Financial Stress
Financial Stress relates to a stress reaction resulting from your financial situation that can be exacerbated by a feeling of scarcity (Ryu & Fan, 2023). Financial stress is a common concern people face. Short-term stress includes unexpected but fleeting expenses, such as a car repair costing double the amount you imagine. Long-term financial stress is chronic, including paying off student loans and other debts.
Navigating economic challenges can burden one’s emotional, physical, and mental well-being. Concerns surrounding finances often result in ignoring the problem, but confronting the issues and creating a plan can reduce the burden. Stress can manifest in physical symptoms, including headaches, stomach problems, panic attacks, and tension in the muscles (Ryu & Fan, 2023). At the same time, stress can exasperate anxiety and increase a sense of hopelessness (Ryu & Fan, 2023). Other psychological symptoms include negative and intrusive thoughts and an inability to focus.
Tips for dealing with financial stress
1. Budgeting and Managing Money
While looking at your funds closely may feel uncomfortable, allocating money is essential in reducing financial stress. Looking at spending habits can be an avenue to assess money leaks and find routes to cut down on some expenses. Small spending reductions can contribute to a significant amount of money. If applicable, work on a realistic debt repayment plan. Creating a timeline to pay off can help you feel more on track with your goals and spending.
2. Talk to your Partner or Spouse.
Talking openly to you and honestly can add relief and support to reduce feelings of isolation and strengthen the relationship.
3. Seek Social Support
Instinctively, we may withdraw from interacting with our friends and family when struggling. Seeking sources of emotional support with trusted individuals to share your worries can diffuse feelings of stress.
4. Seek Professional Help
A financial planner provides an impartial outsider to evaluate current financial situations. Additionally, a professional may offer new perspectives and insights on managing money.
5. Self-Care
When struggling with financial stress, we often overlook and fail to consider our well-being. It may feel frivolous to engage in activities for ourselves. Taking time to do things you enjoy and prioritizing sleep, exercises, and social interaction can help improve your ability to deal with challenges.
Working towards a plan and seeking others for support and advice can provide a sense of control and accomplishment.
Therapy for financial stress
Therapy can help to explore sources of financial stress and improve overall well-being. This includes:
1. Identifying and Addressing Psychological Factors
Financial stress can relate to other mental health concerns such as anxiety, depression, low self-esteem, and even a history of trauma. Therapy offers a safe space to explore any underlying concerns contributing to financial stress and money-related behaviours.
2. Coping Strategies
Financial stress can lead to developing maladaptive coping strategies such as drinking more, avoiding, and impulsive spending. Learning healthy and adaptive coping strategies can contribute to dealing with stress more effectively.
3. Challenge Negative Beliefs and Behaviours
Financial stress can be prevalent due to self-limiting beliefs surrounding money impacting financial decisions. Therapy can help to foster adaptive perspectives towards money-related beliefs and cultivate a healthier relationship with money.
Therapy can be a valuable tool in reducing feelings of stress. Vaughan Counselling and Psychotherapy offers a Pay What You Can program (PWYC) with reduced rates and fees to support your struggles. Reach out to Angela and Melissa, our student interns offering sliding scale fees.
Ryu, S., and Fan, L. (2023). The Relationship between Financial Worries and Psychological Distress Among U.S. Adults. Journal of Family and Economic Issues. 44(1), 16-33. https://doi.org/10.1007%2Fs10834-022-09820-9