by Renae Brumbaugh, MFA September 06, 2020
Managing Financial Stress During COVID-19
In March of this year, more than three million people filed for unemployment during a single week. In addition to the obvious concerns over physical health, Americans are feeling financial stress unlike any that’s been experienced in decades. Many wonder how best to handle this economic crisis. Spending money feels empowering and helps the economy. It also depletes our funds and leads to even more financial stress.
Reduced finances provide yet another layer in the stress and anxiety caused by COVID-19. Any kind of stress or anxiety affects all aspects of our health, and that can domino into more serious issues like lack of sleep, poor diet, and overall depression. While we can’t control many things about this pandemic, there are some healthy steps we can take to ensure our financial stability.
A good first response to financial struggle is to evaluate expenses. Take a look at your expenses, and place each expense into one of the following categories:
The act of categorizing expenses in this way can often bring immense relief right away. Once we know where our money is going, we can easily figure out where to cut costs. Much of the stress we feel comes from not knowing exactly where our money disappears to.
Another way to find relief is to ask for help. This requires us to set aside our pride, and that can be difficult. However, many people are in the same situation. Government aid and local help programs are designed for such a time as this. Those programs aren’t intended for long-term use. They were created to help hard working citizens make it through a difficult time. Don’t hesitate to call your local food bank or other charitable institution and tell them your situation. If possible, offer to volunteer. These places often need an extra hand, and helping others in the middle of your own crisis can be extremely fulfilling.
Ask your employer or bank official for financial advice. They will often know of government aid incentives, such as lowered mortgage or delayed payment for loans. Don’t worry about trying to get out of debt during this crisis. Instead, focus on meeting basic needs for yourself and your family, while not accruing even more debt.
Finally, take a deep breath. This financial crisis may not end soon, but it will end. In the meantime, practice gratitude. When we focus on the things we do have instead of the things we don’t, our spirits naturally lift. We become more settled, more relaxed. And a healthy mindset does more for our wellbeing than a trip to Starbucks.
Want to talk to a counselor today about this?
by Ani Kazarian April 05, 2020
Legal and Financial Planning for People with Alzheimer's Disease
Diagnosed with Alzheimer’s Disease
When diagnosed with a serious illness, it is important to examine legal and financial arrangements and to make plans for the future in light of the present circumstances. When someone is diagnosed with Alzheimer’s disease, this process of examination and planning becomes even more important as the diagnosis is one that carries an expectation of declining mental and physical health.
While being diagnosed with Alzheimer’s disease is a difficult time that calls for many unexpected changes and decisions, it is of utmost importance that legal and financial planning is conducted as soon as possible. There are some legal and financial documents available that can help to ensure that one’s personal wishes, financial decisions, or end-of-life healthcare decisions are carried out, such as a will, living trust, or advance directives. Experts recommend retaining a lawyer when preparing advance planning documents.
Planning with a Lawyer
Every state has different laws, documents, forms, and resources available for legal and financial planning. Lawyers who are knowledgeable on specific state laws can help with legal and financial planning in a way that ensures the person and their family’s wishes are carried out.
A lawyer can assist with:
Advance Healthcare Directives
Advance directives for healthcare are documents that communicate the healthcare wishes of a person with Alzheimer’s disease so that these can be carried out even if the person can no longer make or communicate these decisions. Below are examples of documents that can be used for advance healthcare directives:
There may be other documents in addition to the ones mentioned above that can assist in more particular legal planning for someone with Alzheimer’s disease. It may be best to work with an attorney in preparing legal and financial planning so that documents and possible medical scenarios are not overlooked.
Advance Financial Directives
Advance directives for financial management are similar to the documents mentioned above but pertain to financial planning rather than medical. Financial and statement management documents must be created while the person with Alzheimer’s disease can still make these decisions.
Below are examples of documents commonly used in such situations:
It is recommended that when someone is diagnosed with Alzheimer’s disease, they move into legal and financial planning as quickly as possible. In some instances it may take time to implement these documents or it may be that a person’s mental health declines more rapidly than expected.
There are many variables when it comes to legal and financial planning for people with Alzheimer’s disease, which is why experts recommend moving quickly and working with an attorney.
