De Volkskrant, a Dutch daily newspaper, recently wrote an interesting article about how financial problems happen to us and how we respond to them. In Belgium, too, it can be interesting to go deeper into the psychological causes and consequences of financial problems. How do we deal with our financial problems? Do we see it coming? What is their impact on our financial and emotional well-being? There is more to financial problems than you might initially think.
Can you see money problems comings?
Do people run into financial problems faster today? On the one hand, many families lost part of their income due to the corona crisis. On the other hand, housing costs have skyrocketed in recent years, while wages have not increased at the same rate. After all, through social media and targeted online ads, we are constantly bombarded with advertising for things we supposedly need. We buy it in a few clicks and the parcel deliverer is at your door faster and faster. Did you buy items with a credit card? Then you will not receive the statement until later and you are not immediately aware of how much money you have already spent. Or maybe you have a buying addiction?
Whatever the reason for your financial troubles, most people don’t see those money troubles coming. This is often due to over-optimism, because no one expects or wants to see that something like this can happen to us. Does it happen to you? Then most people tend to ignore their financial problems. They hope that those problems will go away on their own, but in the meantime they will only get worse.
Did you know that money problems also have an emotional impact?
Money problems don’t just have a financial impact. They also cause tensions on an emotional level. People who try to ignore, hide or actively deny their financial problems live with financial stress. In the back of their minds, they live with the constant fear that their financial problems will soon see the light of day. What will others think of them? This causes them to sleep less and worry more. The result? They are stressed and fatigued, which makes them less wise to make decisions. This way they end up in a downward spiral.
In addition, financial problems can also strain your relationships with others. For example, when a friend cancels a dinner or a café visit last minute, it seems like your friendship is watering down and she doesn’t want to make time for you. In reality she might want to meet up, but she doesn’t dare to tell you that her budget currently doesn’t allow such outings.
Dare to ask for help
Since money problems have a huge financial and emotional impact, it is important to face these problems quickly. Afterwards, you must dare to take the step to ask for help. That is not easy, but you should take this step as soon as possible.
By talking about your financial challenges, you can find a realistic solution. For example, you can go to your local Public Centre of Social Welfare (PCSW: OCMW in Flanders, CPAS in Wallonia) for budget management or debt mediation. The Centre examines your spending pattern and draws up a budget together with you. In addition, you can also discuss a payment plan for your debts with your judicial officer or creditor. This way you avoid reminder costs and the possible initiation of legal proceedings against you for non-payment.
Once you communicate honestly about your financial challenges, you will also be able to count on understanding form people around you. For example, expensive meals or shopping days can be replaced by activities that cost almost nothing, but are just as fun. Just think of a cozy coffee or fun movie night at someone’s home.
Do you save for a rainy day?
If the corona crisis has taught us one thing, it is that anyone can end up in financial trouble. Therefore, we must prepare ourselves for unforeseen circumstances. The first step? Start an extra rainy-day fund. When adjusting your spending pattern and giving yourself a realistic budget, it is important to include a monthly savings budget as well. As soon as you receive your salary, you immediately put that money aside. Try not to nibble on it in between, but save it. You will need this if you have to incur an unforeseen major expense or lose your job.
So, don’t overestimate yourself or your situation. Prepare yourself. This prevents money stress and keeps you mentally strong to face your financial challenges and discuss them with your environment and social worker.
Are you struggling with structural financial problems?
Are you short on money every month? Are your debts piling up? Are your financial problems structural? Then contact your local PCSW as soon as possible. They can help you with budget management, debt mediation or a collective debt settlement.
Do you have several debts with different creditors, but you do not know where to go for help? One is a digital communication and mediation platform on which Belgian PCSWs and judicial officers are active. One will work with you to find the best solution. The target? Reduce your debts. Depending on your situation, One also guides you to the right assistance.
All judicial officers and employees at Modero know that financial problems can happen to anyone. Do not hesitate to contact us. We are happy to listen to your situation, so that we can find a suitable payment solution together with you. Modero is always available with professional advice. Contact us via info@modero.be or 03 237 37 37.