How Personal Issues Can Impact Your Financial Well-Being and How To Do Damage Control

Tommy Wyher  |


Various outside influences have an impact on our financial well-being whether it is a fluctuation in the stock market or a personal issue. Personal issues can usually be controlled to a point while things like the stock market cannot. Letting a personal issue destroy your financial well-being depends on the reaction you have to the issue. Panicking rarely will help in these types of situations so understanding your options is imperative. Sitting down and writing these options down can allow a flustered person to make the best financial decision for them. The following are personal issues that can impact your finances as well as damage control tips.

Medical Bills Cause You To Take A Loss On An Investment

Medical bills can be enormous depending on what type of treatment, surgery, or even medications that are needed. Preventative measures are usually the best course of action as people with health problems need to find insurance as otherwise they could cripple themselves financially. If these bills have already been incurred it is important to ask the hospital or doctor if they have payment plans available. Do not sell something then take a loss on the investment as this will hurt you even further financially. At the end of the day the hospitals and doctors are usually willing to work with a patient as they do want to be paid in the most timely manner possible.

Loved One Needs Home Care

There might come a time where a loved one needs extra care at home but in no way wants to leave their current living situation. This can lead to a person having to quit their job or put copious amounts of money into this home care. The best thing to do in this situation is to look for state and federal programs that can help. CDPAP is a program in New York that allows people who have Medicaid to choose a family member to help them with their home care. The issue most people have with home care is that of a stranger coming to help daily but this quells this type worry. There is help for those that need help via government programs so keep this in mind and do research. Finding a program like the one mentioned above can solve this problem permanently thus reducing financial stress on you.

Unexpected Loss of Job

A loss of a job for any reason can be devastating to a person’s financial health. Most jobs that are lost are lost unexpectedly so make sure to keep aside extra money monthly in case of an emergency. The freelance economy has made it as easy as ever to earn money from home so this can help soften the blow. Find a freelancer platform and use your skills like that of writing or being a virtual assistant to keep your finances healthy until you find a new job. The last thing that you want to do is turn to unhealthy coping measures like that of substance abuse. This can put you further into financial trouble and cost you everything that you have worked hard for.

Divorce Has Put You Behind On Bills

A divorce can be stressful for emotional reasons but it is also a strain for most people financially. The hard truth is that most people are going to need to downsize their current living accommodations. If child support is involved this can be as much as a mortgage payment depending on factors like income level and number of children. This is the time to take a real assessment of your current finances to see where money can be saved. Otherwise this could spell disaster if you get behind on a mortgage, rent, and especially child support. Things like downgrading a car can allow a person to generate extra cash as well as save money monthly on their insurance premiums.

Personal issues are going to impact your financial health but it is important to deal with these things immediately instead of putting them off. Problems are not going to go away on their own so keep this in mind when you encounter one of the issues mentioned above.

DISCLOSURE: Authored and edited by Tommy Wyher.


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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