Peter J
In today’s fast-paced world, people are increasingly consumed with life’s daily hustle and bustle. With the rising cost of living and the increasing demands of modern life, financial stress has become a major concern for many people. The impact of financial stress on mental health cannot be overstated.
Talking about the mental toll taken by money pressures, Linda Gallo, PhD, an associate professor of psychology, an adjunct associate professor in the Graduate School of Public Health and a co-director of the Institute for Behavioral and Community Health Studies, points out:
“Well, humans are actually equipped to deal with stress and stress can be beneficial, at least initially, because it allows us to avoid danger and face challenges. But, stress becomes unhealthy when it is unrelenting and people do not experience opportunities to recover. So, in these cases stress can lead to physical problems, things like headaches and stomach aches and also mental health issues, such as anxiety, trouble sleeping.”
The Cycle of Financial Stress and Mental Health
Financial stress and mental health are closely related. Financial stress can cause anxiety, depression, and other mental health issues. Financial stress can also create a vicious cycle that is difficult to break. When stressed about finances, people may turn to unhealthy coping mechanisms such as overspending, gambling, or substance abuse. These behaviors can cause financial problems to worsen and lead to more stress.
The Psychological Reasons Behind Overspending
Overspending is one of the most common unhealthy coping mechanisms people use to deal with financial stress. Overspending can create a temporary feeling of relief from stress, but it can also lead to more financial problems and stress in the long run. There are several psychological reasons why people overspend. For example, some may use shopping to escape negative emotions or boost their self-esteem.
Not having enough money can also harm mental health. When people struggle to make ends meet, they may experience feelings of shame, guilt, and embarrassment. These feelings can lead to anxiety, depression, and other mental health issues. Furthermore, not having enough money can also limit access to basic needs such as healthcare, healthy food, and safe housing. This can lead to physical health problems which can, in turn, impact mental health.
Symptoms of Financial Stress
Financial stress can manifest itself in several different ways. Some common symptoms of financial stress include:
- Constant worry about money
- Difficulty sleeping
- Irritability
- Feelings of hopelessness.
Physical symptoms such as headaches, stomach problems, and muscle tension may also be present. It is important to recognize these symptoms and seek help if they persist.
Coping Strategies for Dealing with Financial Stress
Dealing with financial stress can be challenging, but some coping strategies can help. One of the most important things is to create a budget and stick to it. This can help to reduce financial stress and create a sense of control. It is also important to seek support from friends and family members. Talking about financial stress can help to reduce feelings of shame and isolation. Also, seeking professional help from a therapist or financial advisor can be beneficial.
Other ways of dealing with financial stress include:
- Control discretionary spending: While you may not be able to control what you spend each month on rent or your mortgage, you can find savings in what you pay for things like entertainment and food. Perhaps compare prices between brands in the grocery store, or go for the no-name brand.
- Get a side hustle: If you are worried about money, perhaps you can earn more by working overtime, changing jobs, or doing a side hustle, such as Ubering or becoming an online tutor.
- Consult a credit counsellor: If you are drowning in debt, it’s a good idea to consult a credit counsellor or financial advisor to see your options to climb out of the hole. They might, for example, suggest you consolidate your different debts into a single loan, with considerably fewer month-to-month carrying costs than you are paying now.
Take Charge of Your Financial and Mental Well-Being
Financial stress can significantly impact mental health, but taking steps to reduce stress and improve well-being is possible. Recognizing the signs of financial stress, seeking support, and developing healthy coping strategies can break the cycle of financial stress and improve mental health. Remember, it’s never too late to take control of your financial and mental well-being.
