Feeling Stretched Thin: How Financial Stress Can Impact Your Well-being

The Worry Spiral

Financial stress is one of the most common worries for Filipinos. Malaki ang impact nito sa buhay ng tao lalung-lalo na sa ating mental health. Financial stress fuels anxiety. Palagi nating iniisip kung papaano pupunan ang pang-araw-araw na pangangailangan natin at ng ating pamilya. Kadalasan, ang pagkakaroon ng anxiety ay nagdudulot ng pagkawala ng tulog at concentration. This, in turn will negatively affect your performance at work and may cause unnecessary difficulties to your relationships.

Having mental health problems makes it harder to earn and manage money which can lead to financial difficulties. These financial strains then cause stress and anxiety because we don’t feel secure about our standing in life. It is a vicious cycle that we all fall victim to.

Money Can’t Buy Happiness?

Money can’t buy happiness—it’s been said a million times before and it definitely won’t be the last time that you will encounter this saying. Ngunit, masama ba talaga ang maghangad ng pera? According to Rastelli, Calabrese, Miller, Raffone, & De Pisapia (2021), “…although the definition of happiness has a long history and goes back to philosophical arguments and the search for practical wisdom, in modern times, happiness has been equated with hedonism.”

What is “hedonism” at ano ang kinalaman nito sa saya? It refers to habits that focus on fulfilling personal enjoyment like excessive consumption of food, drinks, shopping, and spending time and money on activities that only satisfy personal desires (BFI Finance, 2023, para. 5). Ibig sabihin, mababaw at fleeting ang pinanggagalingan ng ating saya o happiness. Sa mga halimbawa na nakasaad, lahat ito ay kailangan ng pera. Kapag wala kang pera para punan ang ating mga personal desires ay madali din mababawi ang kasiyahan na idinulot ng mga ito. And when you think about it, the over consumption in today’s society does not really prioritize the necessities like paying utilities, debt, budgeting properly, and the likes.

Security Is Happiness

Despite the negative connotation in the act of pursuing and wanting money, hindi naman talaga masama ito. Money CAN, in fact, buy happiness. Kailangan natin ng pera para sumaya and for it to work to our advantage, we need to maximize the money that we have through prioritizing our security. Magagawa natin ito if we place greater importance in fulfilling the necessities (needs) like having a roof over your head, allotting money for your emergency funds, getting insurance, safeguarding our health, focusing on your relationships, and maximizing our time. Therein lies they key: identifying what you “need” and what you “want”. Those two are totally different from each other; while the former are necessary to live the latter are things we can do without.

Tandaan lamang ang Happiness Equation: Relationships + Security + Purpose.

Kapag inuna mo iyong “needs” over “wants”, everything will slowly fall into their proper places. Security plays a big role in happiness as it gives you more bandwith to pursue other aspects in your happiness equation. When you no longer have to worry about day-to-day survival, you will eventually have more space and time to factor in your “wants”.

Negative Balance, Negative Health

Financial stress doesn’t just affect your mental state. It can manifest physically too. Ang mga common inflictions ng financial stress ay ang mga sumusunod:

• Insomnia
• Weight gain
• Physical ailments like headache, diabetes, high blood pressure, stomachaches, etc.
• Unhealthy coping mechanisms (overeating, substance abuse, smoking, etc.)

Breaking Free

Challenge yourself by prioritizing the necessities. Maaaring mahirap ka kumpara sa ibang tao but what you need to remember is that you don’t need to have a massive amounts of money. Start small and tackle what you can handle with what you have. You just need enough (money) to effectively fulfill your basic security needs. 

What security should look like for you:

• Have 6 to 8 months of emergency funds
• Pay off your credit card bills (use methods like the Debt Snowball)
• Save 10% of what you make
• Enroll in MP2 for tax-free savings
• Invest in low-risk, steady return portfolio such as UITF
• Buy a house once your saved enough for a downpayment

It’s A Tool

Treat money like a tool that will help give options, open opportunities, make experiences, and create breathing space when the going gets tough. Financial literacy is key so you can make informed decisions that will have a long-term impact. Pag-aralang mabuti kung ano ang mga “needs” mo at ng iyong pamilya at mag-budget ka ayon sa iyong kinikita. Maaari din namang maghanap ka ng credit or financial leverage dahil may mga panahon na kung saan kailangan natin ng konting tulong para makabangon at makapagsimula. Tandaan na gagamitin mo lang ito sa mga immediate needs katulad ng pagpapagawa ng sira sa bahay, pagbabayad ng utang na may mataas na interest, or di kaya’y sa pagtataguyod ng business na pagkakakitaan.

Money CAN Buy Happiness

Money can by happiness—IF and only IF we put it to good use.

You must acknowledge and address the impact that financial stress has on your well-being. Acknowledging the problem is the first step to a better financial future and overall mental well-being. If you do not identify the stressors, then you cannot begin to resolve them.

Focus on self-care. Wag mong kakalimutan na alagaan ang iyong sarili. Kumain ng masustansiyang pagkain, matulog sa tamang oras, mag-exercise, maghanap ng pagkaka-abalahan o hobbies, at iba pa. Never neglect yourself and your health because it is the only way you can actually work right and earn accordingly. Remember that a  strong foundation helps you manage stress better.

Take note and celebrate even the smallest financial wins to boost your mood and motivate you to do better. Magsimula sa paggawa ng budget na naaayon sa pangangailangan at pasok ng pera. Mag-set ka ng realistic financial goals katulad ng pagbabayad ng utang sa credit card hangang sa matapos ito or di-kaya’y pagtatabi ng pera para sa iyong emergency funds. Remember: Small steps with big impact!

In conclusion, do not use money to chase fleeting and temporary highs. It gives a negative connotation and overall bad vibes from the act of earning money. Use money as a tool to secure the necessities in your life so you will have more time to think about the other aspects that will add contentment and happiness. Remember, financial wellness is part of overall well-being. By managing your finances and prioritizing your mental health, you can create a more secure and joyful future.