Understanding financial stress and how it can impact your physical and mental wellbeing is key to living the life that you’ve always dreamt of.
Financial stress, if not dealt with immediately, can cause higher diastolic blood pressure, increased heart rate, greater muscle tension, worsened digestive symptoms, depression, eating disorders, insomnia, and anxiety.
According to many sources, ‘Debts’ is the number 1 cause for financial stress. A lot of us get ourselves stuck in this vicious debt cycle from a very young age - sometimes as soon as we experience financial independence.
From student loans to Credit cards, to impulse shopping on e-commerce sites, we fail to realize that these spending habits are detrimental to our physical, mental, and financial well being. While all of the above may serve as temporary solutions and gratifications, they only suck you deeper into the debt cycle, resulting in financial stress and anxiety.
So how do we know if we are experiencing financial stress and anxiety?
Here are some signs that you might want to look for:
- Running out of money by the end of every month
- Constantly worrying about money
- Experiencing anxiety, insomnia, and depression
- Overdue bills
- Caught in an endless cycle of borrowing money
- Your expenses are always more than your income
- You actively avoid thinking of your financial situation
- You avoid phone calls in the fear that they might be debt-collectors
If you’re experiencing any of these warning signs, it’s quite possible that your financial well-being is in jeopardy. And it’s time to make a conscious change, and look at how we can successfully overcome financial stress.
5 Ways to Deal with Financial Stress
Here are some ways to get rid of financial stress and anxiety:
Notice the Warning Signs
One of the first things to do is to recognise the signs and acknowledge that you are experiencing financial stress and anxiety. If you don’t acknowledge these feelings, you cannot move to the next step and take the necessary actions to deal with the situation.
Declutter your Budget
This is a very crucial step in getting rid of financial stress and anxiety, simply because it requires you to re-look into your budget, understand your spending habits, change your priorities, and rework your budget. Regular budget checkups are essential to improving your financial health. Take control of your finances by setting aside some time to schedule, organize, and declutter all of the money coming in and out of your bank account. Prioritise your debts and start clearing them one by one. The more control you have over your finances, the less stress you will feel.
Create Extra Sources of Income
If your expenses are more than your income and you’re running out of money by the end of each month, it’s clear that your income isn’t meeting your financial needs. While managing your money smartly can address a part of the problem, thinking of ways to make some extra money can speed up the process. Here are some side hustle ideas that you could consider.
Anxiety constricts your thinking and inhibits your ability to make sound decisions. Negative thoughts aren’t going to help you feel better about your situation. Adjust your self-talk to improve your mental attitude. Instead of internally saying, “I can’t increase my income,” try saying “I can and I will reduce my spending!”. Of course, thinking positively won’t magically pay your bills or stretch your budget, but it can help calm your fears.
Talk to Someone You Trust
Talking about your financial concerns may feel uncomfortable and embarrassing, but sharing your fears and discomfort about your situation can be an important step toward reducing stress levels. Communicating can help you feel less alone and more supported. If you are single or you manage your finances on your own, the stress might weigh you down even more. So, Ask for Support! The most important thing is to address your financial stress and find strategies that work for you. It may take some time and lifestyle adjustments, but remember, leading a peaceful life is what matters most.
The most important thing is to address your financial stress and find strategies that work for you. It may take some time and lifestyle adjustments, but remember, leading a peaceful life is what matters most.
(Check out 'Learn & Grow with Wizely' 'to read and learn all about personal finance and financial planning.)