Sources:
https://www.nia.nih.gov/health/legal-and-financial-planning-people-alzheimers
by Lyle Labardee April 05, 2020
Financial Assistance for Caregivers
Changing physical, emotional, or mental circumstances happen in every family. You may find a loved one in need of additional help with housecleaning, meals, laundry, and personal care. Family caregivers can typically ease the burden for a loved one, enabling them to stay in their current home. While providing care minimizes a loved one’s challenges, caregivers often face their own struggles. Physical and emotional stressors, juggling work and caregiving responsibilities, and limited time for themselves and others are common issues. Additionally, financial hurdles and hardships affect many caregivers too.
Financial Assistance Options
There’s no one-size-fits-all when it comes to caregiver financial assistance. Researching the various programs available might seem daunting. Local Area Agencies on Aging or www.benefitscheckup.org are helpful starting points. Typically, financial assistance programs vary by state and may have restrictions. However, there are several programs that may be available, including: state, veterans, long-term care insurance, and caregiver contracts.
Points to Ponder
While it’s important to research your financial assistance options, there are additional considerations too. Tax benefits, program requirements, and how money is spent are key questions.
Planning Ahead
When acting as a caregiver, it’s important to practice good self-care. Constantly seeing to the needs of others can leave you depleted and hardly thinking of yourself. It’s important to consider your own future as well, both medical and financial.
The benefits of caregiving are immeasurable, both in shared memories and relationship. However, the financial costs are real. Knowing the caregiving options for financial aid can help you and your loved one make informed decisions in the days ahead. Focus more on what matters most by minimizing the monetary strain.
Sources:
http://www.caregivingcafe.com/information/benefits/
https://www.agingcare.com/caregiver-financial-support
Medicare.gov
https://www.caring.com/articles/activities-of-daily-living-what-are-adls-and-iadls
by Lyle Labardee April 04, 2020
Dealing with Debt and Credit Problems
Financial goals are no different than any other life objective you might have. The best chances of success are when your goals are clear and specific. Financial decisions with measurable and attainable steps are more achievable than vague, general resolutions. For example, you’re more likely to succeed when you announce, “I’m planning to pay off my credit card debt by the end of year,” than simply saying, “I’m going to do better with my finances.”
Raising Your Credit Score
Like any major change in life, raising your credit score will take time. The following tips will help you get on the right track to increasing your credit score:
Tackling Debt
There’s no shortage of information available about paying off debt. These strategies offer ways to minimize your liabilities:
When dealing with debt and credit problems, it’s important to start small. Chances are, your debt accumulated over time. Likewise, changing your financial future won’t be a quick fix. As you begin to see success in a few areas, it will build your momentum. A little forward progress might be just the push needed to change your habits and reach your financial goals.
Sources:
http://www.myfico.com/crediteducation/improveyourscore.aspx https://www.mint.com/blog/goals/the-debt-destroyer-menthod-tackling-your-debts-one-by-one-0113/
by Lyle Labardee April 04, 2020
Help with Financial Stress
We know our minds and bodies are connected, but did you realize our bank accounts are linked to them as well? Financial stress can have a significant impact on your physical health, your thoughts, and your relationships with other people.
Physical and Emotional Impacts
Financial stress affects our bodies the same as any other stress. When we experience stress, our bodies go into a “fight or flight” mode. This increases our heart rate and expends additional energy. Financial stress on our bodies increases our risk for heart attack, diabetes, and stomach problems. Strains on our bank accounts can even lead to symptoms of anxiety and depression.
Barriers to Financial Wisdom
The largest obstacle between financial wisdom and lowering our stress is our attitude. In our quest to make the right decisions, we can become afraid of making the wrong one. In turn, we make no decisions at all. Trying something new, and even possibly failing, is better than never making a move at all and continuing our bad financial habits.
