FINANCIAL STRESS: How To Deal With Financial Stress

Financial stress
Image credit: USAToday
  1. What is the financial stress?
  2. What are examples of financial problems?
  3.  What can financial stress cause?
  4. How to overcome financial stress?
  5.  Is anxiety a symptom of financial stress? 
  6. How Does Financial Stress Affect Your Health 
  7. Financial Stress Test

Financial stress is one of the most common stressors in the world. One of the issues stressing almost everyone is related to money. You are not alone on this table. For most American adults, money is a major concern and a source of stress. 

In short, according to the statistics provided by the American Psychological Association (APA), 72% of adults report feeling stressed about money, whether it’s thinking about paying rent or having an outstanding debt. This is pretty significant given the fact that it’s tied to so many health issues. 

This article talks about financial stress and how to deal with it, plus a whole lot more. You should get yourself a cup of tea or coffee whichever you’d prefer, this is going to be an educative piece I promise you. 

What is Financial Stress?

This is a type of emotional anxiety that is specifically and entirely related to money. Anyone can suffer from this type of depression, but you must note that it may occur more frequently in households with low incomes. 

Financial stress can result from not earning sufficient money to meet your needs particularly when it concerns paying rent, paying the bills, and buying foodstuffs.

Folks with insufficient income might encounter different levels of stress due to the nature of their jobs. Their careers could lack flexibility when it comes to having off days. 

They might work in dangerous environments, but they won’t have the guts to quit because they won’t be able to sustain themselves financially while they look for another job.

At this point, people with limited and insufficient incomes may not have access to help to control their anxiety, such as health insurance to receive mental health medication and therapy.

A Large number of individuals have anxiety issues about money from time to time. But this can become very complicated if it disrupts your everyday routine. 

For example, you might learn that you can’t concentrate, focus on, or have fun living because your money-related anxiety/stress is making you worry so much.

If your case is intense and difficult, you will suffer adverse and terrible effects on your mental health and probably even your physical fitness and well-being. 

Financial stress and mental health issues can lead to distress, chronic sadness, behavioral modifications like suspending social activities, or physical symptoms like dizziness or headaches.

If you suffer/encounter any of these side effects related to your financial stress, you must make sure to talk to a healthcare therapist and counselor today.

What are Examples of Financial Problems?

Now that we have discussed financial stress and mental health well-being, let’s check out some examples of this type of stress.

 #1. Failure to make ends Meet

The failure to make ends meet is one of the leading causes of tension and mental health-related issues in the United States. Constantly meeting fundamental and crucial expenses was the most common reason for distress among the survey participants.

More than 35% of the Money-Rates survey participants explained that paying conventional financial obligations (bills, a mortgage or rent payment, credit card payments, etc.) was the biggest reason for their discomfort 

With a lot of Americans surviving hand-to-mouth, it’s no wonder that people are having difficulty paying for these necessities. While some analysis participants worried about needs, others worried more about wants. A large fraction of the men surveyed (more men than women) confessed financial gratification was their primary focus.

Last year’s survey findings suggested that financial satisfaction was high on the priority list, as almost over 30% of those interviewed identified their single biggest financial worry as “guaranteeing I have enough to sustain a comfortable lifestyle.”

#2. Living for the Moment 

According to Federal Reserve survey results 31% (percent) of non-retired participants reported having zero retirement savings or pension, affecting 19% of those ages 55 to 64 as a factor that results in financial stress and mental health-related issues.

 It’s no wonder so many participants (40%) mentioned a lack of savings as their greatest financial regret, and another 36% of people said they feared they would not be able to retire comfortably. 

At the peak of these individuals who grieve not saving, there are also those individuals who are, for the most part, wholly focused on the moment /now. 

According to the same Federal Reserve results, 24% have given little reflection to retirement planning and the other 25% have given no thought to retirement planning at all.

#3. Unforeseen circumstances

Large unforeseen circumstances, for instance, high medical bills or an expensive car repair, are another cause of financial stress and mental health issues.

 It’s important to note here that everyone has what stresses them out mentally and what you’d consider insignificant is very alarming for someone else

#4.  Divorce

This right here is one of the most frequent and overwhelming causes of financial stress. It is extremely a financial strain often on both parties, according to surveys, the rate of ruin filings for single mothers in the United States is 300% higher than the national standard.

#5.  Failure to create a Budget

Even people with high earnings can end up under financial stress if they fail to properly manage their wealth well. 

Expenses can creep skyrocket, such as credit card bills, and suddenly a person finds themselves battling financially. It’s important to always budget your money carefully.

How Does Financial Stress Affect Your Health?

It’s no longer news that financial stress is now one of the leading causes of deteriorating health among Americans. A nationwide analysis of more than 3,000 adults published in March 2022 found that 90 percent reported that money was the origin of stress. 

About two-thirds of participants recounted feeling like they couldn’t conquer the financial drawbacks that were building up, and 40% documented making no efforts to secure their financial future.

