Financial stress can be defined as unpleasant conditions in which one becomes depressed because they are unable to meet their financial demands, afford the necessities of life, and have sufficient funds to make ends meet.
Financial stress is a worldwide phenomenon. With the economic downturn, millions of people around the world are unable to meet their needs and aspirations; because there are no jobs and businesses no longer flourish, and therefore become hard for them to have their heart desires met. This leads them to some kind of unpleasant conditions, such as emotional and health challenges. Below are the grave effects of financial stress.
Unhealthy Behaviour due to Financial Stress
One of the most consistent findings in the literature is that financial stress is associated with a higher incidence of mental and physical health problems.
Analyzed data collected annually by the State of New York between 1914 and 1967 shows a correlation between economic indicators (e.g manufacturing employment index) and admission (voluntary and involuntary) to state Psychiatric institutions, particularly for men.
As the economy worsens, admission increased. Also as the economy soured, the incidence of suicide and alcoholism increased significantly. In other words, when people face financial stress, they are more likely to be hooked on drinking, overeating, smoking and other unhealthy coping ways. And this can lead to more stress in return.
Exposure to Maternal Depression due to Financial Stress
Women who are depressed or anxious during pregnancy can actually silence the stress-hormone-receptor gene in their child. This can be very dangerous because, when this gene is silenced, it becomes extremely difficult to cope with adverse situations, leaving a person more vulnerable to developing mental disorders.
Financial stress can cause persistent negative thoughts, such as beating yourself up over past mistakes.
Deteriorating Physical Health due to Financial Stress
People who are under greater financial strain may likely have their health deteriorating at a faster rate than unemployed young people under less financial strain. Those with a greater degree of financial hardship are likely to report headaches, stomach aches, or insomnia daily, or at least a few times a week. It can also result to decrease in ratings of their physical health.
Its effect is mediated by one’s sense of personal control and depression, and what that means is that financial strain increases one’s depression and a sense of losing control, which in turn appear to influence the deterioration of physical health. However, this is not to say that all people who are more depressed or ill are more likely to lose their job or suffer financial strain, but that financial strain actually increases depression and decreases health.
Decreased Quality of Life due to Financial Stress
Financial stress decreases quality of life in men and women, or husbands and wives. It makes them appear inferior and reduces their self-esteem. Also, it can mount pressure on them leading to hostility, legal issues and trouble with children.
Loss of Sleep
Individuals who have problems with money matters often suffer from sleeping troubles which can lead to a sleeping deficit, additional moodiness, impaired immune functions and cognitive abilities, and many more.
Unhealthy Emotions due to Financial Stress
Individuals who are in deep debt with their credit cards suffer frustration, anxiety; pressure and hopelessness as the debt continue to increase due to interests and many other charges. This leads to severe stress due to self-neglect and poor coping.
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Joseph is an author who likes to contribute to a variety of blogs. Joseph is married with one beautiful daughter. He lives with his family and writes to inspire productive life and financial freedom. And above all, he is a promoter and a champion of human well being.