Financial insecurity is on the rise in India, due to mass layoffs, salary cuts, general market volatility and an impending recession.
Many people without full-time jobs face financial pressures from which their more formally employed colleagues are shielded. It eats away at any semblance of peace or a sense of certainty for them.
According to a recent personal finance survey by a media organization, around 69% of households in India are struggling with financial insecurity and vulnerability.
In this context, it is important to understand what financial insecurity is and what are the steps to get out of it?
What is financial insecurity?
Financial insecurity or economic insecurity can be defined as the anxiety produced by possible exposure to adverse economic events, and the anticipation of difficulty in recovering from them, according to a research report, Measuring Economic Insecurity, by Bossert & D’Ambrosio.
A full recovery from the Covid 19 pandemic will not be possible without addressing economic security and reducing inequality, according to a United Nations study. Otherwise, individuals and families who were already facing insecurity before the crisis risk being excluded from the benefits of the recovery. Building resilience to future shocks offers an opportunity to reduce inequality and economic insecurity.
How to get out of financial precariousness?
Try to familiarize yourself with your finances: the majority of our stress related to uncertainty comes from a “fear of the unknown”.
Therefore, whenever you feel a rush of anxiety, try to open your wallet, bank statements, and bill books. By becoming more aware of how you spend your money and why you do it, you will improve your money management and feel more in control of your spending habits.
Start keeping a diary of your finances: Keeping a diary of your spending habits will make you more aware of your spending habits.
Money and Life Freedom Coach Ashish Bhave, CEO of WPH Services, a business success mindset coaching, training and mentoring company, says Ashish Bhave, “Try to put in a journal of your habits and money spending habits in the morning. Not only will you feel better, but the writing exercise will also make you more grounded and practical. It would also eliminate a lot of negative energy and leave more space for clearer thoughts about your finances.
Chat with another person: When you are really worried about a specific financial issue, it would always be a good idea to talk it over with another person, a friend or acquaintance, who has a deep understanding of finance and has a positive mindset. about your problem. This is a good step to resolve any lingering financial issues.
Draw a plan: Having a plan is a necessity, as it might help you find a solution.
Bhave adds, “Overnight, your financial worries may not evaporate, but a solid plan, weighing your money situation, savings, bank balance, opportunities and debt could actually help you in the long run. If you have a financial advisor, you could create a plan with them, and you can stick to the plan religiously and modify it as needed.
Accept your situation; do not compare: A mistake that many people often make is to compare their own financial situation with that of their neighbor or friend. But it is a dangerous habit, as it can lead to depression and anxiety. You must first accept your own situation and believe that your path is unique and different from that of others.
