Financial stress is a common issue that affects millions of people worldwide. Whether it is due to debt, unstable income, or unexpected expenses, financial challenges cause stress which can affect your mental, physical as well as emotional health.
In this blog we are going to explore the causes of financial stress, the intricate relation between financial stress and mental health as well as some effective tips to manage this stress.
What Are The Causes Of Financial Stress?
While it can have many causes, here are some of the most common ones:
- Debt:
Credit card bills, student loans and other forms of debt can cause money worries.
- Unemployment or Underemployment:
Job instability or insufficient income can create financial strain.
- Unexpected Expenses:
Emergencies like medical bills and car repair can cause financial instability.
- Increased Cost Of Living:
Rising prices of essentials like food, housing, healthcare can add to financial pressure.
How It Affects Mental Health?
Financial stress is more than just worrying about money, it can have drastic effects on your mental health. It can cause:
- Anxiety And Depression:
Persistent stress due to financial pressure can trigger anxiety, feelings of helplessness and depression. It can make you feel trapped in your circumstances, leading to a sense of despair.
- Sleep Disturbances:
Constantly worrying about money can affect your sleep as well. This stress can make it difficult to sleep, leading to insomnia or restless nights. Poor or inadequate sleep further exacerbates mental health problems, creating a vicious cycle.
- Social Isolation:
Financial worries can cause feelings of shame, guilt or embarrassment, and low self-esteem, which can make people avoid their friends and family. Financial strain makes it difficult for people to attend and participate in social activities. This causes them to withdraw from social interactions and make them feel isolated and lonely.
- Chronic Stress Response:
Financial worries activate the body’s stress response, releasing hormones like cortisol. This prolonged stress causes irritability, mood swings and difficulty concentrating. It can also cause a burnout, which is a state of physical, mental and emotional exhaustion.
The Cycle Of Financial Stress And Mental Health:
Financial stress can cause poor mental health and poor mental health can decrease productivity and impair decision making which can further cause financial stress. This creates a vicious cycle that is hard to break.
For example, someone experiencing mental health issues can find it difficult to focus on financial planning or proactively take steps to address their debt, which will further exacerbate their stress.
Being stressed can make you spend more to lift your mood and feel better, which in turn will cause financial strains and increase stress.
To break this cycle, it is necessary to address financial worries appropriately, so you can take control of your situation and overall well-being. Here are some tips to help you do so:
Tips To Manage Financial Stress:
- Create A Budget:
Assess your situation by making a detailed budget that will help you track your income and expenses.This will give you a clearer picture of your financial situation. Monitoring your expenses can help you understand your spending patterns and identify areas where you can reduce cost.
- Develop A Plan:
After assessing your financial situation, develop financial goals accordingly. Make a plan, whether it is for paying off debts, saving for emergencies or cutting down your expenses. Differentiate wants from needs, and try to spend your money on the things you actually need.
You can also work on negotiating your bills. Contact your service providers for potential discounts,or easy payment plans on utilities, rents or loans.
- Set Realistic Goals:
Try to break down your financial goals in small achievable steps. This can reduce stress by making the process less overwhelming.
- Seek Professional Advice:
You can seek advice from professionals like financial advisors or counsellors. They can guide you and provide solutions tailored to your condition. If you are in debt, there are credit counselling agencies that can help you create a manageable repayment plan.
To deal with your stress, you can get professional help from therapists or counsellors.
You can also contact organisations like mind to get help & guidance for your stress or other mental health concerns.
- Talk About Your Worries:
Sharing your concerns with your trusted friends and family members can provide you emotional support and practical advice.
- Prioritise Self Care:
To manage your stress you should prioritise self care. Try to exercise, take a healthy diet and adequate sleep. You can also practice mindfulness and relaxation techniques to relieve your stress. Learn more about tips to reduce stress.
- Increase Your Income:
Try to look for side hustles like freelancing, part-time jobs or selling unused items that you don’t need. You can also invest in learning new skills to increase your financial potential.
You can also contact organisations like mind and mental health foundation to get help & guidance regarding your stress or other mental health concerns.
If you are suffering from stress and need some time off your work or school, you might need a sick note to officially take a leave.You can get a sick note online, within a few minutes by an EU licensed doctor, from the comfort of your home.