Relationship of Financial Planning, Financial Stressors, and Financial Satisfaction; The Moderating Role of Financial Self-efficacy

Abstract

With the ever-increasing inflation in the country, people are always stressed about their expenses which often leads to increased financial stress and low financial satisfaction. Financial stressors and decreased financial satisfaction cause low quality of life and significantly impact the overall family especially the marital relationships which in some cases leads to divorce. Due to high living expenses and increased financial stress people are forced to work overtime which causes detrimental impact on the health of the individuals. The purpose of this research is to determine whether financial self-efficacy or the application of financial planning techniques can both increase financial satisfaction under the same types of financial stressors. Financial stressors, financial planning, financial satisfaction, and financial self-efficacy were all examined in the study. The goal of the study is to comprehend how these variables interact and affect a person's level of financial satisfaction. In this study, the hypothesis is tested using a quantitative method. The 28-question survey was created by carefully implementing the scales found in published works. Women who were actively earning money online through platforms like Facebook, YouTube channels, freelance websites, and e-commerce, among others, were given a survey in order to gather credible data for the relationships among financial planning, financial stressors, financial self-efficacy, and financial satisfaction. These findings highlight the beneficial relationship between financial planning and people's level of financial satisfaction. A well-rounded approach that reduces uncertainty and increases financial satisfaction can be implemented by people through budgeting, goal-setting, and efficient spending management. However, there was shown to be a negative correlation x between financial stressors such as debt or unforeseen expenses and financial satisfaction. Improving a person's financial satisfaction requires skillfully handling and lowering these stressors. A significant discovery from this study is the moderating function of financial self-efficacy. Individuals with higher financial self-efficacy are more likely than those with lower levels to accomplish their goals and deal with financial challenges in an effective manner. It has been observed that financial self-efficacy reduces the detrimental effects of financial stressors, which eventually raises financial well-being and satisfaction. This study emphasizes the need for a thorough financial planning strategy, identifying and resolving financial stressors, and taking up the empowering impact of financial self-efficacy in order to improve financial well-being and satisfaction.