Tips for Reducing Financial Stress
According to Enrich.org, “A Northwestern Mutual study found that 44 percent of Americans stated that financial concerns were their number one stressor, with more than one in four feeling depressed about finances at least monthly and two out of ten feeling depressed weekly, daily, or hourly.”
Whether it be the swipe of a card, or the handing over of a paper bill, people are impacted by finances daily. The toll is not just on one’s bank account. Larger effects include physical and mental health symptoms, negative implications within the workplace, and developing a vicious cycle that furthers these negative effects.
According to WebMD, “if your financial wellness is low and you have high financial stress, you’re twice as likely to have poor overall health. Experts found that you’re four times as likely to get some sort of condition.”
Effects on Physical Health
Effects on Mental Health
Headaches / Migraines
A weakened immune system
High blood pressure
Issues with digestive system
Muscle tension
Heart arrhythmia
Sleep problems
Anxiety
Depression
Fatigue
Sleeplessness
A Money and Mental Health survey of nearly 5,500 people with mental health problems found that, while unwell:
93% spent more than usual
92% found it harder to make financial decisions
74% put off playing bills
71% avoided dealing with creditors
56% took out a loan that they would not otherwise have taken out
Tips to gain better financial wellbeing, according to HelpGuide.org:
Tip 1: Talk to someone
Get professional advice
Open up to friends and family
Tip 2: Take inventory of your finances
Include every source of income
Keep track of ALL your spending
List your debts
Identify your spending patterns and triggers
Look to make small changes
Eliminate impulse spending
Go easy on yourself
Tip 3: Make a plan – and stick to it
Devise a solution
Put your plan into action
Monitor your progress
Don’t get derailed by setbacks
Tip 4: Create a monthly budget
Include everyday expenses in your budget
i.e. groceries, gas, rent/mortgage, utilities, clothes, etc.
Remember annual expenses
i.e. car insurance, property taxes, etc.
Unexpected/Variable expenses
i.e. medical expenses, car repairs, etc.
Prioritize your spending
pay the necessities first, such as covering the electrical bill and buying groceries. After those are covered, figure out where the rest can go, such as debt payments, entertainment, etc.
Start an emergency fund
start building up to one month’s income
Enlist support from your spouse, partner, kids
Tip 5: Manage your overall stress
Exercise
Practice relaxation techniques like meditation and yoga
Improve your sleep
Eat a balanced diet
Boost your self-esteem
Practice gratitude
Reach out to our own Strategic Wellbeing Consultant, Taylor Hahn, to discuss next steps as many of our other employer groups have found this to be a successful approach.
