Healthy Finances, Healthy You
August was an amazing month for the stock market. I don’t how long this ride to the top is going to last but the market continues to beat the odds and prove the experts wrong. And just in case you haven’t been keeping track, the S&P 500 has hit 53 new all-time highs so far this year.
At this point I feel bad for anyone waiting (about 12 years now) for this bull market to end before they invest. No one knows when the market is going to rise or fall. Remember, it’s not about timing the market, it’s about “time in” the market (and consistency). I also learned a few things in August that I’ll share along with my August net worth update.
What is Chrematophobia?
Chances are you know someone that works really hard to avoid any and all conversations around money and has a ton of anxiety around all the moving parts that make up personal finance, like earning money, saving money and spending money. There’s a chance they (or you) may have a condition called Chrematophobia.
Chrematophobia is a extreme fear of money and dealing with financial matters. And turns out, everyone is at risk of suffering from this condition. Adults of any age can get chrematophobia as soon as they start earning money. But the condition seems to mostly effect poor and lower middle-class earners because they often worry they may not have enough money to spend in the future. Also, individuals that already struggle with anxiety and emotional disorders are more prone to suffering from chrematophobia than others. Here are a few of the symptoms:
- Feeling powerless to manage their money
- Being socially withdrawn and refusing to participate in activities to avoid spending
- Might refuse to see a doctor or dentist, to avoid spending money
- Constantly counting money
- Often depressed and anxious about earnings and/or spending
- No knowledge of their income (complete avoidance of personal finances)
Chrematophobia can be very debilitating but all is not lost for individuals that may suffer from it in varying degrees. Experts agree the best way to tackle this phobia is quickly and head-on with small, consistent progress and remembering to always focus on how far you have come and never on how far you have to go. Therapists agree that not everyone will be able to overcome this disorder on their own and should seek professional help, if necessary.
“The first wealth is health.”- Ralph Waldo Emerson
Did you know that improving your financial health would also improve your mental, physical and emotional health? Below are the conditions made worse by financial stress:
- Heart Disease/Attack are exacerbated by debt stress. A Northwestern University study showed that adults ages 24–32 with high debt had higher diastolic blood pressure. This is an age group that should normally be in optimal health. And for older individuals with debt the health consequences can be devastating.
- Gastrointestinal Problems: More than 27% of those with high-debt stress reported having ulcers or other digestive tract problems, compared to just 8% without.
- Depression symptoms increase 14% with every 10% increase of personal debt.
- Individuals with poor financial health are 60% less likely to exercise regularly.
- Forty-four percent of individuals with debt stress report having migraines compared to just 15% without debt stress.
Hopefully, these statistics will encourage you to improve your finances and build the financial stability you deserve. Below are a few free resources to help you get started on your journey to getting rid of debt and building the wealth you deserve.
- The Compound Effect
- Five Rules to improve Your Financial Health
- Getting Rich: From Zero to Hero in One Blog Post
Okay, time for the August net worth update…
Checking $ 500.00 (no change)
Savings $ 6,060.00 (+$30)
Business $ 33,800 (+$700)
MM/E Fund $ 32,779.00 (+$761)
Taxable Investment Accounts
Ally Brokerage $ 40,871.00 (+$1591)
Investing MM $ 100.00 (+$100)
Vanguard $ 5,466.00 (+$707)
Acorns $ 2,769.00 (+$87)
SEP IRA $17,430.00 (+787)
Bonds $ 21,916.00 (+$336)
Traditional IRA $ 52,458.00 (+$1,060)
Liabilities: Credit Cards: $0.00
- Credit Card: I was very thrifty in August, spending only when necessary. My plan is to keep my spending in check for the rest of the year.
- Checking: I picked up extra gig work last month and I didn’t remember until the check appeared in my account this month. I’ll be transferring a portion to my tax fund and the rest will be used to purchase stocks.
- Savings (P to P): I managed to control my impulse to constantly save and so only the automatic deposit that keeps the account free went in.
- Traditional IRA: The market was really high in August, so I didn’t add a new position yet.
- Business Account: I moved money into my brokerage accounts this month. However, I’m still looking to diversify out of stocks.
- The E/Fund: This account continues to grow undisturbed. Hopefully, the Fed will raise rates and this account can earn enough to keep up with inflation.
- Ally (taxable)brokerage: This account is finally more than $40K. I’m working to hit $50K by year end.
Remember, it is a fight to build wealth no matter where you are in the process. Everything around us conspires to take money out of our hands. But you must fight the good fight. Continue to save, invest, and grow your net worth even when it seems impossible. Save your pennies (copper) until they become dollars (cotton).