Skip to content
How to reduce your financial anxiety and stress

Money is something that concerns everyone from time to time. However, if you constantly feel stressed about it, you may have financial anxiety. Learn more about what causes financial stress and how you can help manage it.

Financial stress and your health

You can feel stressed about money for different reasons, such as:

  • To lose one’s job
  • Debt
  • Mount invoices or expenses??

Financial stress can cause you to think or behave in ways that you didn’t have before. This doesn’t always mean you have depression or an anxiety disorder. Understanding the connection between financial anxiety and your mental and physical health can help you start reducing financial stress.??

Mental Health. When you worry about money, your mental health is affected in different ways. Anxiety about money can cause you to sleep poorly or have anxiety or panic about everyday actions, such as opening bills. You may begin to feel isolated. You can part with your family or friends if you think you don’t have enough money to join them for activities.??

If you are in debt, you are not alone. Studies show that half of all adults in debt also have mental health issues related to money worries. When you worry about money, it can seem like a burden you have to deal with on your own. This loneliness only makes things worse. This can cause increased anxiety or mood swings.??

Physical health. People who are in debt or under 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:

Control 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 problems. Is it the precariousness of employment? Debt? Not enough income? Once you have identified the source of the problem, you can make a plan.??

Start by creating a budget. You can do this by making a list of all your monthly expenses and the average cost of each. This way you can see on paper what you need to take care of each month. ??

Some financial experts say you should apply the 50/20/30 rule when creating a budget. This means that 50% of your salary should be spent on mandatory expenses, like rent, insurance, and bills. The 20% should go towards your savings and 30% can be used for other monthly expenses, such as hobbies or recreation.??

If debt is part of your financial anxiety, you should develop a plan that will help you pay late fees and penalties. If you see in your budget that you can’t make the payments, you can contact your lender to see what your options are, including debt consolidation.

Coping with stress

Once your plan is in action, you can find ways to manage your stress. Try to stick to a daily routine that includes regular meals, physical activity, and enough sleep. Make sure you focus 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 help calm your mind, you can try relaxation techniques like yoga or meditation. Activities like these are good for your mind and body and can help relieve symptoms caused by stress and anxiety.??

Let people around you know what’s going on. Financial anxiety can cause you to avoid telling others about how you are feeling and what you are going through. By letting people in, you can find emotional support and the reassurance that you won’t go through this alone.??

Your family and friends can give you advice, but you should also let them voice their concerns. If you’ve acted differently, they’ve probably noticed. Let them express their care for you. To help you bond, you and your family can schedule time together for inexpensive and fun activities.

Get help with your finances

Another way to reduce your financial stress is to talk to a professional. Many organizations offer free financial advice so that you can get expert opinions and advice on how to get your finances in order. A financial advisor can also help you budget and give you the tools you need to stick to it.