Data compiled in 2019 by “Everyday Health” for the United States Stress Survey of more than 6,700 men and women revealed that money was their number one source of stress, with 52 percent of people saying financial issues regularly stressed them out. 

This was before a global pandemic shook the job market and the United States hit record-high inflation levels. It’s not just a problem for our pocketbooks. Research also indicates that this type of tension and stress can damage our health.

#1. Can Be Toxic to Mental Health

Sometimes it can help guide good decision-making. “Stress as a speed impact can be healthy, Think of the small quivers of anxiety you might feel when signing a big contract or closing that deal you have been chasing. “It’s your financial gut-check in many cases,” Agnew.

Too much financial stress, however, can deeply affect our emotional and mental health. Part of the reason financial stress becomes so toxic is because of how all-consuming this kind of stress is. 

Money affects all parts of our daily activities (for instance, buying groceries, paying rent or a mortgage, and accessing healthcare). Bothering and stressing about money can lead to concern about all of these things.

It has been proven that financial stress is linked and connected with depression across all income levels, although the connection is stronger in low-income populations.

All of the financial decisions we are forced to make each day can add up.

#2. It May Cause Insomnia 

Loss of sleep is one of the major signs that we are out of balance. It’s our body’s way of making us know that something is wrong. Financial stress is most likely to lead to insomnia, because of how all-consuming it can be.

The issue of the ongoing pandemic definitely comes into play here. One survey looked at rates of insomnia among American adults before and during the COVID-19 pandemic.

Researchers discovered that the level of insomnia skyrocketed by 27 percent between 2018 and 2020, and that intensified financial stress is one reason for this.

But investigation performed before the pandemic supports that the tie between financial stress and disrupted sleep is not a new one. 

#3. Risk of heart disease and other chronic illness

Too much financial stress can have long-term physical impacts, as well. This is because stress itself triggers a series of physical reactions—your heart rate speeds up, muscles tense up, and breathing quickens — thanks to heightened levels of the stress hormones cortisol and adrenaline (this act like messengers, bracing the body to cope with a perceived threat). 

If this response is chronic (as can be the case with financial stress), it can lead to health issues like hypertension, high cholesterol, muscle pain, and other matters.

How to Overcome Financial Stress?

Learning how to deal with financial stress and effectively manage your predicament can help you feel more in charge of your life, reduce anxiety, and build a more comfortable future. You should try some of the following tips to get started:

#1. Generate an additional source of income.

If you are experiencing this and you don’t know how to deal with stress, you likely already feel you need more money in your account. But knowing how to boost and increase your earnings without generating significant stress for yourself can be complicated, too.

Thankfully, there are various strategies to boost your income and relieve your stress.

#2. Declutter your budget. 

You already know life is full of ups and down, and periodic budget checkups are crucial to improving your financial health. You must take control of your finances by dedicating some time to schedule, organize, and check all of the money coming in and out of your bank account.

#3. Don’t forget general stress management. 

The more control you have over your finance, the less stress you will feel, it’s one way how to deal with this discomfort. As you work on boosting your financial situation, you should also reduce stress by practicing stress-eliminating procedures and creating other changes to enjoy a low-stress lifestyle. 

Eating a nutritious diet, getting enough sleep every night, and doing some form of physical exercise are various ways how to deal with financial stress and mental health issues. You can also try mindfulness procedures like deep breathing and yoga to alleviate any anxiety.

#4. Know the debt cycle. 

Understanding debt is the first step to getting yourself out of that fix and also one way how to deal with financial stress. A survey found that you may be able to pay off your debt more rapidly by paying off one account at a time and by beginning with your lowest debts first.

You must do your investigation, and findings and pay attention to interest ratios. I would advise you to first clear off the debt that has the largest interest rate to prevent paying higher costs over time.

Is Anxiety a Symptom of Financial Stress? 

Yes, anxiety is a symptom of financial stress. Just in case you are wondering how your health is affected this is one way it affects your mental health. 

Several studies have demonstrated a cyclical relationship between stress and mental health problems for instance depression, anxiety, and substance abuse. 

It terribly impacts your mental health. The stress of paying debts can affect our mental healing.

Anxiety over our finances can appear in all sorts of ways, and in some circumstances, it can lead to health problems for instance high blood pressure, high cholesterol, and insomnia. 

Most times, it can even become depleting and exhausting to the point where it’s difficult to go through our day as it relates to our money. 

That’s why it’s very important you know how to deal with financial stress and mental health issues associated with it so you don’t breakdown


You must not wait until your financial stress becomes detrimental to your mental health and general well-being before you reach out for control measures. 

If it’s too much for you to handle alone, you must find someone to talk to about disturbing issues and concerns. Talk about your money issues with trusted friends and family.

You must not go into in-depth, but the more you talk about your financial stress issues with your support system, the less secluded and stressed you will feel. 

Your loved ones may know how you can deal with financial stress if you don’t, a new person on what you could do differently to get your financial issue under control.


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