression for many people and so we need to learn ways to manage our finances so that it does not reach that point. 

    • Paul
    • February 27, 2019
    Reply

    Hi Judy, 

    This is a relevant article for the masses. I enjoyed reading this article for several reasons that are particularly close to home. 

    I have suffered from depression and financial problems most of my life and can attest to the ups and downs of life that depression has caused me. 

    As a young man growing up, I guess I was one of those who had a poor financial acumen and fell on the road of maxing out my credit and for-ever being in the credit companies’ pocket.

    Thank you for sharing and making others aware of one of the main triggers to the road of depression; financial stress!

      • admin
      • February 27, 2019
      Reply

      Thank you for your very open response Paul. I take it you are on the other side of that now and in a position to help others. I have a philosophy of passing it on. Share your blessings and you will be blessed. 

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