4 Tips to Manage Financial Stress

Financial distress affects the majority of people. Money is vital — it allows you to provide for your needs, as well as your family’s, and to seek even the simplest of life’s pleasures.

The economic recession that followed the coronavirus outbreak — on top of pre-existing debts and mortgages — has made most of the world worry more about finances.. Financial stress during these uncertain times seems only normal and common.

The good news is that while many may be having a hard time making payments and managing resources, there’s always a way to cope with financial stress.

How Financial Stress Affects You

Financial stress is increasingly becoming the number one stressor among Canadians. While it is true that money is not the end-all be-all, financial struggles can take a significant toll on our well-being. We can get overwhelmed with stressing over money — or lack thereof.

Your health, relationships, and quality of life are at risk when the burden of stress leads to:

Depression and anxiety

Research shows that financial issues can lead to mental health problems. Depression and anxiety remain the top risks when one is struggling with money and is unable to pay their dues. When you live with money problems, you may often feel down and hopeless, and unable to focus and make decisions. At a certain point, you might stop seeing and talking to friends and family, which makes you feel more alone and aggravate feelings of stress.

Unpaid bills and income loss can put you in a constant state of worry, leaving you vulnerable. Look out for common symptoms of anxiety such as sweating, shaking, restlessness, pounding heartbeat, and panic attacks.

Poor physical health

Besides depression, stressing over money has its fair share of physical symptoms, too. The anxiety over unpaid bills and incoming expenses might cause the loss of sleep. Those affected may also develop weight and appetite problems, whether due to overeating or skipping meals to save money.

Financial problems might pile up for those who already have existing health conditions. When migraines, diabetes, high blood pressure, gastrointestinal problems, or heart disease are left untreated, it can lead to life-threatening illnesses, plunging us further into health-related debt.

Relationship difficulties

One of the most common arguments that couples have is over money. Financial problems can affect your marriage. If unattended, money-related stresses can chip away at the foundation of your relationship. You and your partner might not be able to stand each other the longer these problems are drawn out. It’s important to talk matters over calmly and to seek couples counselling to keep your relationship — and family — intact.

Unhealthy coping mechanisms

Some who struggle to cope with the financial stress might turn to substance abuse, including alcohol and prescription or illegal drugs. Others feel that what remains of their money has little to no worth, so gambling, overeating, and unreasonable purchases seem like a good idea. Those who already struggle with their mental health might resort to self-harm, or develop suicidal thoughts.

Health Care Delayed Is Health Care Denied

While it seems wise to keep the costs at a minimum during financial troubles, remember to prioritize mental and physical health care. After all, your overall well-being and financial state are closely interconnected.

Your financial problems have an adverse effect on your health. You can get depressed or anxious when you constantly think and stress about your debts, dues, and other financial issues.
Poor mental health manifests physically. Symptoms like weakness, sleeplessness, appetite and digestive issues, stem out of mental stress. They can frequent and disrupt your day-to-day affairs.
You can’t manage your money well with poor health. If you’re not feeling good, mentally and/or physically, you can’t function properly. Focusing and deciding on important money-related tasks might seem like a heavy chore, and your lack of energy to attend to your bills might lead to unpaid dues piling up. Exhaustion due to depression or anxiety can also prompt you to take time off work, which means income loss for a certain period.
More income loss and more unpaid bills worsen your mental and physical state. You feel trapped, hopeless, as you’re more broke and more sick than before. How can you keep up when it all gets too overwhelming?

Dealing With Financial Stress

There is no one “best way” to cope with financial stress, but you can certainly take steps to learn how to effectively manage your financial situation. Dealing with your money problems head on is daunting but doable. If you are keen in taking control of your life, reducing stress, and building a secure future for you and your loved ones, trust that you can find the way out.

Accept the “now”

No one knows how the next few months or years following the pandemic is going to turn out. This is a valid cause for anxiety, but we can overcome it slowly and effectively by accepting our current situation. Life is going to be tough for quite some time, but there are things we still have control over. We can begin by focusing our time, energy, and thought into these to-do’s.

Do a financial overhaul

If money is your major stressor, it’s best to stop postponing the stock inventory. What resources do you have, and where do they fall in your monthly budget? Consider the following:

All sources of income – Any salary, bonuses, benefits, alimony, child support, or any interest you receive
Your current spending – Assess the following:
- Priorities (like food, bills, mortgage, education)
- Spending patterns (like takeout meals versus cooking what’s inside the fridge, retail therapy when you’re stressed, or impulse buying)
- Small, seemingly irrelevant expenses that can pile up over time
Your debts – Slowly chip away at your list of past-due bills, late fees, and minimum payments due, any money owed to family or friends.
Offsetting small pleasures – Try cutting down on non-essential spending, reducing daily expenditures (like expensive coffee, dessert, break-time cigarettes).
Future financial plans – This includes your financial problems, how you intend to solve them, your resources for putting your plan into action, monitoring your progress, contingencies for setbacks.
Don’t beat yourself up

Being honest with yourself and your loved ones shouldn’t feel like a punishment for making financial “mistakes.” While you may feel that piling debts and depleting accounts are a heavy burden to bear, it is not the end of the world for you. And you’re not alone — other people have money problems of their own, too.

Instead, use this as an opportunity to rethink your current situation, and recreate a lifestyle that won’t be a problem for your pocket. Employ stress management techniques so you can breathe out these worries at the end of the day (or pay period).

Talk to Someone

Do you feel awkward or embarrassed when you’re asked about your finances? You shouldn’t be, because bottling up your worries proves bad for your overall well-being. Money issues have been relatable now more than ever, and your friends and family can be a source of comfort and reassurance in these trying times. Talking always helps to put things in perspective.

Sharing and expressing your problems lightens the load, and while it doesn’t solve your problems, it’s an important step in relieving you from your financial stress. The freer your mind, the more likely you are to focus on taking charge of what you can control.

If you’ve decided to seek professional advice, you can reach out to Wendy Limarzi’s Depression & Relationship Counselling Services. We provide goal-oriented counselling services that can help you take action in improving your life. Call (519) 253-1519 to book an appointment with us.