2020 has been a very difficult year for most people. The loss of livelihoods as many companies were either forced to scale down or shutdown has been and continues to devastate so many. To compound the issue is the upcoming December holidays where many people will be spending time with family and will invariably spend more money than usual.
Having a regular income and still not being able to afford all the things you need and/or want is difficult enough. Not having an income at all while your expenses mount is distressing. Particularly during what is supposed to be a joyous holiday season. It is, therefore, crucial to be honest with yourself and those close to you about your finances. You must have frank discussions with those close to you about what you can afford and what your limitations are. Employment is not guaranteed in these uncertain times which means we all must pay particular attention to how we spend our money now and especially over the festive season to avoid financial catastrophes in the future.
A very important factor to consider during this time is your psychological wellbeing. Going through financial difficulty can and has been proven to have disastrous effects on your mental wellness. Depression, anxiety, low self-esteem, unhealthy coping behaviours such asovereating, alcohol and drug abuse are typical effects of financial strain. That is why it is vital to be honest about your financial situation.
This article was featured in the Financial Planning Institute of Southern Africa’s website. To read the rest of it, please follow this link – https://www.fpi.co.za/FPI/News/Finding_balance_in_tough_times.aspx