Condusef reveals the health problems that financial stress can cause | Recommendations

Controlling personal finances also impacts health, according to the National Survey on Financial Health (ENSAFI) 2023, an instrument that measures the financial health of the population aged 18 and over in Mexico.

CONDUSEF points out that financial health is the state that enables people to manage their finances appropriately to meet daily and unexpected expenses and deal with negative variations in income flows, as well as achieve their goals and take advantage of opportunities to achieve well-being and economic mobility.

The measurement was based on a 10-question scale to measure the health or financial well-being of the population, which resulted in 52.8 points out of 100.

Mexicans without money at the end of the month

The survey found that the 45.9 percent of the population said they almost never or never have money left over at the end of the month. In fact, 34.6 percent mentioned that they have little or no capacity to face unexpected expenses.

In short, just over half of Mexicans said that little or nothing guarantees their future, and that they feel little or no peace of mind regarding the adequacy of their savings.

This situation affects the population not only economically, but is also associated with health problems due to the impact of poor financial health.

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Financial worry and stress

The lack of tools to deal with unexpected expenses, combined with the accumulation of debt, is a cause for concern for Mexicans.

ENSAFI reported that 36.9 percent said they had high financial stress, with women being the ones who said they had the most stress.

34.9 percent experienced physical consequences such as headaches, gastrointestinal disorders or changes in blood pressurewhile 30.7 percent also spoke of suffering psychological impacts such as sleeping or eating problems.

An uncertain economic situation can generate financial stress that, when it becomes chronic, can trigger various health problems.

According to Houston Methodist, chronic stress significantly increases the risks of heart disease, diabetes, obesity and other chronic diseasescan even cause sexual dysfunction and hair loss.

How to identify it?

According to the Ministry of Finance and Public Credit, these are signs of poor financial health:

The 2022 Financial Wellbeing Report prepared by Invested and allies, indicates that 62 percent of Mexicans do not really know what assets they have52 percent said they did not know how much their monthly expenses were and 72 percent said they did know how much they owed.

Furthermore, regarding the debt outlook, 41 percent spend between 20 percent and 50 percent of their income on debt repayment.

“Financial stress is not a problem that should be minimized, ignored or postponed; it must be tackled decisively and an ‘Action Plan’ established, which includes a significant change in habits,” says the Treasury.

Causes of financial stress

There are factors that cause financial stress that may not be under personal control, such as income perception. Having an insufficient income stream is a cause of worry and financial stress.

The population surveyed indicated that, on average, they consider that the income needed to cover expenses it was of 16 thousand 421 pesosHowever, the amount also varied by area.

The inhabitants of Mexico City They indicated that they required at least 29 thousand 500 pesosin New Lion reported 23 thousand 500 pesos necessary while in Chiapas They mentioned that with 7 mil It was enough and in Tlaxcala 8 thousand pesoson average.

However, this is a somewhat far-fetched picture, since according to Statista, in 2022 there was a decrease in the average annual salary of Mexican workers compared to the recorded period (2000-2022).

The National Survey of Occupation and Employment carried out by INEGI in the last quarter of 2023 showed that The average salary of a Mexican is around 7,380 pesos, Taking into consideration that the economically active population was 61 million people.

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Also, consider that the labor market conditions They are influenced by the educational level, worker training, type of sector, work experience, among others.

The job loss It can also lead to economic instability and a significant increase in stress.

Among the causes that are under the control of the Mexican is the lack of a budget or record of expenses which can lead to poor management and debt.

He insufficient income It is linked to the complications that prevent Mexicans from being able to save, however, it is also associated with a poor financial education which brings with it bad habits and savings habits, or lack of knowledge and distrust in financial institutions.

Savings would also allow you to deal with unexpected expenses such as car repairs, home repairs, health issues and other emergency situations.

How to improve financial health?

Even if your income is not very high and the debt cycle seems to never end, the following keys will help you begin to achieve good financial health within your individual possibilities.

1. Make a budget

According to BBVA, it is a way to improve the use and control of your money as it helps you determine how much to spend and save in a month to create a feeling of peace of mind when the time comes to pay bills.

2. Beware of debts

If you have a lot of debt, put it on your priority list and pay it off little by little without sinking further into debt. It is recommended that you do not spend more than 30 percent of your income on debt repayment.

3. Fumigate the ant expenses

Avoid unnecessary purchases and those that seem small but in the long run add up and add up to much more than you would think. Reduce the number of cravings and purchases outside the home, subscriptions that you do not use much. Having a spending limit according to your budget will help you not to overspend and harm your financial health.

4. Use credit to your advantage

Don’t think of your credit card as an increase or extension of your earning capacity. Learning how to use it will give you benefits and you may even be able to reduce expenses.

There are some cards with advantages that can greatly benefit you with rewards such as points, cashback or performance just by having your money saved in a certain account.

5. Create an emergency fund

Take a look at your budget and determine how much you can save to cover unexpected expenses and avoid financial stress.

Remember that saving is not about saving money that you have left over; instead, it means setting aside a specific amount for your emergency fund. Also, try not to touch those savings or borrow money that you will later replenish.

Implement these strategies to begin to have control over your finances. This way, you will develop healthy habits that reduce financial stress and improve your quality of life through resilience, proper planning, and achieving financial goals.