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Even as I am writing this, China the economic miracle and engine of global economic growth for more than two decades is experiencing a slowdown for 2016 and likely beyond. At the start of the year, the Chinese stock market (Shanghai and Shenzhen Stock Exchange) dipped so badly (by 7%) that it triggered something akin to an electric circuit breaker that stopped all trading. Markets in London (LSE), New York (NYSE), Sydney (ASX) and around the world dipped badly as traders panicked.
As a mental health professional, why am I talking about the economy and stock market? As the subject goes, "About Money", I must say and repeat, almost everything is about money. Having been trained an accountant, money does matter. The above first paragraph is evidence that year 2016's global economic outlook is not in good shape. It is out of shape. According to economists and CEOs, global recession is imminent1,2,3.
Still, what has it got to do with mental health?
A recent survey by American Psychological Association (APA) called Stress in America™: Paying With Our Health, money is reported to be a top cause of stress for Americans. The result of this survey can be extrapolated to everyone on this planet earth regardless of creed, color and gender. Parents, generation X and millennials are the groups of people who have expressed that money is a somewhat or extremely significant source of stress. Lower income households revealed higher overall stress level compared to those higher-income households.4
The biggest stress about money is debt.
The average parents, generation X and millennials will have at least two debts from these categories - mortgage loan, car loan, personal loan, education loan, hospital debt and credit card debt.
With recession comes company downsizing where many will lose their jobs. Not having a job means no income until the next job. Yet, the cruel fact is that loans and debt will continue demanding from one's wallet or bank account. The prospect of losing one's house, car or being made bankrupt is both probable and possible. One can imagine the magnitude of stress that will come out of these circumstances.
Being aware of one's financial standing and obligations is not only paramount to good financial management practice but will help to minimize if not avoid financial surprises that will cause significant levels of stress.
Holding on to the following advice from the world's best investor would do good.
When you buy something that you don't need,
you will soon have to sell things that you need.
Warren Buffet
you will soon have to sell things that you need.
Warren Buffet
by Aloy L. Counsellor, Author, Speaker. He has rigorously trained in counselling and psychotherapy, served full-time in ministries, and worked businesses on solid principles. His calling and mission are to counsel, write, and speak Hope to all.
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Reference:
APA., (2015). American Psychological Association Survey Shows Money Stress Weighing on Americans’ Health Nationwide. American Psychological Association. Website: http://www.apa.org/news/press/releases/2015/02/money-stress.aspx
Pento, M., (2016). US Markets: A recession worse than 2008 is coming. CNBC LLC. Website: http://www.cnbc.com/2016/01/15/a-recession-worse-than-2008-is-coming-commentary.html
Shaffer, L., (2016). Economy: Citi: Risk of global recession rising. CNBC LLC. Website: http://www.cnbc.com/2016/02/25/citi-risk-of-global-recession-rising.html
Zumbrun, J., (2016). US ECONOMY: Economists, CEOs: Recession Risk Rising. The Wall Street Journal. Dow Jones & Company, Inc. Website: http://www.wsj.com/articles/economists-ceos-recession-risk-rising-1455237811