Handling Financial Stress

Are you feeling burdened by financial concerns? No matter your situation, there are ways to navigate these challenging economic times, reduce your stress and anxiety, and take back control of your finances.

Understanding Financial Stress

If you’re worried about money, you’re not alone. Many people from all backgrounds are experiencing financial stress, especially during tough times. Whether your challenges come from losing a job, growing debt, unexpected expenses, or a mix of issues, financial anxiety is a common part of modern life. Even before the global COVID-19 pandemic and the economic issues that followed, an American Psychological Association (APA) study showed that 72% of Americans felt stressed about money at least some of the time. With recent economic hardships, even more people are facing financial difficulties.

Like any overwhelming stress, financial problems can seriously affect your mental and physical health, relationships, and overall quality of life. Money concerns can disturb your sleep, lower your self-esteem, and drain your energy. They can leave you feeling angry, ashamed, or scared, causing tension and arguments with loved ones, worsening pain and mood swings, and even increasing your risk of depression and anxiety. You might turn to unhealthy coping mechanisms, such as alcohol, drug use, or gambling, to escape the worries. In extreme cases, financial stress can lead to suicidal thoughts or actions. However, no matter how hopeless things seem, help is available. By facing your money problems head-on, you can find a way through the financial mess, reduce your stress, and regain control of your finances—and your life.

Effects of Financial Stress on Your Health

While we all know that there are more important things in life than money, financial struggles can cause fear and stress to take over your life. This can harm your self-esteem, make you feel inadequate, and bring a sense of hopelessness. When financial stress becomes overwhelming, it can impact your mind, body, and social life.

Financial Stress Can Lead To:

Sleep problems – Worrying about unpaid bills or lost income can keep you up at night.

Weight gain or loss– Stress may lead to overeating or skipping meals to save money.

Depression– Financial difficulties can make anyone feel down, hopeless, and unable to focus or make decisions. Research shows that people with debt are more than twice as likely to suffer from depression.

Anxiety– Financial instability can make you feel vulnerable and anxious, causing symptoms like a racing heartbeat, sweating, shaking, or panic attacks.

Relationship problems– Money issues are one of the most common reasons couples argue, leading to anger, irritability, and loss of intimacy.

Social isolation– Financial worries can push you to withdraw from social activities and friends, worsening your stress.

Physical health issues– Headaches, digestive problems, high blood pressure, and heart disease are all linked to stress. In countries without free healthcare, financial concerns may even cause you to avoid visiting a doctor for fear of more expenses.

Unhealthy coping methods– Stress over money can lead to harmful behaviors, such as excessive drinking, drug use, gambling, or overeating. It may even lead to self-harm or suicidal thoughts.

The Cycle of Financial and Mental Health Problems

Many studies show a link between financial troubles and mental health problems like depression, anxiety, and substance abuse.

1. Financial problems hurt your mental health– The stress of debt or other money issues can leave you feeling depressed or anxious.

2. Mental health struggles make it harder to manage money– You might have trouble concentrating, or lack the energy to deal with your growing bills. Some people may even lose income due to taking time off work because of anxiety or depression.

3. More financial problems lead to worsening mental health– The cycle continues, with money troubles causing mental health issues and mental health issues worsening money troubles.

No matter how difficult your current situation is, there are ways to break this cycle, reduce stress, and regain stability.

Tip 1: Talk to Someone

When you’re facing financial challenges, it can be tempting to keep everything to yourself. Many of us avoid talking about money, seeing it as a private topic. You may feel uncomfortable sharing how much you earn or spend, embarrassed about financial mistakes, or ashamed of not being able to provide for your family. But keeping these worries to yourself only makes the stress worse.

Talking face-to-face with a trusted friend or family member can be a great way to relieve stress. It helps to put things into perspective. The person you talk to doesn’t need to offer solutions or financial help. Simply talking about your concerns can make them feel more manageable.

Being honest about your emotions and what you’re going through can also open up new ideas or solutions that you hadn’t considered. Sometimes, just having someone listen without judgment is enough to ease your burden.

Seeking Professional Advice

Many organizations offer free counseling on managing financial problems, whether it’s dealing with debt, creating a budget, finding a job, or communicating with creditors. Getting advice from an expert doesn’t mean you’ve failed; it’s a smart way to address the situation and reduce your stress.

Opening Up to Your Family

Financial problems affect the whole family, so involving your loved ones can be crucial in turning things around. Even if you take pride in being self-reliant, keep your family informed about your financial situation and how they can help.

Tip 2: Take Inventory of Your Finances

Ignoring bills and bank statements won’t make your money problems go away. The first step to fixing the situation is to know exactly where you stand. Make a detailed list of your income, debt, and expenses over the course of at least one month.

There are many tools and apps to help you track your spending. By understanding your financial situation, you can begin to make a plan and regain control.

Tip 3: Make a Plan—and Stick to It

Once you’ve taken inventory of your finances, it’s time to create a plan to address your money problems. Whether it’s setting a budget, cutting unnecessary expenses, or increasing your income, having a clear plan can help reduce your stress.


Tip 4: Create a Monthly Budget

A monthly budget is essential for staying on track with your financial plan. Include everything from daily expenses to yearly bills and unexpected costs.

Tip 5: Manage Your Stress

While working to fix your financial issues, it’s important to manage your stress. Exercise, relaxation techniques, and a healthy diet can help you cope with stress and maintain your well-being.

By taking small steps and staying committed to your plan, you can regain control of your finances and reduce stress in the long run.

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