Financial stress is a significant concern for many Americans, with recent studies highlighting its impact on mental and physical health.
A survey by the American Academy of Sleep Medicine reported that 87% of individuals have lost sleep due to financial worries, with one-fifth stating they “almost always” lose sleep over money concerns.
So, if you’re worrying about money, you’re definitely not alone! But, in reality, this isn’t just about numbers in a bank account; financial stress can take a serious toll on your mental and physical well-being.
When every trip to the grocery store or unexpected bill brings a wave of panic, it’s time to acknowledge that financial stress goes beyond the money. It also becomes a health problem.
So, what can you do about it? Why are you struggling? Let’s dig in.
Why Am I Always Struggling Financially?
Financial struggles rarely have a single cause. A perfect storm of factors often creates ongoing money stress.
1. Rising Cost of Living
For instance, rising costs of living have outpaced wage growth for many Americans (and Canadians).
Basic necessities like housing, healthcare, and food now consume a larger portion of monthly income than in previous decades. The Federal Reserve reports that 37% of Americans would struggle to cover an unexpected $400 expense.
2. Lack of Financial Education
Lack of financial education also plays a major role.
Many people never learned basic money management skills in school or at home. Without understanding budgeting, saving, and investing fundamentals, it’s easy to fall into cycles of debt and financial instability.
3. Economic Uncertainty
Economic uncertainty and market volatility create additional pressure (gotta mention COVID here! We all felt it then, but these financial issues and concerns continue today.).
Job insecurity, inflation, and retirement savings concerns leave many feeling helpless about their financial future. This anxiety often leads to decision paralysis—when you’re stressed about money, it becomes harder to make sound financial choices.
Financial stress triggers the release of cortisol and other stress hormones.
This chronic stress response can lead to:
- persistent anxiety and depression
- sleep problems
- a weakened immune system
Many people experience digestive issues, increased risk of heart disease, relationship conflicts, and reduced work productivity as a result of ongoing financial worry.
In other words, being stressed out about our finances could actually be making our finances worse!
So, what can you do about it?
4 Ways You Can Relieve Financial Stress
While money problems can feel overwhelming, there are concrete steps you can take to regain control of both your finances and mental health.
1. Seek Professional Support
Acknowledging the emotional impact of financial stress is important, but getting professional help can feel like an added expense.
If you have health insurance, check your benefits—many plans cover mental health services, including therapy for financial anxiety. Some employers also offer Employee Assistance Programs (EAPs) that provide free or low-cost counseling sessions.
For those without insurance or limited coverage, many therapists offer sliding scale fees or telehealth options, making mental health support more affordable.
A certified financial planner or counselor can also provide guidance tailored to your situation, helping you:
- create a realistic budget
- develop a debt repayment strategy
- plan for long-term financial stability
Many non-profit credit counseling services offer free or low-cost consultations, making financial advice more accessible. Taking advantage of these resources can help you regain a sense of control over both your finances and your mental well-being.
Related Article: What Are the Four Types of Stress and How Can You Gain Control Over Them?
2. Invest in Financial Education
Knowledge is your greatest asset when it comes to managing money. Take advantage of free resources, such as:
3. Build Healthy Money Habits
A. Build a realistic budget.
Start by tracking your spending for at least one month to understand where your money goes.
Then, create a realistic budget that includes savings, and consider automating bill payments and savings transfers.
Review your expenses regularly to identify areas for reduction. For example:
- Do you really need to spend $40 a week on takeout?
- Are you using your gym membership that charges you monthly?
- Can you turn your heat down? You could save 1-3% on your bill for every 8 hours you go down 1 degree
Being on top of where your money goes will make it WAY more likely you can stay in control of your finances.
B. Avoid impulse purchases
Give yourself a 24-hour rule for non-essential items.
No matter how much you want something, you need a cooling off period of 24 hours before you can buy it. You’d be surprised how many times you forget about it or decide you don’t really want it.
C. Pay yourself first.(This is life-changing!)
Before covering bills or discretionary spending, set aside a portion of your income for savings, investments, or debt repayment. Treat this like a non-negotiable expense—just as you would rent or utilities.
You could also set up different accounts for different categories, and by payday, you can place the amount of allocated money in each account.
For instance, for fixed expenses (like rent, your phone, internet, and more), have a separate account where you place the money so you don’t spend it on personal items, food, or entertainment. It can take some work but it’ll save you a lot of stress and anxiety in the long-term!
Small, consistent changes lead to long-term success. Consider rounding up your purchases to the nearest dollar and automatically transferring the spare change into savings. Over time, these micro-savings add up.
D. Lastly, set financial goals that will inspire you.
Whether that’s building an emergency fund, saving for a dream vacation, or becoming debt-free, having a clear objective makes it easier to stay disciplined and motivated.
4. Protect Your Mental Well-Being
Financial stress management also involves taking care of your mental health.
Practice stress-reduction techniques regularly, whether that’s meditation, exercise, or spending time in nature. Join a support group for people dealing with financial stress, and set clear boundaries around money discussions with family and friends.
Focus on progress rather than perfection. Each small step toward financial stability is worth celebrating. Remember that many people are facing similar challenges—you’re not alone in this journey!
Related Article: What is Positive Stress? The 5 Keys to Understanding Eustress & Distress
Take a Deep Breath…
The key to breaking free from financial stress is addressing both the practical and emotional aspects of money management.
Small, consistent actions can lead to significant improvements in both your financial situation and mental health. It can feel tough, and money might feel tight, but it’s possible to get organized and reduce your stress.
When you have the funds available, it’s also a good idea to consider building an emergency fund, even if you can only save a few dollars each week.
Having this financial buffer can help reduce anxiety about unexpected expenses and give you more confidence in your financial future.
Remember that financial wellness is a journey, not a destination. Each step you take toward better money management is also a step toward better mental health!
Read Next: 3 Easy and Simple Secrets for Relieving Morning Anxiety & Stress
Photo by Kaboompics.com
