Don't let debt stress give you sleepless nights

The finance minister's budget speech is always a wake-up call, to take note of the quagmire that is personal finance.

What is important, though, for those who have more going out than coming in, is the inevitable consequence on the body and mind: stress.

And as we all know, stress is bad for our health, both physically and emotionally

"The emotional side of being in debt is the worst of the entire debt situation," says Jo-Anne Bailey, a director at Franklin Templeton Investments.

"The stress of going to bed at night and thinking of how you will make it to month-end, can you provide for the family ... the psychological effect of that has a big impact on health. It is something that stays in the mind constantly, the blood pressure spikes every time you worry.

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"As nice as lovely things are, nothing is as lovely as avoiding the heart-racing feeling of financial worries," Bailey says.

What feeds the debt trap for many of us is the apparently irresistible desire to spend - on fancy cars, on trendy brands, on all that shiny stuff the adverts persuade us we can't live without.

"When you go to bed at night, do those things help you sleep?" asks Bailey. "Or do you feel you don't have peace of mind?" Almost certainly the latter.

"When we look at people's investments and monetary demands, we can see how skewed their budgetary spending is," she says. "Many people have very low home loans and very high car payments. A car is not the best investment, it is an asset which won't give you a big return.

"In truth, you should be putting that money into your property and savings."

At this point some of us who live by the instant-gratification creed will wail: But what about living in the moment?

"People forget how long life is, and if you stick to short-term views of what you have now, you aren't able to see yourself in the long term," says Bailey .

And don't think you can spend your way out of stress by splurging on a get-away-from-it-all holiday. Exciting experiences are fine, says Bailey, "but so much more fun if they aren't going to put pressure on you and cause strain down the line.

"The question still remains - are we trying hard enough to save? One fundamental mistake all people make, is to focus on labels and cars.

"The other mistake is to think that money comes easy; very few people win the Lotto or suddenly make millions from selling shares, the rest of us have to work really hard."