Coping with Financial Stress: Tips for Better Mental Health
Day 20 of 30
As a dedicated mental health advocate and counsellor, I’ve come to value just how powerful open, honest conversations about mental health can be. This November, I’m embarking on a 30-day writing journey, sharing a new mental health article each day, not only to raise awareness but to raise funds for Movember.
Financial stress is a commonly encountered experience that impacts not just our wallets but also our mental well-being. It’s a leading cause of anxiety, depression, and strained relationships, creating a cycle where financial troubles negatively affect mental health, and poor mental health, in turn, makes it harder to address financial challenges. If you’ve ever felt overwhelmed by money worries, know that you’re not alone, and there are practical strategies to help you navigate these challenges.
Today's article highlights the delicate relationship between financial stress and mental health, providing actionable tips to help you cope, rebuild, and thrive. While financial difficulties can feel all-consuming, taking small steps to regain control can improve your mental health and empower you to tackle the issues at hand.
The Connection Between Financial Stress and Mental Health
Financial stress doesn’t just live in the background—it can dominate your thoughts and seep into every aspect of your life. Here’s how it often manifests:
Persistent anxiety
Money troubles often lead to heightened anxiety. Worrying about overdue bills, rising debts, or unexpected expenses can create a constant state of unease, affecting sleep and decision-making abilities.
Depression and hopelessness
For many, financial stress can feel like an endless cycle, leading to feelings of despair and hopelessness. These emotions can lower energy levels, diminish motivation, and make daily tasks feel overwhelming.
Impact on Relationships
Money problems are one of the most common sources of tension in relationships. Disagreements over finances can lead to conflict, creating emotional distance, or, in some cases, even causing relationships to break down.
Physical Symptoms
Chronic stress can take a toll on the body, leading to headaches, fatigue, and weakened immunity. Financial anxiety frequently exacerbates the emotional burden, creating a vicious cycle that is challenging to break.
Understanding these connections can help you recognise when financial stress is taking a toll on your mental health. Acknowledging its impact is the first step toward regaining control.
Practical Tips for Coping with Financial Stress
Coping with financial stress requires a combination of practical and emotional strategies. By addressing both the financial issues and their emotional effects, you can start to find relief.
Create a budget and stick to it.
A clear budget is one of the most effective tools for managing financial stress. Start by listing your income and all expenses, including essentials like rent, utilities, and groceries. Then identify areas where you can cut back or reallocate funds.
Why it works:
A budget provides structure and clarity, helping you feel more in control. Even small changes, like cutting back on non-essentials, can create breathing room in your finances.
Shift Focus to What You Can Control
It’s easy to feel overwhelmed by factors outside your control, such as rising costs or unexpected expenses. Instead, focus on actionable steps you can take. This might include:
Contacting creditors to negotiate payment plans.
Exploring free resources for financial advice, such as the Australian Governments website - Moneysmart.
Seeking temporary income opportunities, like freelancing or selling unused items.
Why it works:
Focusing on what you can control reduces feelings of helplessness and gives you a sense of progress.
Speak Openly About Your Financial Worries
Money problems are often stigmatised, which can make it hard to reach out for help. But sharing your concerns with someone you trust—a partner, friend, or financial advisor—can provide relief and new perspectives.
Why it works:
Talking about your stress lightens the emotional load and opens the door to advice or support. Many people find that simply expressing their worries reduces anxiety.
Avoid Quick Fixes
When financial stress feels unbearable, it’s tempting to look for immediate solutions like payday loans or “buy now, pay later” schemes. However, these often come with high interest rates that can worsen your situation.
Instead, focus on sustainable solutions, such as adjusting your spending or seeking free financial advice.
Why it works:
Avoiding quick fixes prevents further financial strain and helps you focus on long-term stability.
Prioritise Your Mental Health
It might feel counterintuitive to focus on self-care during financial hardship, but protecting your mental health is vital. Incorporate low-cost or free self-care practices into your routine, such as:
Daily walks or light exercise.
Journaling to process your thoughts.
Mindfulness or meditation to reduce anxiety.
Why it works:
Taking care of your mental health boosts resilience, helping you tackle financial challenges with a clearer mind.
Set small, achievable goals.
Large financial goals, like paying off a significant debt or building savings, can feel overwhelming. Break them into smaller, manageable steps. For example:
Aim to save $10 a week instead of a larger sum.
Focus on paying off one debt at a time.
Why it works:
Small wins build confidence and momentum, making larger goals feel more achievable.
Addressing the Emotional Impact of Financial Stress
Dealing with financial stress isn’t just about managing money—it’s also about addressing its emotional toll. Here are some strategies to help:
Reframe negative thoughts
Financial stress often leads to self-criticism or feelings of failure. Challenge these thoughts by reminding yourself that financial struggles are common and not a reflection of your worth.
Focus on Gratitude
While it may be difficult, finding small things to be grateful for can shift your mindset. Gratitude doesn’t erase financial stress, but it can provide a sense of perspective.
Seek professional help.
If financial stress is significantly affecting your mental health, consider speaking to a counsellor or therapist. They can help you process your emotions and develop coping strategies.
When to Seek Professional Financial Help
If you’re feeling overwhelmed, professional financial advice can be a game-changer. Organisations like Moneysmart offer free, confidential guidance tailored to your situation. They can help with:
Creating a debt repayment plan.
Accessing government or charitable support.
Free financial counselling.
Understanding your financial rights.
Seeking professional advice can provide clarity and actionable steps to improve your situation.
How Employers Can Support Financial Well-Being
Employers play a vital role in reducing financial stress. If you’re an employer, consider implementing support systems such as:
Offering financial wellness programs or workshops.
Providing access to mental health support for employees.
Being flexible with pay schedules or offering salary advances.
Creating a supportive environment can improve employee well-being and productivity.
Financial stress is challenging, but it doesn’t have to define your life. By taking proactive steps—whether creating a budget, seeking support, or prioritising your mental health—you can begin to reduce the burden and regain a sense of control.
Remember, you’re not alone. Financial struggles are a common experience, and there are resources and people who want to help. If you’re ready to take the next step in supporting your mental health, reach out to Bent Couch Counselling or explore the resources mentioned in this article.
Your mental well-being matters as much as your financial health, and both deserve care and attention.
These articles tackle vital topics related to mental well-being, many of them drawn directly from my own experiences and insights gained through my work in Bent Couch Counselling.
Movember’s mission is to support men’s mental health, address prostate and testicular cancer, and prevent suicide, which is a cause close to my heart. My personal connection to Gay Fathers Worldwide has encouraged me to raise $10,000 as part of Movember. I encourage you to donate here to an incredible cause.
By sharing personal perspectives and strategies over these 30 days, I hope to foster deeper understanding and connection around mental health issues. This project is about more than just reading or writing; it's about taking action.
I hope sharing my experience can be a guide, perhaps even a comfort, for others on a similar path.
