Written by: Tradex
It probably comes as no surprise that finances can be major source of stress. According to a 2018 Financial Planning Standards research, more than four in ten Canadians (41%) say money is their greatest stress and 48% of Canadians have lost sleep because of it. Rising interest rates, record high inflation, volatility of markets, looming threat of a recession, and current economic conditions have caused worry.
Financial stress results from having to face tough decisions on spending and long-term savings goals that impact your financial well-being. The symptoms of financial stress include:
- Decreased decision-making ability
- Strains on personal relationships
- Sleep problems and headaches
- Declining overall mental and physical health
Here are some tips to manage your financial health.
1. Have a plan
In order the find the best route to any destination in your GPS, you obviously need to enter a starting point. Not surprisingly, the same principle applies to planning your finances and reaching your goals. This starts with an honest assessment of your current financial situation, reviewing income sources, expenses, and spending habits. Then it is a matter of creating meaningful short and long-term goals and identifying the best way to reach them given your starting point.
The financially prepared are:
- Almost 25% more likely to identify themselves as being very healthy compared to those unprepared.
- 2.5 times more likely to have a strategy to manage and maintain their health.¹
2. Work with a financial advisor
Financial advisors influence behaviours and help their clients to not only develop financial goals and plans, but to stick to them. The financially prepared are almost four times more likely to be working with a financial advisor. According to Blair Cooper, CEO and Financial Advisor at Tradex Management Inc., an advisor’s purpose is to educate and guide clients on their investments options that fit their unique objectives and financial situation: “A trusted advisor helps to relieve clients’ stress by focusing on longterm wealth creation and assisting them to avoid inappropriate and emotional investment decisions.”
3. Balance today’s spending with tomorrow’s lifestyle
About 70% of Canadians across all generations are worried they have not saved enough for retirement.²
Once you have identified your essential spending requirements, an important decision will be how to allocate your discretionary income between the lifestyle you want today and the one you want years from now. While you don’t want to completely deny yourself of the activities that you enjoy now, it is crucial to regularly set aside funds to keep your future self happy and healthy as well.
While public servants have a strong pension plan, having a forecast assessment of your overall cash flow can make you confident that you are on track with your spending and saving goals and reduce your stress level.
4. Make financial well-being a priority – We know that exercise, proper diet, and improved social relationships are all ways to keep our stress levels down. Similarly, taking steps towards better financial preparedness, such as making a plan and working with a trusted advisor will help you feel more in control and improve both physical and mental health.
For more information, contact Tradex at info@tradex.ca, by phone at (613) 233-3394 / Toll-free: 800-567-3863 or visit their website at www.tradex.ca
Takeaways
- Communicate your financial concerns and hopes with your
family and a financial advisor to reduce stress levels. - Work with an advisor to identify your financial challenges and opportunities to maximize the benefits of different investment plans available.
- Take action, no matter how small. Create a plan that will allow you to feel more in control of your financial future.
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1 https://www.manulife.ca/personal/plan-and-learn/healthy-living/wellbeing/the-health-and-wealthconnection.
html
2 https://scotiabank.investorroom.com/2020-02-11-70-of-Canadians-Think-They-Wont-Save-Enough-for-
Retirement-Scotiabank-
Poll#:~:text=70%25%20of%20Canadians%20are%20concerned,their%20financial%20independence%20in%20retire
ment
