Most financial writting is opinion, not fact, which is a problem when you’re recomending things to clients.  Do they try debt consolidation? Payment Arrangements? Or Debt Agreements?  However there is some good research emerging on consumer finance and financial counselling.

One excellent study looked at “behaviours” in financial counselling clients and  found there were 4 “behaviours” associated with having low financial stress.  (“Financial behaviours of consumers in credit counselling”, Jing Jian Xiao, Benoit Sorhaindo, E. Thomas Garman)

1. “make plans on how to use their money”
2. “write down how money is spent”
3. “evaluate their spending on a regular basis”
4. “Use a written budget”

A recent Wesley Mission Report found that financial stress is associated with “adverse relationships with your spouse,” “problems with family members,” and, “the inability to think clearly”.  Their reseach had several financial indicators that were associated with significant adverse effects on family relations.

• Being unable to take a week’s annual holiday away from home;
• Inability to afford a night out once a month;
• Inability to pay a utility bill ontime;
• Seeking financial assistance from family or friends.

If you’ve experienced any one of these indicators or you’re experiencing financial stress maybe it’s time to try these behaviours.  In the coming weeks I’m going to work on implementing these. I’m going to record my expenses. Evaluate my spending. Make plans on how to use my money and use a written budget.  It’s called the Financial Freedom journey and it’s about to kick off!