Money worries: how to cope with financial stress
Money worries are a common source of stress, and the current cost of living crisis means that financial stress is affecting more people than ever.
Money worries are a common source of stress, and the current cost of living crisis means that financial stress is affecting more people than ever.
Financial stress is a feeling of tension, pressure and emotional strain that’s directly related to money. You might struggle with financial stress if you don’t make enough money to pay your bills, buy essentials such as food, or are in a lot of debt. Here, we’ll explore how financial stress can affect your mental health, and provide some tips on how to cope if you’re feeling overwhelmed.
If you’re worried about money and debt, you’re certainly not alone. The American Psychological Association have found that as many as 72% of adults report feeling stressed about money, whether it’s worrying about your day-to-day expenses and outgoings, or feeling overwhelmed by debt.
Considering the impact that financial worries can have on our mental wellbeing and even our physical health, this figure is incredibly significant.
There's a clear link between financial stress and health.
When it comes to money worries and mental health, the Money and Mental Health Policy Institute shows that people with debt problems are more likely to experience mental health difficulties. In England:
Financial stress can result in:
It’s important to understand that financial stress and mental health problems can form a cycle:
In addition, people with money struggles may not have the resources they need to access help. For example, they might not be able to afford insurance to pay for mental health treatment. This, in turn, can cause their mental health to become worse and lead to even more problems.
Financial stress can have a hugely negative impact on your quality of life. However, there are a number of things you can do that may help you cope a bit better with your money worries. If you’re dealing with debt stress, these tips can also help.
Opening up to someone you trust about your financial difficulties and how you’re feeling can really help. They’ll be able to offer you emotional support and a fresh outlook, and may suggest solutions for managing money that you hadn’t thought of. Speaking about your finances can also help you to put the situation into perspective and start taking steps forward.
This will help you paint a clear picture of your current situation. Look at every source of income and all of your outgoings, and see where savings could be made. For example, could you look at getting a better deal on your mobile phone, car insurance or TV package? Be proactive and look at all the different avenues for potentially cutting back, to help you feel more in control of your finances.
Could you sell some of the clothes or household items you no longer need on websites such as eBay or Vinted? These might be some quick-wins for earning extra money until you get back on your feet.
Put your financial worries in the order in which you want to tackle them. For example, if you’re particularly worried about credit card debt, make paying that off your main focus. Breaking your worries down into more manageable chunks can make them feel less intimidating and can make your goals more achievable.
Websites like Citizens Advice and GOV.UK provide free advice on managing debt and finances, as well as information on whether you may be eligible for benefits or other means of support. Also, if you’re struggling to pay your bills, it can be a good idea to speak to your bank, utility provider or credit card company, as they may be able to provide further advice, and set up a payment plan that works for you.
Learning to manage your stress can help you cope better day-to-day, leaving you able to focus on practical solutions for your money issues. There’s loads of small things you can do to reduce stress and deal with anxiety, such as: