Financial Stress: Coping With A Common Worry

Medically reviewed by Nikki Ciletti, M.Ed, LPC
Updated October 10, 2024by BetterHelp Editorial Team

Stress associated with finances and spending is widespread. The American Psychological Association's Stress in America report for 2022 reveals that most adults (66%) felt money stress, particularly around affording basic needs such as groceries, housing costs, and health insurance. 

People may also experience financial stress due to loss of income, unexpected expenses, or pricey special occasions. Because of its unique challenges, many find that their financial worries also increase during the holiday season.

While money-related stress is an everyday occurrence for many, it can become overwhelming enough to interfere with our daily lives. We may feel less motivated to participate in social activities or lose interest in things we once found pleasurable. When left unaddressed, financial stress can take a toll on our physical health and potentially lead to more serious mental health issues.

But there are steps one can take to manage financial stress. In this post, we'll explore some of these and provide some tips on self-care strategies for stress management.

A close up of a woman in a white shirt as she stands near a window and gazes out with a sad expression.
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Financial stress doesn't have to be overwhelming

Financial stress strategies

Handling financial difficulty may require a combination of proactive steps and adaptability. While it may take some work and a change in spending habits, navigating the challenges, and laying the groundwork for a more stable financial future is possible. Here are some tips to put you on the path to financial recovery:

Assess your situation honestly

An excellent first step in handling financial difficulty is to take stock of your income, expenses, and debts. Create a detailed budget to grasp where your money goes and identify areas where you can cut back. This can provide a clear picture of your financial issues and where adjustments can be made.

Prioritize your expenses one at a time

Trying to tackle all your debts at once can be overwhelming and unmanageable. Instead, focus on covering essential expenses like housing, utilities, and food first. Trim discretionary spending on non-essentials temporarily to free up resources for crucial bills. 

Reach out to negotiate your expenses

You might consider contacting debtors to explain your financial situation honestly and explore options to alleviate the immediate financial pressure. You might negotiate for lower interest rates, extended deadlines, or reduced minimum payments on loans or credit cards. Many institutions offer hardship programs or modified repayment plans. You might also negotiate with your utilities, phone, and internet service providers for payment plans or discounts that reduce immediate financial strain.

Seek additional income streams

If possible, consider exploring supplementary sources of income. This might involve freelance work, part-time jobs, or monetizing a skill or hobby. Online platforms offer various opportunities for freelancing, tutoring, or selling handmade goods, providing avenues to boost your income.

Build an emergency fund

While it may seem challenging right now, aim to save money for an emergency fund as soon as possible. Even small, regular contributions can accumulate over time and serve as a safety net for future unexpected expenses. This fund can help prevent relying on credit or loans during emergencies.

Consider debt management strategies

If dealing with substantial debt, you might research debt management options. Consolidation loans, balance transfers, or debt settlement programs might be viable solutions to ease the debt burden. Consult with financial advisors or credit counselors who can offer free financial advice for your unique situation. 

Explore government and community resources

If the situation is particularly urgent, investigate available government assistance programs or community resources designed to support individuals facing financial hardships. These may include unemployment benefits, food assistance programs, housing aid, or charitable organizations providing financial relief.

Educate yourself and adapt

Financial literacy is a powerful tool. Educate yourself about financial health issues like personal finance, budgeting, and prudent money management. Adapt to changing circumstances by continuously learning and implementing intelligent financial practices that can help prevent difficulties in the future.

Prioritize mental and emotional well-being

It's critical to manage your mental health during times of financial strain can have numerous benefits. You will likely be less able to handle financial difficulties or stress if you are struggling with your mental health. Practice self-care, seek support from friends and family, and consider professional guidance if needed. 

Self-care for financial stress reduction

Any type of stress can take a toll on our mental and physical health, but money worries often come with a unique set of challenges. 

For example, we may have emotional difficulties associated with gift-giving obligations during the holidays or on birthdays or pressure around continuous calls from debt collectors. If we're caring for a sick or injured loved one, medical debt can drain not only our bank account but our mental and emotional state, as well.  

