With news of rises in cases and filled hospitals left and right, you would probably wonder why we would even need to plan financially. Yet during these unprecedented times, being financially prepared makes all the difference. Loss of jobs and reduction in income have become the new normal. Whether you’re a business owner, employee, or self-employed, you’re bound to have been affected one way or another by the pandemic.
Here’s how financial planning can help you and your family.
Better physical and mental well-being
Money, especially the lack thereof, is one of the worst contributors to stress. According to a survey, 14.5% of Filipinos associate stress with money, including financial uncertainty, impending bills, and lack of budget. Financial stress is not only burdensome but can be deadly.
It can trigger mental and emotional distress. When stressed, people are likely to engage in unhealthy coping mechanisms, which leads to more health risks. Since there’s a strong link between mental and physical health, your body will also suffer. By doing the necessary work to get your finances in order and securing yourself and your loved ones from unexpected medical expenses, you’re also adding years and greater security, improving your quality of life.
Being financially prepared allows you to cover your household bills and provide for your family's needs. This pandemic, after all, caused grocery shelves to become empty as more people clamored for necessities like food and medications. As a result, shortages and delays in deliveries also occurred. Stock up on supplies and prepare an emergency fund to help you tide over periods of crisis like this.
Furthermore, marriages and familial relationships thrive without the added burden of financial strain. This pressure can sometimes cause conflict between couples. Bickering parents negatively affect any kid's mental health. We’re already living through a crisis! We don't need more problems.