Debt Free

It's kind of a Catch 22, really. This problem can both cause your financial ruin and be caused by your financial problems. In fact financial problems are one of the primary causes of the problem. It's seen throughout the world, and experienced by people of every income level. Some would say that those with higher incomes actually experience it more, and, in fact, are actually motivated by it. It's all over the news media. The problem is stress. No doubt you've experienced financially induced stress. Just about everybody has. Weather it's wondering how your going to pay a sudden, unexpected bill, or you're on the ragged edge, and experience financially related stress every waking minute, financial problems are one of the most common stressors in today's busy world. The following says nothing of the health related consequences of stress. These in and of themselves can be huge.

Weather you suffer from panic attacks brought on by stress or stress just intrudes here and there into your psyche, it adversely affects your performance. It can cause poor financial decision making and job performance that will end up costing you money. The irony is, obviously, that this is a vicious cycle. Stress contributes to poor decision making, leading to poor results and possible financial problems. These financial problems can lead to more stress, and the cycle perpetuates itself. In extreme cases, stress can even lead to job loss. Paradoxically, many people indicate their job, and the fear of losing it, is one of the largest stressors. The drive to extract the maximum amount of output from the minimum amount of labor that is so prevalent in today's workforce also contributes mightily to the stress experienced by so many employees.

In many cases, stress boils down to the fact that many people feel like they have little control over their situation. This can be true both at work and, to a lesser extent, at home. In many cases, the fear is well founded, especially with respect to work. In both the private, and to a lesser extent, the public sector employee shift is quite common, due to budget cuts, down sizing, mergers and acquisitions, poor corporate performance and outsourcing. Your job could vanish through any one of these means, with little warning, and no matter the level of your performance. Hell, over 200 Tandy Corp employees in Texas were just informed in a corporate email that they no longer had a job. It makes you not want to know “You've got mail.”.

The key to minimizing stress related financial problems (vs. financial problem related stress) is to stay objective and make rational and informed decisions no matter your stress level. That will help keep you away from the vicious cycle, or “death spiral” you can otherwise be sucked into, where poor decision making leads to more stress and soon, the inability to make rational, effective decisions.

Things you can do at work to avoid stress:

• One of the largest causes of work related stress, outside of the fear of actually losing your job, is having a rigid, tightly defined schedule you must adhere to. See if you company will let you take advantage of flex time or other flexible schedule option. This way, you can shift your commute to a less stressful drive time, get errands handled, and generally fit your work around your life, instead of the reverse. Basically, it will improve the overall balance in your life.

• Take advantage of any training programs offered by your employer. This will make your job easier, increase your worth to your employer, possibly your income, and may make you more attractive for promotions and advancement. All things being equal, the increase in your firm's HR investment in you will make you less likely to be eliminated or passed over, and make your job more secure.

• Avail yourself of vacations. With the exception of jobs where you find yourself coming back to face a severe work overload, the time away is beneficial to recharge your batteries. Many people don't take the vacation they're eligible for. According to a recent UN study, American workers work more than in most industrialized countries. Among EU member nations, only Sweden and the Slovak Republic work more annual hours, while employees in countries such as Italy, France and Germany work hundreds of hours less per year. In France, that bastion of socialism, the slackers put in an average 262 fewer hours at the job in 2001 than US workers. Ireland wasn't too far behind in the “take it easy” index, staying away from their jobs an average of 231 hours more than those in the US.

• Make yourself indespensible to your boss. This doesn't mean kiss his/her ass, either. It means exceeding their expectations, and going the extra mile. It's also important to manage your boss's expectations so that they are not asking the unreasonable of you.
  

If it is stressful to worry about your source of income being taken away, you need to use the same strategy you use in your investments; diversify. If you diversify your sources of income by creating multiple income streams, you'll be less dependent upon you primary income stream. In time, some of your secondary and tertiary streams may even eclipse your primary income. As a side benefit, you'll now have a much greater income level than before, which will definitely ease your stress.

You can start a side business, but choose it carefully so that the source of your secondary income doesn't turn into a source of the same stress you sought to avoid. There are many ways to earn additional income, depending upon your skill set and talents. It's important to choose something with low barriers to entry and little initial investment. You can do some consulting, writing, sell on eBay, start an on-line affiliate business, or try your hand at real estate investing (the last one might not be the key to reduce your stress though).