Struggling to afford a meal or facing a sudden shortage of cash can be incredibly distressing. Imagine you would always have to face such situations for the rest of your life – how bitter it is going to be. This is why achieving financial stability is crucial. It’s not just about temporary money problems, but also about having a steady income, savings, and investments to rely on when needed.
Financial stability simply means not having to depend on others for basic needs or take out large loans due to overspending. In fact, it has numerous benefits for our health, well-being, and relationships. Let’s take a closer look at what financial stability entails and how it can make a positive impact on our lives.
#1. Financial Stability Significantly Improves Mental Health
Research has consistently shown a strong link between poor financial health, especially higher levels of debt, and mental health concerns. Being financially stable can protect you from financial anxiety which is often rooted in the fear of unexpected expenses or emergencies throwing off the delicate balance of income and expenses. It also protects you from constant mood swings, depression, and psychotic disorders. With financial stability, there is less cognitive load or overthinking as the constant mental burden of managing finances with limited resources is reduced. When one is financially stable, there are no worries about making ends meet hence, it gives focus and attention, boosting productivity at work or in other domains of life.
#2. Financial Stability Improves Physical Health
One of the most significant benefits of being financially stable is that it can help reduce stress. Unfortunately, financial stress is a common experience, and it contributes to a myriad of long-lasting physical health issues. Financial stress often leads to engaging in unhealthy coping behaviors, such as drinking, smoking, overeating, malnutrition, and other mechanisms that exacerbate stress and pose additional health risks.
Less money for self-care is another consequence of financial stress. Those struggling to make ends meet are far less likely to pay more to get better healthcare. Such people find it difficult to prioritize “extra” things like preventive measures, basic healthcare, or periodic medical checkups when meeting basic necessities is a priority. However, when small health issues go unchecked, they can turn into larger problems, leading to more stress in the long run. Financial stress also often results in sleep troubles, chronic fatigue, impaired immune functioning and cognitive abilities, as well as heightened moodiness.
#3. It Earns You Respect
Whether we like it or not, there is a common inclination to avoid individuals who frequently seek money or narrate their financial woes. It’s a societal tendency to shun such individuals, regardless of their qualifications or good nature. Now, imagine being the person in need—constantly requesting funds and expressing hardships. It’s unlikely to earn respect from others, including close relatives. In modern society, financial stability garners respect. Even a morally dubious individual with wealth is often given reverence. Therefore, financial stability translates to earning respect.
#4. It Prepares You For Old Age & Retirement
Another compelling reason why financial stability is vital lies in preparing for old age and retirement. Naturally, whether we like it or not, old age awaits all of us and we will retire from our work life. Financially secure individuals or couples can invest in retirement plans, ensuring a wealthier life during the golden years when regular income diminishes. Consequently, they can lead a more contented life in retirement. In stark contrast, financially unstable individuals typically rely on the benevolence of relatives for necessities including food, housing, clothing, and often, medical care during old age. Without outside support, financially unstable individuals face the grim prospect of destitution in their later years.
#5. Financial Stability Boosts Confidence and Self-esteem
Attaining financial stability can significantly bolster confidence and self-esteem. When you have command over your finances, you feel more in control of your life, experiencing reduced feelings of insecurity and worry. This empowerment leads to a greater likelihood of taking risks and pursuing personal goals, fostering personal and professional achievements while enhancing self-esteem.
#6. It Leads To Enhanced Relationships
Financial stability is not important to only you, it is important to you and all those around you. Financial stability often leads to improved relationships. Confident individuals are less likely to experience feelings of insecurity or jealousy, which can impair relationships. Moreover, they are more inclined to effectively communicate, resolve conflicts, and build healthy, positive relationships with others. Marriages and romantic relationships tend to thrive without the added pressure of financial stress.
#7. It Leads To Heightened Life Satisfaction
Ultimately, financial stability contributes to increased life satisfaction. Financially stable individuals are less likely to suffer from financial stress and anxiety, enabling them to focus on other aspects of their lives, such as relationships, hobbies, and personal growth. They are also able to meet their needs at all times. This, in turn, yields greater feelings of fulfillment and contentment, enhancing overall happiness and well-being.
#8. Widens Employment & Career Prospects
Prospective employers often seek financially stable candidates, as they aim to avoid potential money-related issues affecting their business. Financially secure individuals typically exhibit heightened focus and productivity at work, as they can compartmentalize their personal financial concerns. On the contrary, while individuals facing financial hardships can also display diligence and efficiency, their money-related stress may occasionally overwhelm them, potentially impacting their productivity at the workplace.
#9. It Creates Room For Financial Flexibility
Due to the absence of savings or a financial safety net, living paycheck to paycheck leaves individuals with little to no room for financial maneuvering. This lack of flexibility intensifies the stress, as any unforeseen expense or income disruption can potentially lead to a financial crisis. This can lead to missed opportunities for financial growth, such as investing in education or career advancement, perpetuating the cycle of limited resources.
#10. Financial Stability Contributes To Family Stability
Money can sometimes be at the core of marital discord. Fortunately, achieving financial stability and fostering open communication can contribute to a healthier and happier relationship, spilling over into the rest of the household. However, for families dealing with chronic financial stress, the anxiety linked to making ends meet often extends to children. Parents may argue about money, releasing their frustration onto their kids. Picture being a child and facing consistent unmet demands from your parents—it can strain the bond that should exist between parents and children.
Regrettably, kids who are directly or indirectly exposed to risk factors associated with poverty have higher chances of experiencing health issues in adulthood, including heart disease, hypertension, stroke, obesity, certain cancers, and even a shorter life expectancy. Additionally, children from impoverished backgrounds are more likely to be left behind in terms of education and socialization exposing them to stigmatization.
Continue Reading: Building Financial Stability: 7 Key Money Habits to Implement
It’s important to note that financial stability does not equate to a life devoid of stress or problems; however, it does diminish their impact or distance them to some extent. In conclusion, financial stability stands as a crucial component of personal health and well-being. From lessened stress and anxiety to enhanced mental and physical health, heightened confidence and self-esteem, improved relationships, and greater life satisfaction, the advantages of achieving financial stability are both numerous and comprehensive. To attain financial stability, it is imperative to focus on budgeting, saving, debt reduction, and seeking out assistance and resources when necessary.
