How financial stress impacts your health (and 5 tips to deal)
Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA
Learn what financial stress is including its symptoms and effect on your mental health. Plus, examples of common stressors and how to deal with financial stress.
Financial stress can affect anyone, regardless of their economic status. When economic uncertainties loom, understanding how to manage financial stress is more important than ever because it can impact not just your financial health but your overall wellbeing.
What is financial stress?
Financial stress is the tension and anxiety that comes from facing financial uncertainty or difficulties and the fear of not having enough money to meet your needs. This can include worries about paying bills on time, saving for the future, or dealing with debt.
Unpaid debts: Outstanding debts from credit cards, loans, or bills can accumulate interest, leading to a growing financial burden. This is often the most immediate source of financial stress.
Unemployment or underemployment: Losing your job or not earning enough money can affect your ability to cover everyday expenses.
Economic difficulties: Broader economic challenges such as recessions, inflation, or market downturns can erode your savings.
Increased financial responsibilities: Life events such as parenthood, marriage, or taking care of aging parents can increase your financial burden.
Unexpected expenses: Emergencies like medical bills, home repairs, or car troubles can create financial strain.
Lack of savings: Without an emergency fund, an unexpected expense can be a source of stress.
Retirement worries: Concerns about not having enough money saved for retirement can cause long-term financial stress, especially as you get older and the reality of retirement gets closer.
6 symptoms of financial stress
Financial stress can impact both your mental and physical health. Understanding these symptoms is a critical step toward recognizing the impact of financial stress on your life and improving your financial wellbeing.
1. Anxiety and worry
Financial stress can cause racing thoughts about paying the next bill, fear of unexpected expenses, or dread of checking your bank account. Financial worries might keep you awake at night or distract your thoughts during the day.
2. Feelings of shame or embarrassment
Financial stress can stem from societal pressures to be financially successful or personal expectations about where you "should" be in your financial life. You might feel ashamed or embarrassed, and some people even avoid social situations where you have to spend money.
3. Loss of financial control
Feeling like you can't keep up with your finances or that you're losing control over your money is a common symptom of financial stress. This might be falling behind on bills, not having a clear understanding of your financial situation, or feeling powerless to make changes.
4. Anger and irritability
Feeling trapped by your financial situation can lead to increased irritability, and this emotional volatility can strain relationships. You might find yourself snapping at loved ones, getting angry over small expenses, or feeling frustrated by discussions about money.
5. Social withdrawal
As financial stress develops, you might start withdrawing from social activities. You might want to avoid spending money or feel you don't fit in because of your financial situation. Social withdrawal can worsen feelings of loneliness and depression, making it even harder to deal with underlying financial issues.
6. Decision paralysis
Being overwhelmed by your financial situation can make it difficult to make financial decisions or choices in other areas of your life.
Physical and mental health effects of financial stress
Financial stress can trigger physical and mental health issues. By recognizing the effects of financial stress, you can take informed steps toward improving both your financial situation and your overall health.
Insomnia or trouble sleeping
Financial stress can cause your mind to race with thoughts of bills, debt, and financial uncertainties, making it hard to fall asleep or stay asleep. This lack of restorative sleep can lead to fatigue, reduced cognitive function, and a weakened immune system.
Depression
Financial stress can be a risk factor for depression. The constant worry and feelings of helplessness associated with financial difficulties can lead to a persistent sense of sadness in every area of life.
Fatigue
Chronic stress, including financial stress, can drain your physical and mental energy. Even if you manage to get enough sleep, you might still feel tired and worn out because the quality of your rest is affected.
Weight fluctuations
Stress can lead to changes in appetite and eating habits. Some people might turn to food for comfort, leading to weight gain, while others may lose their appetite altogether, resulting in weight loss. Fluctuations in weight can have further health implications, including increased risk of heart disease, diabetes, and other conditions.
Lack of self-care
When you're worried about finances, spending time and resources on health and wellness might seem like a low priority. This can mean skipping doctor's appointments, not exercising, or eating unhealthily. Over time, this can lead to more serious health issues.
