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FEBRUARY 2024

How to handle financial stress

Your palms are sweaty, you haven’t been able to sleep soundly for a week and your stomach is in knots. You may be experiencing financial stress, a condition that’s affecting 72% of Americans, according to the American Psychological Association.

But you don’t have to suffer forever. There are strategies you can follow to lower your stress about money. See if they can help you find a sense of peace — even empowerment — over your finances.

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person with calculator and coins budgeting with a pie chart

Money worries can hurt your physical, emotional and social well-being

Financial stress can be described as worry, fear and anxiety about economic or financial events. It can sneak up on you out of nowhere and show up anytime, day or night. Chronic financial stress can cause insomnia, headaches, fatigue, weight loss or gain, muscle tension, stomach concerns, and depression. Over time, it can lead to an increased risk of heart attack or stroke.

And it doesn’t stop there. Worries about money can take a toll on your relationships with your partner, family and friends. It can hurt your focus at work. The stress you feel may make you more irritable and cause you to argue or lash out at loved ones. Research backs this up — studies show that finances are what couples fight about most.

Men and money

Cultural stereotypes can add to the stress. According to a Pew Research Center survey, 72% of American men say a man needs to provide for his family to be a good husband or partner.¹ This pressure to provide can bring up feelings of guilt or shame if a man doesn’t feel like he’s living up to his potential. Society may also condition men to associate money with their success as individuals or a mark of their character. Money troubles can hurt their sense of self.

6 steps to financial peace

Fortunately, there are actions you can take to help you handle financial stress in a healthy way. Follow these steps to take control of your money.

Take inventory.

If you’ve been stashing your bills in a drawer, it’s time to take them out. Just because they aren’t in plain sight doesn’t mean they’ll just go away. It may be scary, but facing your debts head on is the most helpful thing you can do to start relieving stress. Organize your bills by closest due date and tackle them one at a time so you don’t get overwhelmed.

Make a budget and stick to it.

It may not seem like it, but creating a budget gives you more freedom. A zero-based budget is one to try. First, write down your income. Then, write down your expenses. Then, subtract your expenses from your income until it equals zero. This doesn’t mean you have nothing in the bank. It means you’ve given every single dollar a purpose and a job to do. Use the free EveryDollar app from SmartDollar to make budgeting even easier.

Have monthly budget meetings.

Budgeting can be hard. But doing hard things is easier when you connect with another person in the same situation. It can be your spouse, a family member or a trusted friend who’s encouraging enough to cheer you on but bold enough to hold you accountable.

Track your expenses.

When you see where your money is going, you’re not wondering where it went. You can start taking responsibility and make changes, which, in turn, will reduce your financial stress.

Practice gratitude.

If you’re constantly comparing yourself to others, it’s easy to be caught in a trap of wanting what you don’t have and overlooking what you do. Learn what triggers these feelings — social media is a common culprit — and limit your exposure to them. Remember, contentment doesn’t come when we have enough. It comes when we see that what we have is enough.

Set goals.

When you’re stressed about money, it can be hard to set financial goals. Goals not only keep you motivated, but each successful step toward your goal can increase your confidence and reduce your stress. Start with something small but doable, such as saving 10% of your paycheck for an emergency fund.

SmartDollar has taken away a lot of confusion and helped me create a monthly budget. I feel less worried about money.

— a Costco employee

¹Pew Research Center. Americans see men as financial providers, even as women’s contributions grow.

Sources:
Ramsey Solutions. How to deal with financial stress.
American Psychological Association. Speaking of psychology: The stress of money, with Linda Gallo, PhD.
The Independent. Money problems can take a big toll on men’s mental health — signs someone needs support.

Ready to reduce your financial stress? Turn to these resources to help you change how you handle your money.

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How to handle financial stress