Exploring The Link Between Financial Stress And Physical Health
Life’s challenges and stressors come in many forms—but for millions of Americans, financial stress is at the top of the list. Between ongoing economic uncertainty, unstable job markets and the rising cost of living, financial hardship and its resulting mental and physical health effects are becoming more prevalent.
Whether it’s mounting debt, unexpected expenses, or living paycheck to paycheck, financial worries can be overwhelming, and their impact often goes far beyond a bank statement. Money worries can lead to a range of symptoms that can be difficult to manage. Below, we’ll explore the complex relationship between financial stress and physical health in particular, plus what steps individuals may be able to take toward reducing financial stress and improving overall quality of life.
What is financial stress?
Financial stress refers to the anxiety and worry experienced when a person’s financial situation feels uncertain or unmanageable. This stress can stem from various sources, such as job loss or instability, debt, unexpected expenses, or struggling to make ends meet. Financial stress can create a constant sense of worry about paying bills, maintaining a stable living situation, or saving for emergencies, and this anxiety can impact virtually every aspect of a person’s life.
Understanding the impacts of stress
Stress is a natural response to challenging situations. However, when it becomes chronic, it can take a toll on both mental and physical health. Financial stress can be particularly potent because it often feels inescapable, affecting day-to-day decision-making and overall well-being in many cases.
The relationship between financial stress and mental health
Stress, regardless of its source, can profoundly impact mental health, potentially leading to symptoms such as anxiety, low mood, and irritability. When faced with ongoing pressures, the mind can become overwhelmed, making it difficult to concentrate or find moments of relaxation. This mental strain often contributes to feelings of helplessness and emotional exhaustion.
In the short term, stress can cause restlessness, mood swings, and difficulty sleeping. When stress becomes chronic, it can lead to more serious mental health challenges, like panic attacks, depressive episodes, and thoughts or actions related to self-harm.
Over time, persistent stress may impact mood regulation too, increasing the risk of developing anxiety disorders or major depression. The cycle of constant worry and emotional fatigue can also lead to avoidance behaviors, further complicating daily life and often affecting relationships and overall well-being.
The relationship between financial stress and physical health
When faced with perceived threats or overwhelming demands, the body activates its “fight- or-flight” response, releasing stress hormones like cortisol and adrenaline. In the short term, this response can be adaptive, preparing the body to respond to threats or challenges. However, prolonged activation of this stress response can lead to significant physical health complications.
Shorter-term symptoms of stress often include headaches, muscle tension, fatigue, sleep problems, and digestive discomfort. If stress persists, the body remains in a heightened state of alert, which can lead to more severe health conditions over time. Chronic stress has been linked to high blood pressure, heart disease, diabetes, dementia, and a weakened immune system. Additionally, the ongoing strain on the body can exacerbate any existing health challenges, highlighting the need for effective stress management strategies.
When money is a main source of stress
For many people, financial worries are a constant source of anxiety. Living paycheck to paycheck, struggling with debt, or facing unexpected expenses can create a sense of financial insecurity that often feels overwhelming. This uncertainty can lead to chronic stress, affecting both mental and physical health.
Statistics on money as a key source of stress
Recent studies highlight the widespread impact of financial stress. According to a survey, approximately one-third of American adults report feeling financially insecure. Additionally, nearly 42% of US adults say that money-related issues negatively affect their mental health, often leading to anxiety, depression, and other impacts.
The link between financial stress and physical health
Financial stress doesn’t just impact mental well-being—it can also have profound effects on physical health. Research published in the journal Brain, Behavior, and Immunity in 2024 sheds light on how chronic financial strain can disrupt essential biological processes, increasing the risk of serious health conditions.
The study examined blood samples from 4,934 adults aged 50 and over, focusing on four biomarkers related to inflammation and the stress response. Using statistical analysis, researchers identified three groups and categorized them as low risk, moderate risk, and high risk to health, respectively, based on the patterns of these biomarkers.
The findings revealed a significant link between chronic stress and an increased likelihood of being in the high-risk group. Specifically, individuals who reported financial strain were 59% more likely to fall into the high-risk category four years later. This study suggests that financial stress may disrupt the balance between the immune and neuroendocrine systems. Disruptions in these systems have been linked to cardiovascular disease, weakened immune function, and even mental health conditions such as depression and schizophrenia.
Why is financial stress such a powerful force?
One reason financial stress is often so detrimental may be its pervasive nature. In fact, the same 2024 study cited above reports that the impact of financial stress on physical health tends to be cumulative. Unlike some other stressors, financial worries often infiltrate many aspects of daily life, affecting relationships, social interactions, self-esteem, and even basic needs such as food and shelter.
For each additional stressor experienced, the likelihood of being in the high-risk group increased by 19%. This highlights the compounding effect of multiple stressors on overall health. This constant strain keeps the body’s stress response activated, leading to chronic inflammation and, potentially, a host of physical health challenges. Stress can also lead to unhealthy coping mechanisms, such as overeating, substance use, or physical inactivity, potentially further compounding its negative effects on physical health.
Given the link between financial stress and physical health, improving financial literacy, seeking financial resources, and adopting healthy coping mechanisms may be helpful in mitigating the impact of money stress on the body.
Tips for managing money as well as physical and mental health
While financial challenges are not always within an individual’s control, such as those related to inflation, job insecurity, or systemic discrimination, effective money management may still play a role in reducing financial stress and improving physical and mental health in turn. By taking control of finances as much as possible, individuals may be able to alleviate some of the health effects associated with money worries.
