How to Stress Less About Money

When I think about the most stress-ridden times in my life, those caused or worsened by money problems are at or near the top of the list. Stress caused by financial issues is especially toxic. But there are steps you can take, even while you’re in the thick of these challenges, that make them easier to live with.

So how can you reduce your financial stress?   Here are a few ideas to get you started:

• Spend in a way that’s consistent with your values
• Meet your money problems head-on
• Be mindful
• Increase your financial know-how
• Put the problems on paper
• Plan your financial future
• Set up a safety net
• Enlist the help of friends and neighbors
• Plan for your long-term needs
• Take advantage of free professional advice
• Keep your holistic well-being in check

Taking a small step in even one of these areas may free you from paralysis or overwhelm and be the beginning of a journey on the road to a happier and healthier life.

Align Your Spending with Your Values

A little-known source of stress is having core values that are out of sync with your day-to-day habits. For instance, you may embrace the value of pursuing financial freedom and retiring early, but at the same time you maintain heavy credit card debt.   On some level, you may sense the conflict between your principles and your actions.  The resulting discomfort can contribute to financial anxiety. 

Setting a clear intention for your financial life can be powerful, especially when based on your principles and priorities. By consciously naming your values and making sure each purchase supports them, you can repair the disconnect behind your stress. A little attentiveness can go a long way.

An approach related to conscious spending is allowing yourself to experience gratitude and savor the enjoyment when you do make a purchase.

Face Your Finances

It’s human nature to put our head in the sand and hope problems will somehow go away.  But avoiding money problems can actually make them feel worse due to fear of the unknown. 

As well, if you have debt, interest charges and late fees continue to increase your balance unless you take action. 

So if you haven’t already torn opened those emails from creditors, no time is better than now to do that. 

Practice Mindfulness

Mindfulness is a state of being present and aware.

Practicing mindfulness about your finances won’t put money in your bank account, get you out of debt, or find you a better-paying job, but it can help you gain clarity, reframe your challenges, and cope with your situation.

One use of mindfulness is to raise your awareness of your reactions in our consumer culture. When navigating the marketplace on autopilot, overspending, purchasing by habit, and experiencing buyer’s remorse are all possible outcomes. By sharpening your awareness, mindfulness can help you eliminate some of the root causes of financial stress.

Mindfulness can also make it easier to deal with the reality of your circumstances. For example, doing a quick and simple breathing exercise before viewing a dreaded bank statement can put you in a frame of mind to receive the news in a balanced way rather than reacting on a purely emotional level.

Boost Your Financial Knowledge

A recent study confirmed that a high level of financial literacy is linked to reduced financial stress.

Unfortunately, money management isn’t a required subject in most schools, so through no fault of your own, you may not be equipped to make decisions in your best financial interest. 

Stress can happen when you know something is important but you’re not quite sure what to do about it.  The good news is that money management is a skill, just like many others you’ve mastered. 

See the Resources section for free ways to take your financial know-how to the next level.

Write Down the Problem

Transferring the problem from your mind onto paper is a way of defining it, limiting it, releasing its grip on your thoughts, and getting a handle on it.

Once the financial challenge is on paper, it may not seem so big. Or if it does, you’re better able to break it down into manageable pieces if it’s in a written format. 

When you’re finished, if you no longer need the paper for reference, burning or tearing it up can release emotions and enact your power over the problem.

Create a Plan

Think about your immediate and long-term goals.  Sometimes it helps to break large goals into a group of smaller ones.

Find out how much money is coming in, how much is going out, and how much of a surplus or deficit there is.  Consider what to do to bring your current reality in line with your goals.  If you have to increase your income or decrease your expenses, it’s easier when you have an attainable but inspiring goal in sight. 

Revisit the plan often and adjust it as needed.  You may even decide to review the plan on a regular basis, say, once a month, and include any stakeholders such as your partner or family members.

To nudge you towards success, you may want to set calendar reminders or other cues. Be flexible and forgiving if you temporarily stray from your plan.

Put a Safety Net in Place

If you live paycheck to paycheck, you’re not alone; 78% of workers are in the same precarious place, where a broken-down car or job loss could lead to financial ruin.  If that prospect isn’t stressful, I don’t know what is. 

When you’re working hard to make ends meet, finding any extra money to set aside for an emergency fund (6 months of living expenses) is challenging.  But the reduced stress and the boost in confidence will make your effort pay off.

Reach Out to a Good Listener

Having a supportive person in your life can help you to air troubling issues, deal with them more productively, and not be so hard on yourself.

That person doesn’t have to offer suggestions. Simply sharing your concerns with others can ease stress.

This idea isn’t just common sense; it’s rooted in evidence too. People who have emotional support report lower levels of stress than those without this support.

Use Your Social Network

People who do well at handling their financial life tend to use their social networks as a resource.

It may be hard to do at first, but if you can get past the taboo of talking about money, you can learn from friends and neighbors about opportunities for financial assistance, employment, side hustles, government and nonprofit programs, special loans, and other resources. 

Tapping into one of these opportunities could relieve some of your financial pressure. Word-of-mouth can reveal information that isn’t widely available. 

Take Care of Your Future Self

You can experience an undercurrent of anxiety when you realize you’re not where you want to be to meet your long-term and retirement goals. 