A self-care plan is crucial to managing the stress associated with financial issues such as these. Here are some stress-reduction strategies that might help:

  • Practice mindfulness techniques or meditation to reduce anxiety and calm the mind. Visualization techniques where you imagine yourself in a peaceful and calming environment can also be effective. 
  • Engage in deep breathing exercises, like diaphragmatic or box breathing, to activate the body's relaxation response and lessen physical symptoms of stress. 
  • Stay physically active to reduce stress hormones and release endorphins that improve mood. A comprehensive body of research indicates that exercise can also help improve concentration and sleep (two common symptoms of stress) and enhance cognitive functioning.
  • Eat a balanced diet rich in nutrients to support your body in managing stress. Avoid excessive caffeine, sugar, and processed foods. Aim for a diet high in fiber and omega-3 fatty acids. Cultured and fermented foods like natural yogurt, kefir, miso, and kimchi are also highly beneficial
  • Prioritize good sleep hygiene. Aim for 7-9 hours of quality sleep per night to help your body recover, reduce stress, and promote resiliency against anxiety and depression
  • Adopt time management strategies to reduce feeling overwhelmed, such as setting realistic goals and organizing and prioritizing tasks to accomplish them. You may also set healthy boundaries by learning to say no when needed to avoid overcommitting yourself. 
  • Connect with friends, family, or support groups. Sharing feelings and experiences can provide perspective and remind you that stress is a normal part of everyday life— you can overcome and move beyond it. 
  • Take breaks from screens (phones, computers, TVs). A growing body of research on the effects of excessive screen time and media exposure shows it can cultivate poor mental health in various ways besides significantly contributing to stress. Too much screen time can cause anxiety, depression, and comorbid conditions like ADHD and substance use disorders. One study indicated that young people indulging in excessive screen time experienced "non-adaptive or negative thought patterns, a lower sense of fulfillment in life, and a propensity for health concerns throughout maturity.'
  • Make time to engage in activities that bring you joy and relaxation, such as reading, listening to music, gardening, or hobbies. 

How online therapy can help

Freedom from money stress is possible if you have a strategy for both your financial and mental well-being. If you feel overwhelmed and you're struggling to manage stress, speaking with a mental health professional can help. A counselor can help you recognize symptoms of excessive stress, understand how they affect your behavior and emotions, and develop coping strategies to manage them.  

Sometimes, uncontrollable stress is a sign of a deeper mental health issue like an anxiety disorder, depression, post-traumatic stress disorder (PTSD), and others. A therapist can assess your symptoms and, if applicable, diagnose any underlying mental health conditions you might have. If you have an underlying condition, your therapist may use treatment techniques like cognitive behavioral therapy (CBT) to help you:

  • Uncover the thoughts associated with mental dysfunction. 
  • Reframe negative thoughts in a more realistic, productive way.
  • Manage difficult emotions that arise from negative thoughts.
  • Change problematic behaviors associated with your thoughts.
  • Develop coping skills to manage mental health challenges. 

Online platforms like BetterHelp offer individuals the option to speak with a licensed mental health practitioner from the comfort of home, often at the same price as traditional therapy with insurance. BetterHelp therapists are available via video, online, text, and voice chat on your schedule. 

Getty/AnnaStills
Financial stress doesn't have to be overwhelming

Research shows that online therapy using methods like CBT is as effective as in-office treatment for mental health problems associated with stress, such as anxiety and depression, as well as a large variety of other conditions, including PTSD, panic disorders, phobias, bipolar disorder, and substance use disorders. If you're having a hard time coping with financial stress on your own, reach out to a BetterHelp professional to gain control and move on with better mental health and well-being. 

Takeaway

If you are dealing with significant financial stress, there are steps you can take to improve your financial well-being and manage your stress. By improving your financial literacy, cutting back on unnecessary expenses, increasing your income, and reaching out for help, you can improve your financial situation. If you are having difficulty managing stress related to your finances or other issues, you can reach out to an online therapist at BetterHelp. 

Freedom from money stress is possible if you have a strategy for both your financial and mental well-being. If you feel overwhelmed and you're struggling to manage stress, speaking with a mental health professional is an essential part of that strategy. A counselor can help you recognize symptoms of excessive stressful triggers, understand how they affect your behavior and emotions, and develop coping strategies to manage them.  

Sometimes, uncontrollable stress is a sign of a deeper mental health issue like an anxiety disorder, depression, PTSD, and others. A therapist can assess your symptoms and, if applicable, diagnose any underlying mental health conditions you might have. If you have an underlying condition, your therapist may use treatment techniques like cognitive behavioral therapy (CBT) to help you:

  • Uncover the thoughts associated with mental dysfunction. 
  • Reframe them in a more realistic, productive way.
  • Manage difficult emotions that arise from them.
  • Change problematic behaviors associated with them.
  • Develop coping skills to manage mental health challenges. 

Online platforms like BetterHelp offer individuals the option to speak with a licensed mental health practitioner from the comfort of home, often at the same price as traditional therapy with insurance. BetterHelp therapists are available via video, online, text, and voice chat on your schedule. 

Research shows that online therapy using methods like CBT is as effective as in-office treatment for mental health problems associated with stress, such as anxiety and depression, as well as a

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