Financial Worries And Mental Health: Strategies To Help You Cope

According to a survey conducted by Ally Financial, approximately 45% of Americans experience financial worries. In the same survey, 72% of respondents reported that they no longer consider finances a taboo topic. More and more people are seeking ways to handle their finances and manage financial stress more effectively. Here, we’ll explore financial stress, its potential effects on mental and physical health, and strategies that may help a person cope with money worries more effectively. 

Potential effects of financial stress on mental health 

Financial stress can have a significant effect on a person’s psychological health and emotional well-being. In some cases, financial difficulties can lead to chronic stress, which can affect a person’s mood on a daily basis. Concerns about financial stability can lead people to worry about food insecurity, rent, and the ability to provide for themselves and, if applicable, their families. This can cause or contribute to anxiety and depression, which can sometimes also lead to dangerous coping mechanisms like alcohol or substance use—and research suggests that alcohol use may lead to even more anxiety. 

It’s also worth noting that research suggests that living in poverty can cause trauma and even contribute to forms of post-traumatic stress disorder (PTSD) in some cases. Not being able to meet basic needs for things like food, housing, and healthcare can be traumatic for many, and fear of losing the ability to meet these needs even when stable can cause stress and anxiety.

Potential effects of financial worries on physical health

The potential effects of financial stress can go beyond poor mental health. Psychological distress has also been linked to a number of adverse physical health outcomes, including heart disease, reduced immune response, and early mortality. 

In terms of heart disease in particular, chronic stress can lead to more inflammation in the body, which can lead to the buildup of plaque in the arteries. This buildup can cause coronary artery disease. In addition, people who already have a buildup of plaque in their arteries may be at risk of a rupturing of that plaque, which could lead to a blood clot that can cause a heart attack. 

Also, according to Yale Medicine, financial stress can lead the body to be in near-constant fight-or-flight mode, which can increase blood pressure and heart rate. The stress from money concerns can also lead to the release of cortisol, which can, in turn, increase blood pressure, cholesterol, and triglycerides. All of these impacts can potentially contribute to negative physical health outcomes over time.

How concerns about finances can affect relationships

In many cases, financial difficulty can also strain relationships. In a survey conducted by the American Psychological Association, 31% of respondents stated that money was a significant source of conflict with their partner. Also, arguments about money can be even more intense than arguments about other topics. In some cases, this may be related to different ways of viewing financial matters. Regardless of the reason, financial concerns can have a significant impact on interpersonal connections—not just in romantic relationships but also in relationships with friends, roommates, or family members. 

Tips for improving financial health

In many cases, people face financial worries through no fault of their own. The cost of healthcare, medication, food, and rent can significantly affect a person’s ability to keep up with expenses, and a difficult job market can add to these challenges. Rising inflation in recent years has also contributed to the financial stress of many individuals and families across the country. 

That said, it may also be possible for some individuals to implement a few strategies to improve their financial situation, which may reduce stress. The following are a few tips that may help with finances and related stress.

Take advantage of free financial counseling to improve financial health

Many people experience stress related to debt from credit cards or car loans. In some cases, they may have had no other option but to use a credit card or take out a loan. People struggling with high levels of debt may benefit from speaking with a professional who offers free credit counseling. In some cases, a credit counselor may be able to find a way to lower interest rates so that monthly payments are more manageable. Note that in some cases, this may affect a person’s credit score, so it may be worth asking about this risk with an experienced credit counselor. 

Set financial goals

Some people may find it daunting to set financial goals when they are struggling to get out of debt. However, research suggests that writing down your goals may make you more likely to continuously work toward meeting them. For example, writing a note to remind yourself to limit the number of times you eat out per month could help you stick to a goal of saving money by cooking at home more often.

Use free budgeting apps to save money and improve your finances

Budgeting can be challenging for anyone, but it can be especially difficult when a person is facing mounting stress resulting from financial difficulty. Some people may find it helpful to use a free budgeting app that allows them to immediately track spending habits on their phone. This strategy might help a person see where they may be able to make changes to their habits, and it may be easier than trying to write down expenditures with pen and paper. 

Strategies to cope with anxiety from financial worries 

While the above tips may help improve financial health, you may benefit from implementing a few strategies to mitigate stress in the meantime. The following techniques may be helpful for a person experiencing stress or anxiety of any kind.

Practice box breathing when you experience financial worries

Box breathing is a breathing exercise that may help reduce your heart rate and lower your stress response in the moment when you’re worried about money or another stressor. To practice this exercise, you can breathe in for a count of four, hold your breath for four seconds, exhale for four seconds, and hold for another four counts. Repeat two to three times.

Use progressive muscle relaxation to relieve financial stress

Progressive muscle relaxation can be practiced anywhere, whether you’re feeling stressed at work or at home. It typically entails tensing and relaxing muscle groups one by one with a sense of present awareness. You might consider starting at your toes and slowly working your way up to your head. This process may make you more aware of the contrast between tension and relaxation, which may provide some stress relief during moments when you’re facing financial worries.

Practice mindfulness meditation for improved mental health

Even five-minute mindfulness sessions may help relieve stress when financial concerns are weighing you down. While there are short, guided mindfulness sessions available for free online, you can also practice on your own by sitting quietly and simply observing your thoughts as they arise and pass. By watching thoughts as they come and go, you may eventually be able to reduce your impulse to identify with those that are negative and enjoy improved overall mental health as a result. 

Talk to a mental health professional about financial health and stress

While the above strategies may help reduce the effects of stress in the moment, speaking with a licensed therapist may help you address anxiety or stress more effectively. A therapist may be able to help you find personalized solutions that reduce some of the weight of the stressors you face and help you uncover any deeper concerns that can be difficult to see on your own. If you’re showing signs of a mental illness, like depression, an anxiety disorder, or a substance use disorder, they can also provide a diagnosis and suggest a treatment plan.

Connect with an online therapist about stress related to money

While finances can be a barrier to receiving mental health treatment for many people, alternatives to traditional, in-person therapy can often be more cost-effective. Online therapy tends to be more affordable than traditional in-person therapy without health insurance. This format also allows you to connect with a therapist at a time that works for you—even outside regular business hours. You can meet with them from home via phone, video call, and/or in-app messaging, so not having to commute can save you time and money too.

Numerous peer-reviewed studies indicate that online therapy can be as effective as in-person care in many cases. For example, one systematic review and meta-analysis suggests that online therapy can be effective for depression, anxiety, and substance use disorder, which can be common in people facing money-related stress.

Takeaway

Both financial worries and relationship conflict related to not having enough money can significantly affect mental and physical health. Seeking free financial counseling to find ways to improve your financial health and alleviate financial stress can be useful. Implementing evidence-based relaxation techniques when feeling stressed may also be helpful. Those who are experiencing stress, anxiety, or other mental health challenges stemming from financial worries may benefit from speaking with a therapist, and online therapy may offer a more cost-effective way to receive this type of care.