Episode 066 – Financial independence and what it can mean for your mental health | Alex
Hello good people! In today’s episode, we talk with Alex about some very interesting topics about personal finance and mental health, and how they correlate with each other. We address questions about how to manage stress from expenses, finance management and scarcity. Sit back and enjoy it!
We also talk about:
- Escaping the scarcity mindset
- Citizens Advice Bureaus
- Value perspectives
- Sleep/meditation apps
- Impulse purchases
- Automated budgeting
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Financial independence as an antidote to mental stress
Alex is 31, lives in Kent, UK and is a psychiatric nurse. In his position, he has seen a lot of mental stress issues being caused by financial matters: as an FI practitioner himself, he soon realized that financial independence can actually prevent many of these issues by giving a lot more freedom in the management of finances and most of all of the time, the primary resource that can’t be renovated. In this regard, burnout from very stressful work routines is one of the worst issues, and avoiding it can work as a huge motivator in seeking FI.
How financial worries can affect mental health
In Alex’s experience, about 80 percent of the mental issues he has encountered are at least partially related to a financial condition. Financial worries exacerbate stress, anxiety and depressing thoughts., and all of that can lead to losing control of finances, even more, making it extremely difficult to manage. Alex tries to provide education in this regard and helps put each problem in the right perspective.
Budgeting techniques for avoiding stress
If financial independence represents a goal that can remove a great part of our worries, in our day-to-day personal finance management we can implement some techniques that can greatly reduce our stress. An example is saving in advance for larger purchases like Alex does with his “fleet fund” for purchasing and maintaining vehicles. There are many simple steps that can help to avoid panic, and Alex recalls three simple principles that guide his budgeting activity: 1. avoid debts 2. Spend less than what you earn 3. Invest the rest.
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