Putting these items on the back burner is easy because the here-and-now seems more tangible and urgent.  But stress eases when you know you’ve planned for a comfortable future without regret.

Get Free Professional Advice

If your financial challenges seem beyond your current knowledge, or if you simply believe you’d benefit from professional help, specialists are available to offer assistance.  If your stress comes from budget, debt, or credit issues, you can get free counseling from the following sources: 

• National Foundation for Credit Counseling, NFCC.org, 800-388-2227
• Financial Counseling Association of America, FCAA.org, 800-450-1794
• American Consumer Credit Counseling, consumercredit.com, 800-769-3571
• Money Management International, moneymanagement.org, 866-889-9347

Just be aware that although counseling is free, if you want one of these companies to handle a debt management plan for you, there will be a charge. If you or a family member lives with a serious or chronic health condition, you can get free help negotiating medical care payment plans from the Patient Advocacy Foundation. They offer many other complimentary services too

Maintain Your Holistic Well-being

Financial well-being is just one part of your overall well-being, which also includes emotional, intellectual, social, physical, spiritual, occupational, and environmental dimensions. All parts are interrelated. When there’s trouble in one area, you can experience distress in any or all other areas.

If you’re experiencing stress due to money issues, try supporting your well-being in other dimensions.  For example, take extra care to eat a nutritious diet, get enough sleep and physical exercise, and try stress-busting relaxation techniques. For details, see the Resources section.

Financial stress is toxic and pervasive, but self-care can help reduce its harmful effects.

How It Pays to Minimize Your Financial Stress

Money is necessary to sustain our lives. We need it to buy food, pay for medical care, keep a roof over our heads, and provide for our families. Because financial troubles threaten our well-being and even our survival, they can feel all-encompassing and cause profound stress.

Stress is a leading cause of disease and dysfunction. Financial stress can damage physical and mental health and relationships.

Financial Stress Undermines Physical Wellness

Chronic stress is known to be a risk factor for cardiovascular diseases (such as high blood pressure), metabolic diseases (such as diabetes), neurodegenerative disorders (such as Alzheimer’s Disease), and cancer.

Other physical consequences of stress include accidental injuries, an increased likelihood of preterm birth, and skipped medical visits and treatments.  Also linked to stress are premature death, poor self-rated health, and poor mental and physical health.

As well, ongoing financial stress can cause muscle pain, lower sex drive, loss of appetite, and fatigue.

Financial stress also undermines physical well-being by disrupting sleep. Sleep supports health and is important for focus, performance, and productivity. About 34% of people note that financial stress negatively affects their sleep. Of those individuals, almost 25% have more severe sleep disturbances such as nightmares, night terrors, broken sleep, insomnia, and fatigue on waking because of their financial circumstances.

Financial Stress Erodes Mental Health

Financial stress puts your mental well-being at risk in several ways.

Chronic financial stress can produce feelings of anger or fear and cause mood swings.

A link has been found between financial security and the ability to find meaning in life. Financial stress is also connected to a weaker sense of purpose and to depression.

What’s more, financial stress carries an increased risk of anxiety, thoughts of self-harm or suicide, and the use of drugs or alcohol as a coping mechanism.

Financial Stress Is Harmful to Relationships and Family Life

In a recent survey, about 28% of people reported that their financial situation and associated stress negatively affected their relationships, and approximately 30% stated that these circumstances touched their family life.

A link has been found between financial stress and partner conflict. Arguments increase, and depression can cause partners to express less care and concern. Related behaviors further undermine satisfaction. Parents can become less responsive, nurturing, and consistent toward their children.

Kids in financially stressed households are more likely to be more sensitive and distrustful and less sociable. They’re more vulnerable to mental health problems, loneliness, and feelings of being excluded by their peers.

Key Takeaways

In the long run, avoiding financial problems only increases your stress, a state of mind that wreaks havoc on your well-being. Quite a few sources of support and ways to cope with financial stress are available. Reaching out during financial challenges can be difficult but well worth the risk.

Resources

From American Consumer Credit Counseling comes the article “10 Simple and Free Budgeting Tools.”

Consumer.gov offers consumer finance basics to help you manage and use your money wisely, use credit and loans carefully, and protect your identity and money.

“Getting Started with Mindfulness” is an accessible introduction to this stress-reduction practice.

If you’re interested in learning more about holistic well-being, this article offers a good explanation.

Start or Join a Conversation

Thanks so much for your dedication to learning more about how to stress less about money and elevate your financial well-being.

Many different perspectives are possible about how to reduce financial stress. Your thoughts are key to this community. Please share them here. If you don’t already have an opinion at the top of your mind, consider sharing your views on one of these points:

• It’s a rare person indeed who manages to escape going through periods of financial stress in life. If you’ve experienced financial stress, what was it like for you, and what did you learn? Your thoughts could help someone dealing with money issues right now.
• What is one thing you want to know about how to reduce financial stress that could make your life better right now?

Do you have a question that wasn’t addressed in this post? Comment below, and I’ll give you my best answer.

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Notice

This post is for educational purposes only and is not legal nor any other type of professional advice. You should consult your own attorney, financial advisor, health provider, or mental health professional concerning any issues in these areas of expertise.

Please understand that facts and views change over time. Posts reflect the author’s understanding at the time of writing, as well as the perspectives of external sources for this post.

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