Financial Stress and Effects

Prolonged financial stress can reduce your IQ

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Today we approach the subject of stress, more precisely financial stress, and the effects it has on the human intellect.

Stress is nothing more than how we react to the demands placed upon us. Unfortunately, stressors (factors that trigger stress) are impossible to eliminate from our lives. What we can influence is the way we relate to these stressors and implicitly to the response that our body feels when it is subjected to stressful conditions.

In the financial world, stress factors are everywhere, and financial stress affects us physically and makes our body sick as a result. There are more and more studies that attest to this. But in addition to physical ailments, there are more and more frequent sources that refer to mental illnesses, including those acting on the human intellect.

Each of us is born with an intelligence potential inherited genetically from our predecessors, this is well-known. This potential is also called native intelligence and does not seem to be stable throughout life, as previously thought, but one influenced by the environment in which the child grows and develops, the concerns of family members, how much the mind is trained since childhood, and the way the child relates to others. Intelligence gained through education is called crystallized intelligence and has a significant influence on the quality of life of the adult.

Both types of intelligence appear to be vulnerable to stress, and a person exposed to prolonged financial stress will suffer repercussions to their level of intelligence.

Recent research shows that chronic financial stress can actually reduce IQ.

In stressful situations, our ability to concentrate and make effective decisions decreases. An IQ of 120 drops to 80 in situations of anger and pronounced stress.

In the book “Scarcity: Why Having Too Little Means So Much,” behavioral economists Sendhil Mullainathan and Eldar Shafir analyzed multiple studies from the past and conducted new experiments to show how feeling deprived causes people to become obsessed with what is rare in their environment — whether it’s time, food, relationships, or money. They pointed out that in times of financial stress people think in a “narrow/limited” manner and this hampers the ability to find creative solutions.

The American Institute of Stress has compiled a list of the most common symptoms of stress, including:

• Difficulty concentrating
• Difficult learning new information
• Forgetting, disorganization, confusion
• Difficulty making decisions

Therefore, it is becoming increasingly clear that “Financial stress overwhelms thinking, making cognitive processes slower and more difficult, as if people are experiencing the effects of sleep deprivation for one night.” Herald & News

In a world economy dominated by the stock market, money represents those contracts that you can win or lose. When the stake is perceived as a major one, financial stress sets in immediately and its effects deteriorate the felt quality of life.

Part of Welthee’s mission is to provide access to quality financial education for all concerned. Most people see a single financial solution, the classic one, in which they work hard as employees in a company, save or take out loans and buy what they need, but that does not equate to prosperity. Prosperity does not come with a degree of being indebted, it does not create emotional and mental discomfort.

Eliminating financial stress can be done by increasing people’s FQ (financial intelligence), which develops their perspectives on the financial segment and gives them new ways in which to create a more prosperous life for themselves.

Welthee aims to present another model, different from the approaches mentioned so far, through which every person can start building on to their own prosperity, as there are more options available than those listed above.

Overcoming financial stress begins with training an individual’s mindset and implicitly the way in which certain “failures”, or certain opportunities, are seen. Because yes, opportunities can actually be a threat if the person in question doesn’t have an essential base of knowledge rooted in financial education and cannot discern between a truly sustainable project or a possible scam.

Financial education develops one’s FQ, leading, in time, to the transformation of investments into money. Or, more specifically, it leads to the identification of real investments and their clear separation from those with a negative potential.

Welthee helps you get rid of financial stress, helps you off of the “hamster wheel”, and helps you overcome the pattern of spending more than you have. Knowing that feeling indebted and financial stress lower your level of intelligence, how do you choose to act in the future? What is your plan for prosperity?

About Welthee

Welthee is a disruptive, zero commission, and up to 0% risk wealth creation platform, that empowers users with access to multiple streams of income, providing an environment where entry-level and experienced investors join forces for the greater good.

Welthee is the Future of Financial Freedom.

To find out more information please visit our website: welthee.com, follow us on Twitter, Facebook, or come and join the conversation in Telegram.

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