Separating money and self-worth
One of the most challenging aspects of financial stress is often the emotional weight it carries. Many people are taught to equate their self-worth with their financial situation, leading to feelings of shame, guilt, or inadequacy when money challenges arise. It can be important to remember that financial difficulties are not a reflection of personal value.
Separating self-worth from financial status may allow individuals to approach money management more objectively. It might also reduce the emotional burden associated with financial stress, making it easier to take practical steps toward financial well-being.
Implementing positive money habits
Creating a budget may help some people manage financial stress and its impacts. A budget provides a clear overview of income, monthly expenses, and spending habits, allowing individuals to make more informed financial decisions. Building an emergency fund—even if contributions are a few dollars here and there when possible in a high-interest savings account—is also advisable.
Individuals may also research effective approaches to debt repayment, such as the snowball vs. the avalanche method. Finally, meeting with a reputable financial counselor or advisor could also be useful in improving one’s financial health and planning for one’s financial future.
Maintaining physical health in the face of financial stress
Taking steps to support your physical health can be helpful when facing financial stress. Investing time and effort in regular exercise, balanced eating patterns, and adequate sleep may improve mood and help you build the resilience to face challenges. Healthy habits for physical well-being may also support mental well-being, potentially protecting against some of the impacts of stress.
Physical activity—even short walks or at-home workouts—may help reduce stress by releasing endorphins, the body’s natural mood enhancers. Similarly, eating nutrient-dense foods when possible, drinking enough water, and limiting alcohol may support energy levels and overall health, helping the body better cope with stress.
Additionally, chronic stress often leads to poor sleep, which can exacerbate mental health challenges and physical health effects. Establishing a consistent sleep routine and creating a calming bedtime environment may significantly improve sleep quality for many. Those who find sleep difficult due to financial stress may also incorporate mindfulness or relaxation exercises into their bedtime routine to help them wind down.
How therapy may help
Therapy can be a valuable tool for managing the emotional impact of stress. A licensed therapist can help individuals explore their relationship to money and develop effective coping strategies for stress.
Exploring online therapy
An alternative to in-person treatment, online therapy can often be a more cost-effective and convenient option for addressing mental health challenges related to financial stress. Studies suggest that online therapy can often be just as effective as in-person sessions for managing anxiety, depression, and stress.
One of the key advantages of online therapy is its increased affordability—as it’s often more affordable than in-person care without insurance—making it more feasible for some people living with financial challenges. Online therapy also offers greater scheduling flexibility, allowing individuals to prioritize their mental health without having to take time off work or sacrifice other income sources.
Takeaway
Financial stress is a complex issue with far-reaching potential impacts on both mental and physical health. By understanding the link between financial difficulties and overall well-being, individuals may be able to take proactive steps to improve both their financial health and mental resilience. Whether it’s through effective money management, maintaining physical health, or seeking therapy, there are practical strategies for reducing financial stress and enhancing financial well-being.
How does financial stress affect physical health?
Any type of mental stress, including financial stress, can impact physical health. Common physical symptoms of stress include gastrointestinal issues, headaches, and muscle tension. Chronic stress can lead to more serious consequences, including heart disease.
What is the root cause of financial stress?
The root cause of financial stress tends to vary from person to person. For some, the challenges of managing debt may be at the root of financial stress. For others, problematic spending habits, insufficient income, or mental illness may contribute to financial stress.
What is the link between physical and financial health?
Research suggests that financial wellness is correlated with good physical and mental health, whereas financial stress can lead to adverse physical and mental health outcomes. Marital status may also impact financial and mental health, with unmarried individuals seeming to be more affected by psychological distress related to financial worries. Working with a financial advisor can help you relieve stress, engage in better financial planning, and learn to navigate financial struggles like debt stress.
What are the effects of financial stress?
Financial stress often has adverse effects on self-reported health measures. It can lead people to use unhealthy coping mechanisms, such as substance misuse, which can also have negative impacts on health.
Can financial stress make you sick?
While financial stress cannot directly make you sick, chronic stress can impact the immune system, making a person more susceptible to falling ill. Addressing financial problems and implementing a plan for more financial stability may relieve stress and have a positive impact on health.
What should you not say to a financially struggling person?
If you know that someone is experiencing financial concerns or economic difficulties, try not to say anything that could be perceived as judgmental. For example, don’t criticize their spending habits or tell them it’s their own fault they’re experiencing a lack of financial security. Instead, try to remain supportive, and only offer advice if they ask for it.
What are three signs that financial stress is impacting a person's well-being?
Financial stress may be impacting a person’s well-being if they’ve developed mood disorders like depression. If their financial burdens are always on their mind and they’re experiencing unexplained physical symptoms that could be stress-related, it’s likely that financial stress is impacting their well-being.
How can you stay calm during financial stress?
Staying calm during times of financial stress can be challenging. Seeking financial support from a professional may arm you with information and insight into more effective financial health behaviors. Many banks and credit unions offer free financial advising services that can help you navigate your financial situation.
Can financial stress cause trauma?
Financial stress can cause trauma in some cases. It may function as one of the risk factors for various mental health disorders, including post-traumatic stress disorder (PTSD).
Can financial stress cause heart problems?
Financial stress may indirectly contribute to heart problems, as any type of chronic stress can play a part in the development of heart disease. Using your health insurance to attend regular check-ups can enable you to keep an eye on any potential health concerns.
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