Your bank balance is low; your bills are piled high, and so is your anxiety. Here is a truth bomb we all need to hear: managing personal finances is a critical skill to learn in life.
For some people, it's a matter of fulfilling both wants and needs, and for others, it's a matter of survival. Other than being able to keep a roof over your head, here are some reasons why you should care about managing your finances.
Your Health and Wellbeing
Over a thousand U.S. adults were asked to discuss their feelings about their current financial situations. One of this report's key findings was that Americans are worried about their financial future via The Mind over Money Study.
– 68% stress about not having enough money in their savings to retire – 56% worry they cannot keep up with the cost of living – 45% feel stress managing debt
Survey respondents also admit that financial stress affects other areas of their life.
– 43% feel fatigued – 42% find it difficult to concentrate at work – 41% say they don't sleep well because of their financial burden
Furthermore, financial stress can have a considerable impact on relationships. According to a survey by The Cashlorette, 48% of American survey respondents who are married or living with someone say they argue over financial matters.
TD Ameritrade confirms this with data stating that 41% of divorced Gen Xers and 29% of Boomers say they ended their marriage because of disagreements over money.
Your Credit Score
Maintaining a solid credit score and a good credit report can help you pass a credit rental check to rent a nice place to live, obtain a lease, a mortgage, or financing. Watching your credit card debt is equally vital as it helps build your credit score.