If you’ve ever felt a pit in your stomach when checking your bank balance or lost sleep over money-related worries, you’re not alone. Many people experience financial stress—and it can take a serious toll on a person’s emotional well-being over time.
The good news is that financial stress is manageable, and you can take steps to regain control. Taking the time to learn how financial anxiety affects your mental health and proactively implementing coping strategies can help you break free from the cycle of worry and fear.
The Link Between Financial Stress and Your Mental Health
Research has shown that financial problems are one of the leading causes of stress. A study by the American Psychological Association (APA) found that 72% of Americans feel stressed about money at some point in their lives. Financial stress can lead to:
- Chronic anxiety. Constant worry about paying bills or covering expenses can create an ongoing state of anxiety.
- Depression. Financial struggles can make people feel hopeless when they see no clear way out.
- Sleep issues. Money-related worries can keep you up at night, leading to insomnia or restless sleep, which worsens your mental health.
- Relationship strain. Financial stress often leads to conflicts in relationships with spouses, family members, or friends.
- Physical symptoms. Stress caused by money problems can lead to headaches, muscle tension, and even high blood pressure.
Financial stress and mental health issues can create a vicious cycle that leaves you feeling unsure of your next move. When you’re anxious or depressed, it becomes harder to focus, make rational financial decisions, or take action to improve your situation. For example, someone experiencing financial anxiety may avoid opening bills or checking their bank account—which leads to missed payments, higher fees, and a worsening financial situation.
Managing Your Financial Stress
If you’re feeling stressed about your finances, here are some tips to help you take control while supporting your overall well-being.
1. Assess Your Situation
Fear thrives in uncertainty. Taking an honest look at your finances—even if it’s scary—can help you regain a sense of control over your future. Start by:
- Listing all your sources of income
- Writing down all your expenses
- Identifying debts, interest rates, and due dates
2. Create a Budget
A budget helps you manage money effectively. The 50/30/20 rule is often recommended as a good place to start.
- 50% of your income goes to necessities (rent, utilities, food, etc.)
- 30% goes to discretionary spending (entertainment, dining out, pursuing hobbies, etc.)
- 20% goes to savings and debt repayment
If you’re struggling with debt, however, you might want to consider temporarily adjusting these percentages to focus more on paying off what you owe.
3. Tackle Your Debt
Debt, whether in the form of student loans, credit card bills, or high car payments, is one of the biggest sources of financial stress. There are two common strategies to tackle it:
- The Snowball Method. Pay off the smallest debts first to gain momentum and motivation.
- The Avalanche Method. Pay off the highest-interest debts first to minimize the overall amount paid.
Whichever method you choose, making a structured plan to pay off debt can reduce stress by giving you a sense of control. Watching balances shrink will boost your confidence and inspire you to make other financial changes.
4. Build an Emergency Fund
Having an emergency fund—even if it’s just $500—can make a huge difference in reducing your financial anxiety. Start small, then aim to save a little each month. As your emergency fund grows, this cushion can provide peace of mind in case of unexpected expenses.
5. Look for Ways to Cut Unnecessary Expenses Without Depriving Yourself
Small changes to your spending habits can free up money without leaving you feeling like you’re sacrificing everything. Try:
- Cooking at home instead of ordering takeout
- Canceling unused streaming subscriptions
- Working out at home instead of going to the gym
- Hosting game nights with friends instead of going to socialize
- Carpooling or using public transportation whenever possible
- Shopping smarter by using discounts and cashback apps
6. See if You Qualify for Social Assistance Programs
Social assistance programs exist to support people in times of need. There is absolutely no shame in using them if you qualify. Financial hardship can happen to anyone due to job loss, medical expenses, or unexpected life changes.
Some government and nonprofit assistance programs include:
- Food assistance. Programs like the Supplemental Nutrition Assistance Program (SNAP) or local food banks can help you afford groceries.
- Housing assistance. Rental assistance programs, Section 8 housing, and emergency housing support can prevent homelessness.
- Utility assistance. Programs like the Low Income Home Energy Assistance Program (LIHEAP) can help with electricity, gas, and water bills.
- Debt relief and credit counseling. Nonprofit credit counseling agencies can help you create a plan to manage debt and negotiate with creditors.
If you’re struggling, these resources may be able to help you work toward long-term stability.
Taking Care of Your Mental Health
Your mental well-being matters just as much as your financial situation. Taking care of your mental health can help you make better financial decisions by reducing stress and improving your ability to focus.
At Eagle View Behavioral Health in Bettendorf, Iowa, we offer support for those struggling with a wide range of mental health concerns. We understand that cost is often a concern for people seeking treatment, which is why we provide flexible payment plans and financial assistance. If you’re unsure about your insurance coverage, our team can help you determine what benefits are available to you—ensuring that finances are never a barrier to getting the care you need.
Contact us today for a free, confidential assessment, and take the first step toward feeling better. Your mental health is just as important as your financial well-being, and support is always within reach.