Tips to Alleviate Financial Stress
Taking steps to make wise financial decisions can provide some immediate relief as well as motivate you for the long-term. The following tips will help you understand why you make the financial decisions you do and give you the knowledge to alleviate the stress and strain on your wallet:
Financial Tips that Make “Cents”
Good money management gets easier the longer you stick with it. Surround yourself with like-minded people, even if that’s simply by reading books or blogs. Making wise financial decisions will continue to alleviate the stress and strain on your bank account, body, and mind.
by Lyle Labardee April 04, 2020
Daily Money Management Tips
Do you control your money, or is it controlling you? Managing money can be difficult for many reasons. While there is no shortage of advice available to you, it can feel overwhelming when you are deciding when and how to start making smarter financial decisions. You might also feel confused about how to turn long-term strategies into daily habits.
What is Money Management?
Money management is sometimes used interchangeably with the term, budgeting. Quite simply, it is a way to visualize how your money is being spent and how it will be used in the future. Any amount of money after all outstanding bills have been paid is a surplus, and quite literally, money in your pocket. When you extend yourself beyond your means, you enter into a liability, or debt. Money management controls the inflow and outflow in your budget.
Daily Money Management Tips
How do we start controlling our money? By starting today. In order to reach your long-range financial goals, there are small but significant money principles you can apply now. Here are a few strategies to help you with daily money management and make you feel more in control of your financial future:
Applying these simple money-managing tools really does add up to significant change. While money may not buy happiness, using it wisely does alleviate unnecessary strain and stress.
Sources:
http://www.bankrate.com/brm/news/financial-literacy/12-steps-home.asp
by Lyle Labardee April 04, 2020
Managing Finances
With the average American credit card balance at $11,000, there’s no time like the present to start managing our finances. Controlling personal cash flow can be difficult. For most people, the number one problem with money management is they just want more, the higher the amount, the better to support the “buy, buy, buy” culture. The other reason controlling finances can be complicated is due to the wealth of financial information available. Knowing where to start can seem overwhelming.
What is Money Management?
The term “budgeting” is sometimes used synonymously with money management. Budgeting is simply a means to visualize how much money is coming in, going out, and how it’ll be used in the future. After all your bills are paid, any surplus is “money in your pocket.” Extending yourself beyond your means enters you into a liability, or debt.
Financial Management Tips
If your desire is to control your money, instead of the other way around, there are small but significant money principles you can implement now. Here are a few strategies to help you manage your money:
If you’re not in a good financial place right now, it won’t help feeling guilty over the money mistakes you’ve made in the past. Focus on the present and how you can make these simple, small changes to your everyday life. Wise money management will positively impact you and your family’s life and future.
Sources:
http://www.patreasury.gov/assets/pdf/Tips-PersonalFinance.pdf
by Lyle Labardee April 04, 2020
Teaching Kids about Finances
Financial skills are necessary for a successful life, but often people don’t start to learn them until they reach adulthood. Personal finance and making smart financial decisions may not be included in your child’s school curriculum, but kids need to be taught about finances to prepare them for independence. Parents should guide their young ones in sound money management as they have the greatest influence on a child’s financial practices.
Finances and Family
Kids learn by doing. Research has indicated that children as young as three can understand the concept of saving and spending, and that children’s money habits are formed by age seven. Therefore, it is never too early to begin teaching your children about money. While it’s best to not share financial worries with your kids, talking with them about daily money decisions can be beneficial. For example, engage in conversation about what to buy at the grocery store, where you shop, and how you pay bills.
You can also show children how to handle money by implementing some form of an allowance. Not every task should require payment, so it’s good to have kids do some chores simply because they are part of the family. At the same time, paying your child for larger projects around the house can be a teaching tool for money management and helps to develop a strong work ethic. Consider developing a “401” account where you match every dollar they set aside in savings. Their excitement will build as they watch their account double whenever they choose to save instead of spend.
Lessons Through the Ages:
Children are ready to handle the beginning concepts of basic money management from preschool onward. Consider these financial tips through the stages of your child’s development:
Teaching your children about money is necessary and can also be fun. One of the best ways to help them learn is to engage them in the financial decision-making activities in your household. Simply lecturing about good money principles is not nearly as successful as hands-on experience. As an added bonus, you might discover something that will improve your own financial planning.
Sources:
Historic Counseling Center
7791 Byron Center Ave SW
Byron Center, MI 49315
616-499-4711
South Counseling Center
2465 Byron Station Dr SW
Byron Center, MI 49315
616-499-4711