We are emotional beings and everything falls back on our emotions. When someone gets on your nerves, you get angry, when you achieve a certain feat, you are happy, when you lose someone or things don’t go as planned, you become sad or worried. The outcome of every event whether major or minor leaves a print on your emotions. However, when you’re not emotionally balanced or are emotionally distressed, it could result in certain behaviors that are common to most of us.

For example, if you’re angry, you may lose your appetite because you are in a state where your body is in ‘fight or flight’ mode. Similarly, this emotional state can lead you to make impulsive financial decisions, such as buying something in an attempt to cool off. Buying those things is a temporary decision, but can also be satisfying, except that it can disrupt your financial planning and lead to regret once the emotional high fades. 

On the other hand, feelings of sadness or loss can lead to a lack of motivation to manage financial responsibilities. You will lose interest in so many things and you may become numb. You may care less about bills and leave them unpaid, or you may leave your investments unchecked, and budgets neglected, which can cause further financial stress that will add to the emotional burden. 

Stress and anxiety can also make you more susceptible to marketing that plays on your emotions, convincing you that a certain product or service is the key to happiness or relief, thus encouraging further spending.

You could see ads like “…our products will make you happy for life.” When you’re in the right frame of mind, you will likely hiss and chuckle when you see such an ad, but when you’re distressed, you may want to consider buying such a product because it sounded cool to you. Not just because it sounded cool, but because you’re not just thinking straight.

How Emotional Distress Can Further Affect Your Finances 

The connection between emotional health and financial stability is sometimes overlooked, but we need to acknowledge how stress, anxiety, depression, or even acute emotional events can lead to financial difficulties.

Have you ever noticed when you’re going through something, your decision-making processes can be impaired, you may see yourself using your credit card without thinking twice? For example, you may turn to ‘retail therapy’ as a coping mechanism, buying new phones or gadgets without actually needing them or when you clearly can’t afford them. This behavior will not even address the emotional issues and will still compound the financial stress by adding unnecessary debt to your life.

Stress and Productivity Level 

When you’re emotionally distressed, it can affect your ability to work efficiently. If you experience a high level of stress and anxiety, it can lead to decreased productivity, absenteeism, and in severe cases, may even result in job loss.

Now, when there’s a reduction in income or a complete loss of it, it can lead to financial strain, which can also create a cycle where financial worries contribute to emotional distress, which in turn, leads to further financial difficulties.

Moreover, the long-term effect of emotional distress is another issue. You may find it challenging to focus on long-term financial goals, such as savings or investments. This lack of planning can have repercussions down the line. Imagine not having a retirement plan, and you are almost getting to that retirement age or still stressing over debt issues. Not having plans for the future will stress you in the future, and it would mean you will keep working hard for a long time, and no time for rest.

It Can Affect Your Relationships

Emotional distress can also lead to a breakdown in communication within families. Mr. A is going through some challenges that are taking a toll on his emotions. He has become reluctant to discuss financial issues because he’s probably ashamed or afraid of judgment. This is also preventing him from seeking the help he needs, whether from family members or financial professionals.

For him to address this issue, there’s a need to accept the intricate relationship between his emotional well-being and financial health. Individuals need to recognise the signs of emotional distress and its potential impact on their finances. When they tackle the issue itself, then every other thing will probably fall in place.

Seeking Help 

Seeking professional help for emotional issues can be very important in breaking the cycle of emotional distress and financial instability. Likewise, you need to implement practical financial strategies, such as creating a budget, setting up automatic bill payments, and prioritising debt repayment. This can alleviate some of the financial pressures. 

You should also encourage open discussions about financial concerns within your family and seeking advice from financial advisors can also provide the support and guidance you need to navigate through these challenges.

You Can Get Rid of Debt!

Sometimes, it may not be life challenges that lead you to carrying heavy debts. It could be a lack of good financial planning, it could be an emergency you didn’t manage well. But no reason is worth judging you for, no matter how much you would like to blame yourself. Life happens to the best of us, and sometimes, the best financial planner also has debts he’s managing. But what’s more important is you can get rid of debt and even reduce it by up to 80%, and interest will stop immediately. You can speak with one of our debt experts at EmpireOne Credit to see how we can be of assistance to you. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!