Your financial stability relies on a variety of factors, starting with your ability to produce a budget forecasting future gains and expenses. Failure to make your budget work for your lifestyle and your needs increases the risks of developing a crippling debt situation. Debts tend to accumulate when you are not in a position to maintain your budget. We all encounter difficult times in life, whether illness temporarily affects your ability to work or you need to tackle unexpected repair costs. The bottom line is that debts, however stressful they are, can’t always be avoided. When your situation changes suddenly, your budget is the first element to be affected. You can, however, take preventive measures to protect yourself, from creating an emergency fund to taking the appropriate insurance cover.
But, even level-headed budgeters tend to forget that some debt-situations are self-inflicted. No emergency fund can protect you from the damages you can do when you intentionally embrace destructive patterns. It’s not that you want to take bad financial decisions, but you do as part of your natural coping mechanisms. You need to put your credit card away when these 3 enemies creep back into your day-to-day life:
Exhaustion is the mother of bad decisions
Almost a third of Britons sleep poorly. For many people, the key to sleeping well is all about your bed routine. A comfortable bed setting, with a quality mattress and breathable duvet, is detrimental. Experts recommend replacing your mattress every 8 years, except for specialist brands such as the Tempur Mattresses which can last for 10 years or more. When you’re tired, you’re prone to make poor spending decisions in an effort to compensate for your tiredness. From regular takeaway orders because you’re too exhausted to cook to reward purchases to make you feel better, you put your finances at risk.
Emotional purchases boost your mood, not your wallet
Whether you’re dealing with good or bad news, emotional purchases act as a mood management system. When you’re happy, the purchase serves a celebratory purpose. When you’re unhappy, the purchase is designed to bring joy into your life. The truth, however, is that it’s easy to fall for the trap of trying to buy your happiness. But you can’t use your credit card as a mood booster. You have to find your happiness in the little things in life, such as spending time with your family or enjoying the sunset.
Ethanol can make you do the weirdest things
What’s a little drink in the grand scheme of things? In theory, nothing. But in reality, drunk shopping is becoming an increasingly worrying phenomenon. In the US, where the phenomenon has been observed and analysed, experts estimated that drunken purchases account for $45b per year industry. With places such as Amazon, it’s easy to see how a few glasses of wine can have a dramatic consequence for your budget. After all, Brits are no stranger to the online splurge with £4.5 billion spent on drunk shopping every year.
Sometimes, getting your finances under control needs a little more than budgeting skills. You need to get your life under control by creating a healthy lifestyle. From creating a sleep routine that works to learning to manage your emotions, a healthy you also affect your financial situation.
This is a collaborative post.