How to deal with financial stress

By Citizens Staff

Even during the best of times, financial problems are a significant source of stress and anxiety for many of us. According to a study by the FINRA Investor Education Foundation, 53% of Americans report that thinking about their personal finances makes them anxious and the 2019 "Stress in America" survey by the American Psychological Association finds six in 10 adults identify money (60%) as significant sources of stress.

Money concerns can take even more of a toll on us, and that stress can negatively impact our health and well-being. It’s important to know that there’s help and advice available to you. Citizens is here to help with our customer service teams and by frequently updating our resource center with new and helpful information.

Good health and well-being, both physical and mental, should be top priorities for everyone right now. When we’re panicked and worried about having enough money, both our physical and mental health can suffer. Financial stress can cause negative impacts on everything from your mood and decision-making abilities to your sleep quality and your immune system. In the long term, high stress levels can even lead to serious health consequences, like heart disease, high blood pressure, and increased risk of stroke.

The good news is that money stress is manageable, and there are actions you can take immediately to reduce the amount of stress you might be feeling right now.

Financial worries are often the result of being disorganized or feeling overwhelmed by not having a firm grip on your situation. Start by sitting down and gathering your financial details in one place to assess where your budget — and bank account — is really at.

Updating your budget right now can seem like a stressor, but being aware of your expenses sets you up for a greater sense of control over your situation. And when an emergency comes up, you have the power to act quickly and revisit your budget to cut costs or find savings.

Check out our monthly budgeting calculator for an easy way to input and manage your expenses.

Once you have insight into your budget, you can set some positive goals and make a plan to get you mentally moving forward. Highlight the items that are causing you stress, like paying your mortgage or rent, covering credit bills, or managing your student loan debt. Defining these goals, even if they’re short-term needs, can help reduce anxiety and make them seem actionable. Take small steps, adjust your budget and set smaller milestones that will get you there by achievable increments.

Often simply not knowing about a money-related topic can be a source of stress. So if there's something you don't know, slot some time to do some research online or talk to a financial planner to boost your confidence and financial health education.

Communication is key for strong relationships, but it’s especially important when dealing with stressful financial issues, especially if you’re managing money with a partner.

Talking through your struggles can help alleviate stress, and solving problems with a partner can be much more effective than to taking it on alone. Your friends and family can also be good sources of advice or act as sounding boards for talking about your situation and feelings. The important thing is not to put even more stress on yourself by trying to handle things on your own.

It’s also helpful to communicate with the businesses you deal with, like your bank, utility company, or credit card issuer. They may be able to offer advice or work with you to find a solution if you’re worried about paying your bills.

Professional advising and counseling can be helpful options for gaining outside perspectives and reliable recommendations.

A professional financial advisor can offer objective advice and help set you on the right path to meet your financial goals. It’s generally easy to make an appointment and usually possible to get started with a free consultation.

Credit counseling can be a good idea if you need assistance getting a handle on your debt. The National Foundation for Credit Counseling (NFCC) is a nonprofit network of trained debt counselors who can help assess your finances and learn about debt-relief options.

Speaking to a therapist or psychologist is another option that can give you some additional guidance in dealing with difficult circumstances. They can get you thinking about your overall mental health and help you find tools and techniques to cope with and reduce the stress in your life.

Physical exercise and activity can do wonders to relieve stress and anxiety and improving your overall health. So put down your phone and go for a walk, or schedule a regular workout or exercise session into your day.

Healthy eating is also incredibly important. Make plans to try a new recipe and set a schedule for shopping for healthy foods. Eating healthy doesn’t have to be expensive, but it can be very therapeutic, alongside taking the time to prepare and cook a healthy meal!

Eating a balanced diet can also have a positive impact on your ability to deal with stress. Try creating a weekly meal plan and stocking your fridge and pantry with healthy snacks and ingredients to make mealtimes easier and less stressful. Cooking and eating a healthy meal can be a relaxing and productive way to relieve stress — and to help your body counteract the negative effects of stress.

Mental health is very closely connected to physical health, which is important to keep in mind when seeking ways to reduce stress. Taking good care of your body can help ease the toll stress takes on you.

Activities like meditation or mindfulness can help you relax, focus on being present and positive, and add a big boost to your mental health. These practices are easy to try: there are many online platforms, videos, and resources that you can access for free. Other ideas for redirecting your mental energy could be taking a course online, learning a new skill, or simply making an effort to reduce your screen time and cut back your media intake. Try reading a book!

Also, as a result of financial stress, some people turn to negative habits like smoking, drinking, or emotional eating. Be aware of your behavior and think about ways to adopt healthier habits.

Money management is a significant concern for many of us right now, but feeling stressed and anxious about your situation won’t help move you toward a solution. Instead, take small steps to implement simple action items to turn stress into positive changes and help you feel more in control of your situation.

Our customer service teams are available to listen and offer guidance to help you be ready for right now, and for what’s next.