The mental health impact of financial stress

The mental health impact of financial stress

A sharp rise in the costs of groceries, everyday products, and housing — paired with growing unemployment and worries about the economy — can keep anyone up at night. If you’re frequently concerned about money, it can affect your health, mood, and ability to focus.

Sometimes financial stress is temporary, like when you need to pay for an unexpected car or home repair. Other times, it can be caused by ongoing challenges like rising prices, debt, or not earning enough to cover your bills. Rula shares a few ways to ease your stress and start feeling in control of your life again.

Key Takeaways

• Financial stress happens when worries about paying bills, managing debt, or trying to save money make you feel anxious or uneasy about your finances.
• Financial stress is a common experience that can negatively impact your life in different ways.
• You can ease money-related stress by seeking professional support. A therapist can teach you coping skills, help you build a healthier mindset about money, and change unhealthy spending habits.

Symptoms of financial stress

Dealing with financial stress and uncertainty can take a serious toll on your health, leading to both physical and emotional symptoms. Everyone experiences money stress differently, but some common signs of financial stress include:

• Worrying about where your money is coming from or how you’ll make ends meet
• Arguing with loved ones about money
• Thinking about your finances constantly or feeling like you never have enough
• Losing sleep or feeling anxious when you think about money
• Feeling guilty, tired, sad, or overwhelmed about your financial situation
• Experiencing physical symptoms like headaches or digestive problems 

What contributes to money worries

Anyone can feel stressed about money, but some people are more likely to experience challenges depending on their income, life stage, or responsibilities. Studies show that financial stress is especially common among families with low income, those assigned female at birth, young adults, single or unemployed people, and people who rent their homes.

Other factors that can add to financial stress include:

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• Living paycheck to paycheck: When every dollar goes toward basic needs like rent, groceries, or transportation, it can feel like you’re one unexpected expense away from falling behind.
• Retirement worries: People nearing or already in retirement may stress about whether their savings will last, how to pay for rising medical costs, or if they’ll have enough to live comfortably.
• Medical debt: Owing money for medical bills can take a major toll on your finances and mental health.
• Poor financial literacy: Budgeting, investing, and managing credit aren’t typically taught in school, so many adults feel unprepared to manage their money.
• Comparing yourself to others: Seeing friends or coworkers buy new homes, go on vacations, or brag about expensive purchases on social media can make you feel like you’re falling behind.

The effects of financial hardship

Financial stress can impact all areas of your life. It doesn’t just affect your bank account; it can also change how you think, feel, and connect with others.

Ongoing money worries can lead to:

• Low self-esteem: Feeling like you’re failing financially can hurt your confidence.
• Physical problems: Chronic stress can lead to headaches, muscle pains, and a weaker immune system.
• Unhealthy coping habits: You might eat poorly, skip exercise, or turn to unhealthy substance use to cope.
• Relationship strain: Money disagreements are one of the top causes of breakups and family conflicts.
• Impacts on your mental health: Constant financial stress can also worsen mental health conditions or make it harder to manage them.

Here’s how money worries can connect to different conditions:

• Attention-deficit hyperactivity disorder (ADHD): Managing money can be challenging when you have ADHD and have difficulty with focus and organization.
• Anxiety disorders: Constant worry can make it difficult to make sound financial choices. Some people turn to compulsive buying to find relief and get a boost of dopamine, but that calm usually fades fast.
• Depression: Feeling hopeless or drained can make it tough to budget, pay bills, or plan ahead.
• Bipolar disorder: During manic periods, people with bipolar disorder may overspend or take financial risks. In depressive phases, they may lose motivation to manage money.
• Post-traumatic stress disorder (PTSD): Finances can feel overwhelming or triggering, leading some people with PTSD to avoid them or spend impulsively for comfort.

Healthy ways to manage financial stress

The first step in managing financial stress is noticing how your money worries affect your mood, health, and daily life.

1. Set realistic goals. Setting and sticking to financial goals can seem overwhelming. Using SMART goals (those that are specific, measurable, attainable, relevant, and time-based) can help you take small, meaningful steps toward relieving financial stress.
2. Join a support group. Talking with others who share your difficulties with debt or budgeting can make you feel less alone and more motivated.
3. Get help managing your money. Using a free online financial planning tool can make it easier to track your spending. You can also find free financial advice and other services through the Foundation for Financial Planning.
4. Practice self-care. Financial stress affects both your mind and body. Make time to rest, exercise, and connect with supportive friends and family.
5. Seek professional support. If financial stress is taking a toll on your physical and emotional health, a therapist can teach you healthy coping skills and help you manage anxiety around money.

This story was produced by Rula and reviewed and distributed by Stacker.