Unexplained physical issues
Financial stress can manifest in various physical symptoms that might seem unrelated at first. These can include headaches, muscle tension, digestive problems, and elevated blood pressure. Chronic stress can also exacerbate existing health conditions, making them more difficult to manage.
How to deal with financial stress: 5 tips to ease money worries
Managing financial stress effectively requires focusing not only on your finances but also on your emotional and psychological wellbeing. By addressing both the financial and emotional aspects of financial stress, you can work toward a more stable, healthier life and improve your overall wellbeing.
1. Practice stress management
Adding stress management techniques into your daily routine can significantly reduce the psychological impact of financial stress. Deep breathing exercises, meditation, and yoga can help calm your mind, reduce anxiety, and improve your focus, making it easier to tackle financial challenges. Set aside time each day for activities that relax and rejuvenate you, such as walking, reading, or hobbies, as these can provide a break from financial worries.
💙 Our Pump the Brakes on Stress meditation is a great tool to help you regain control of your mind and body.
2. Get clear about your finances
Take an inventory of all your income, debts, expenses, and savings to understand your financial situation. Create a detailed budget based on this information to help you identify areas where you can cut back, save more, or reallocate funds. Setting specific, achievable financial goals can provide direction and a sense of purpose, making it easier to stay on track.
💙 Learn how to get more clarity on your Financial Intentions during this talk with personal finance expert Suze Orman.
3. Schedule money check-ins
Weekly or monthly check-ins on your financial status can help you stay informed and make necessary adjustments to your budget or financial plan. Use this time to review your spending, track your progress toward your financial goals, and adjust your budget as needed.
💙 Practice the art of mindfully checking in with yourself during The Check-In Tool session of the Daily Jay.
4. Practice self-compassion
Many people experience financial stress. It’s important to remember that your financial situation doesn't define your worth or capabilities. Acknowledge your feelings without judgment, and remind yourself that it's okay to be imperfect. A self-compassionate mindset can also make it easier to seek support and take constructive action.
💙 This Loving-Kindness meditation can help you practice the art of self-compassion.
5. Get professional help
Financial advisors can offer personalized advice on managing debt, saving, and investing, while counselors or therapists specializing in financial stress can provide support for the emotional aspects of financial difficulties. Seek out community resources, non-profit organizations, or online tools designed to help with financial planning and stress management.
Financial stress FAQs
Can financial stress cause anxiety?
Financial stress can be a significant cause of anxiety for many people. When you're facing uncertainties about your financial future or struggling to manage your finances, it's common to experience anxiety. This is because money plays a critical role in our sense of security and ability to meet basic needs. Financial stress can trigger the body's stress response, leading to symptoms of anxiety such as restlessness, increased heart rate, difficulty concentrating, and sleep disturbances. Recognizing the link between financial stress and anxiety is important for seeking appropriate help and managing these feelings effectively.
Why am I so financially stressed?
There are many reasons you might be feeling financially stressed. It often results from feeling like your financial demands exceed your resources, and there are common triggers that can make you feel overwhelmed and unsure about how to regain control over your finances.
Carrying significant debt without a clear plan for repayment.
Living paycheck to paycheck with little to no savings for emergencies.
Facing unexpected financial burdens, such as medical bills or car repairs.
Experiencing a job loss or reduction in income.
Feeling unprepared for long-term financial goals, including retirement.
Once you identify the causes behind your financial stress, you can explore solutions and strategies to reduce your stress and improve your financial situation.
Is financial stress normal?
While financial stress is common, it's not something you have to accept as a normal part of life. Many people experience financial stress at some point, but that doesn't mean it's inevitable or unmanageable. Recognize financial stress as a signal that something needs to change in your financial life. It's an opportunity to reassess your financial habits, make adjustments, and seek support to improve your financial wellbeing. By addressing financial stress proactively, you can reduce its impact and move toward a more secure and peaceful financial future.
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