Money is something that everyone worries about every now and then. However, if you are constantly feeling stressed out, you may experience financial anxiety. Learn more about what causes financial stress and how to manage it.
Financial stress and your health
You can be stressed with money for a number of reasons, such as:
- Lose the job
- debts
- Mount bills or expenses
Financial stress can cause you to think or act in ways that you have not done before. It doesn’t always mean you have depression or an anxiety disorder. Understanding the relationship between financial anxiety and your mental and physical health can help you reduce financial stress.
Mental health. When you worry about money, your mental health is affected in different ways. Fear of money can lead to poor sleep, or anxiety or panic about everyday activities such as opening bills. You can start to feel isolated. You can break up with family or friends if you think you don’t have enough money to join them for activities.
When dealing with debt, you are not alone. Studies show that half of all indebted adults also have psychological problems related to money worries. When you worry about money, it can feel like a burden that you are alone with. This loneliness only makes things worse. It can lead to increased anxiety or mood swings.
Physical health. People with debt or financial stress often report that it affects their physical health. Financial anxiety can release stress hormones like cortisol and adrenaline, which can lead to problems with:
Take control of your finances
The first thing you can do to reduce financial stress is to get to the root of the problem. Ask yourself what is causing your financial troubles. Is it job insecurity? Debts? Not enough income? Once you’ve pinpointed the cause of the problem, it’s time to make a plan.
Start by creating a budget. You can do this by making a list of all of your monthly expenses and the average cost for each. That way, you can see on paper what to look for each month.
Some financial experts say that you should use the 50/20/30 rule when creating a budget. That means 50% of your paycheck should be used for mandatory expenses like rent, insurance, and bills. The 20% should be used for your savings and 30% can be used for other monthly expenses such as leisure or fun.
If debt is a part of your financial worries, you should come up with a plan to help pay late fees and penalties. If your budget sees you unable to make the payments, you can contact your lender to see what options you have, including debt consolidation.
Coping with stress
Once your plan is put into action, you can find ways to manage your stress. Try to stick to a daily routine that includes regular meals, physical activity, and adequate sleep. Make sure you are focusing on healthy foods to nourish your body and avoid alcohol. When people worry about money, they sometimes increase their alcohol consumption. This is only a temporary solution that will not help you and may harm you in the long run.
To calm your mind, you can try some relaxation techniques like yoga or meditation. Activities like these are good for the mind and body and can help relieve symptoms of stress and anxiety.
Let the people in your inner circle know what is going on. Financial anxiety can cause you to avoid speaking to others about how you are feeling and what you are going through. By letting people in, you may find emotional support and the assurance that you will not get through this alone.
Your family and friends can offer you advice, but you should also let them raise their concerns. If you’ve acted differently, you probably noticed. Let them express their care for you. To help you connect, you and your family can schedule time together to do activities that are inexpensive and fun.
Get help with your finances
Another way to reduce your financial stress is to speak to a professional. Many organizations offer free financial advice so you can get expert opinion and advice on how to get your finances in order. A financial advisor can also help you draw up a budget and give you the tools you need to stick to it.
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