By: Hajra Noor, Laiba Jabeen, and Kashmala Zahid
What is the biggest problem in your life? The teacher asked the class filled with forty college students. Thirty-five of them replied by saying money. How do you cope with the financial stress, especially after Covid? The teacher asked again, and most answers were, “they don’t”. Some said meditation, yoga, or not stressing about money have helped them.
Money has an essential role in our lives. As we grow older and older, the importance of money grows for us. If any of us fails to raise certain amounts of assets, it depresses them. After Covid, everyone in this world has faced some sort of financial anxiety. There is inflation all around the world. Underdeveloped or developing countries are suffering the most. Here are some ways to overcome post Covid financial stress.
Reality Check of Your Financial Situation:
As, Noel Moye has written in “5 Ways to Combat Financial Stress amid Uncertainty” that, we need to take stock of our position. First of all, try to go through all your finances. Where do you spend your money the most? Where you don’t need to spend some extra penny? How much do you save? How much do you owe? Are you spending more than you earn? Are you keeping a manageable level of debt? Are your bills up to date?
These are all the questions that you need to answer and honestly judge. It is helpful to know how you’re doing financially, including regularly reviewing your spending habits, debt levels, savings and investments, and credit reports and scores. Write it all down. Look at all recurring costs, such as utilities, to determine what must be paid each month. It will clear your mind regarding your financial situation.
Look For Low-Cost Alternatives:
“Make sure you have enough in the way of cash and other liquid assets that can carry you through tough times,” said Eisenberg.
Zarafshan Asad in her LinkedIn has written that, to save money for tough times like health issues, and accidents, we must sacrifice some of our wants to meet our needs. The saving process is hard but not impossible.
Most of the time largest portion of our income goes to rent, utilities, and grocery bills. If you don’t travel much and living in the city center is expensive, try moving somewhere that would help lower the rent. Go the extra mile when shopping at farmer’s markets. They usually have excellent and cheaper alternatives to the foods you get from your local grocery store. Always meet your needs first, your wants can wait, so when you go shopping make sure you have a list and stick to it. Reduce fuel costs by using public transport.
Daily Reminder, You Are a Human:
Keep in mind that you are not a God or some mystical creature that has everything under their control. You are a human being that cannot control everything. The market fluctuates a lot, so keeping your calm in increasing inflation can be hard. But in general, it’s easier to manage financial stress if you understand the financial issues that can be addressed, and which are out of your control.
To take control of your finances try to build a solid plan. Work with a financial advisor to determine savings needs and investment growth targets. Keep your goals straight. Build an investment portfolio that can help you reach your goals. Don’t overthink your goals. Keep them realistic and trust the process. Nauman Ejaz’s article “4 WAYS TO OVERCOME FINANCIAL STRESS POST COVID -19” might help a lot in this respect.
Health is Wealth:
There is a famous quote of Denis Waitley that says, “Time and health are two precious assets that we don’t recognize and appreciate until they have been depleted.” Staying at home and watching the news for half of the day increases anxiety and stress levels. You are also wasting your two precious assets. Sitting all day alone not only destroys your physical but also mental health.
Exercising and eating healthy helps your body to be well nourished and strong. A healthy body leads to a healthy mind and vice versa. Try to move your body for at least 30 minutes a day. Go for a walk in a park. Watch children how they are playing, and laugh. Watch an old couple holding hands and walking in a garden. Feel the changes of season and remind you, “Money is not life, life is the most beautiful thing beyond money. You can gain or lose money
but once life is gone, there will be no other chance”.
Kakeibo:
Teach yourself and your children “kakeibo: The Japanese art of budgeting and saving money”. The Japanese tradition of using a kakeibo, which translates to “household finance ledger,” offers an easy solution to mindless spending habits. This budgeting system combines tracking purchases with the habit of mindfulness to reign in unnecessary spending and help you achieve savings goals. The first step in kakeibo is to become aware of what’s happening to your finances. This means keeping detailed track of your spending for a set period. Journaling your spending and income is at the heart of the kakeibo practice. There are four key questions to ask yourself:
1-How much money do you have to spend?
2-How much would you like to save?
3-How much money are you spending?
4-How can you improve next month?
The last question reminds us that there is always room for improvement.
Kakeibo requires you to write down everything you buy and streamline your budget by grouping purchases into four categories:
1-Needs: Things you cannot live without, like food, toilet paper, and shampoo.
2- Wants: Purchases you enjoy but don’t need, like a takeout meal or pair of new shoes.
3- Culture: Things like books and museum visits.
4- Unexpected: Expenses you weren’t anticipating: like a doctor’s visit or car repair.
These are just a few steps that can be taken to help you to deal with financial stress. However, one should not confine to these steps only. It is best to look for options and measures that would best suit you and incorporate those into your routine.
Just remember this chaos shall pass. Your health must be your priority and never take it for granted. Always seek professional help and express yourself.
Hajra Noor, Laiba Jabeen, and Kashmala Zahid are environment activists and currently pursuing their bachelors in International Islamic University, Islamabad. They can be reached at hajra.bses1777@iiu.edu.pk, laiba.bses1819@iiu.edu.pk, and kashmala.bses1780@iiu.edu.pk.
