Updated: Feb 26, 2020
The father of investing, Ben Graham, said, "The investor's chief problem, even his worst enemy, is likely himself." You are your own worst enemy when it comes to making common financial pitfalls. It's not your fault - you are a human being and humans tend to make decisions based on emotion rather than logic, especially while under stress. A national survey conducted by Leger on behalf of Financial Planning Standards Council has found that 42% of Canadians rank money as their greatest stress. Nearly 3 out of 4 Canadians report feeling stressed about money at least sometimes and 1 in 4 Canadians say they have experienced extreme stress over the last month. Financial stress affects people in direct and intimate ways. In fact, 1 in 5 Canadians report that they have skipped going to the doctor for treatment because of financial concerns. In my years as a financial planner, I've worked with many people who have felt squeezed in terms of taking care of their daily financial needs and confused about where to invest their money. The good news is there are great ways to alleviate financial stress.
Here are 5 tips to help you develop a healthy relationship with money and minimize financial stress: 1. Have conversations about money with trusted friends and family. If you don't have anyone to talk to, or feel like the topic is taboo, speak with your financial advisor.
2. Understand your relationship with money by defining what being wealthy means to you. Find the answer and you will develop clarity around your future goals and objectives.
3. Lead a balanced life and follow your passions: discover what motivates you to get up in the morning and pursue this in your career.
4. Take time out for yourself to be active and take care of your body and mind.
5. Establish a written financial game plan to make your vision a reality. For more information on alleviating financial stress and making sure you have a winning financial game plan, please contact us. Good luck.