Why Money is the Leading Cause of Stress
Do you have a solid understanding of your spending habits? Do you have a hard time cutting back on your spending habits? Do you have a weekly budget and stick to it? Do you have a lack of financial resources?
Do you have poor money management skills? Do you regularly experience money related worries? Are you impulsive when you get your pay-check. Do you go shopping when you're stressed?
Sadly, millions of people in the community are having to deal with financial baggage on a daily basis. Whether it be associated with loan debts, credit cards, gambling or shopping habits to dealing with household or child related expenses.
Lets not beat about the bush here - financial decisions; whether they be daily, weekly, or annually can become the most stressful, complex and impactful choices we can make. Coupled with the fact that poor money-management skills or a lack of financial resources can lead to stress related responses that can potentially spill over into your relationships or affecting your health and wellbeing.
What is Financial Stress?
“A condition that is the result of financial and/or economic events that create anxiety, worry, or a sense of scarcity, and is accompanied by a physiological stress response."
Financial Stress Research
According to the American Psychological Association (APA), money is the top cause of stress in the United States. Their research found that nearly 2 in 3 adults (64%) say that money is a significant source of stress in their life, more than politics, work and family. Furthermore, around half of adults (52%) say they have experienced negative financial impacts due to the pandemic. [1]
Finances are one of the top issues that lead to frequent disagreements among couples. And couples who are under financial stress are more likely to be hostile and aggressive with each other and less secure and happy in their relationships. Indeed, some studies highlight money as a topic of marital conflict in the home - even leading onto divorce. [2]
The Negative Health Effects of Money Stress
Plenty of research study evidence exists portraying how financial stress can increase your risk of poor health and negatively impact your productivity and mood.
In drawing your attention to a recent mind-over-money national U.S.A. survey conducted Capital One Financial Corporation amongst 1,011 adults over the age of 18. Their study surfaced some interesting results. From a personal health perspective they found that financial stress caused: Feelings of fatigue (43%); Difficulty concentrating at work (42%); to Sleep interferences (41%). [3]
Stress amongst the survey respondent's was also linked to worse financial attitudes and practices, and those who experience higher level of stress were less likely to save on a regular basis or plan their spending to feeling out of control. [4]
Lets also be mindful that people who report high debt (compared to assets) are also more likely to feel greater levels of mental stress and depression. Furthermore, they tend to have higher blood pressure too, or even contribute to chronic health problems such as diabetes and heart disease.
Financial Stress Management Tips
Everyone will have different financial stress triggers. Therefore, a good starting point would be to identify what needs the most attention. By this, I mean being honest with yourself and staying positive and realistic at the same time. You may consider taking the following small steps to get you back on track.
Tip 1 - Identify what needs the most attention - In other words, be bold and get some paper and start writing down your current biggest money challenges you're up against.
Tip 2 - Perform a full accounting of your debts - start talking out your financial issues by seeking out a certified and trustworthy Financial Counsellor and arrange a meeting.
Tip 3 - Focus only on what you can control - don't get flustered or stressed out about things you cant really control. Hence, the trick is to focus on what you can control.
Tip 4 - Try to avoid impulse buying - This is a big one. Your already in a stressful state, so don't make shopping your stress reliever or seek out things you simply cant afford.
Tip 5 - Survey your Food and Beverage Habits - Everyone has differing food tastes, yet changing your food eating habits or eating less often can help to build-up your immune system.
Tip 6 - Track Your Spending Habits - Create a budget and use it to track what comes in (income), what goes out (expenses), on a weekly basis.
Tip 7 - Smart Spending and Saving - Start spending more wisely and develop a saving mentality. Maybe buy some bulk grocery items, or shop online (saves petrol and time)
Refs:
[1] American Psychological Association (APA)(2020). 'Stress in America 2020 - A National Mental Health Crisis.' PDF Survey Report cited online at https://www.apa.org/news/press/releases/stress/2020/sia-mental-health-crisis.pdf
[2] Papp, L.M., et.al. (2009).'For Richer, for poorer: Money as a topic of marital conflict in the home.' Family Relations; February, Vol.58, (1), pp. 91–103.
[3] Capital One Financial Corporation (2020). 'Big-Picture thinking leads to the right money mindset.' Article cited online at https://www.capitalone.com/about/newsroom/mind-over-money-survey/
[4] Gaetano, C. (2020). 'Survey: 77 percent of Americans stressed over finances.' NYS Society of CPA's. Online article cited at https://www.nysscpa.org/news/publications/nextgen/nextgen-article/survey-77-percent-of-americans-stressed-over-finances-012820. Published Date: January 28, 2020.
Image Credits:
[1] Pexels - Mikhail Nilov [2] Pexels - Karolina Grabowski [3] Pexels - Mikhail Nilov
