Money is one of the most common sources of stress in people’s lives. It’s often identified as the number one stressor for people worldwide and the 2nd most common cause of marriage breakups.
Money is stressful because it’s often used to measure success, which can lead to feelings of inadequacy or failure. It’s also a common cause of conflict in relationships, and it can be a major source of anxiety if you’re struggling to make ends meet or cope with debt.
In this article, we’ll explore some of the reasons why money is so stressful and offer some tips on how to deal with financial stress
Why is money so stressful?
There are a number of reasons why money is so stressful.
Your self-worth is connected with money
Money is often used as a way to measure success, which can lead to feelings of inadequacy or failure if you feel like you’re falling short. This can be especially difficult if you grew up in a family where money was tight, as it can reinforce the belief that you’re not good enough or that you’ll never be able to achieve your goals.
Insecurity about now and the future
Money is also a common cause of conflict in relationships. If one partner is earning significantly more than the other, it can create feelings of insecurity and jealousy. This can also be an issue if one partner is a stay-at-home parent or student and isn’t bringing in an income.
Success with money
Money can be a major source of stress if you’re constantly chasing after it. This can be the case for people who are always trying to keep up with the Joneses or those who feel like they need to earn a certain amount of money to be happy.
Regrets over money
If you regret how you’ve handled your finances in the past, this can also lead to stress. This might include regretting a major purchase, not saving enough for retirement, or accumulating a lot of debt and being unable to cope.
Mistakes with money
Everyone makes mistakes with their finances at some point, but for some people, these mistakes can lead to years of stress and financial hardship. This might include making a risky investment, being scammed out of money, or losing your job and not having enough savings to cover your expenses.
Comparison with others
Comparing your financial situation to others can also be stressful. This might include comparing your salary to your friends or co-workers, feeling like you can’t keep up with the Joneses, or feeling like you’re not doing as well as you should be.
It’s all so confusing
Money can be confusing with all the choices and decisions that need to be made with it. This can include everything from choosing the right insurance, retirement planning and how to start investing in the stock market vs property vs starting a business and on and on.
How to deal with financial stress
Dealing with your financial situation and money stress can be challenging, but here are a few things you can help manage stress and manage money.
Identify your triggers
The first step to managing your financial stress is to identify what’s causing it. This might include looking at your self-worth, relationship, success or comparison triggers. Once you know what’s causing your stress, you can start to deal with it.
Set some clear life and financial goals
One way to deal with financial stress is to set some clear goals. This might include creating a budget, saving for retirement, or paying off your credit card debt. It can also help you make a list of your financial priorities and determine what’s most important.
When you have specific goals, set a budget or spending plan to help you work towards them. This will give you a roadmap to follow and help you stay on track.
Set a spending plan
One of the best ways to deal with financial stress is to set a budget and stick to it. This will help you keep track of your spending and make sure that you’re not overspending. It can also help set up a savings plan to prepare you for unexpected expenses.
Having control over spending money will set you up to overcome your financial struggles and move you into a more comfortable financial life now and in the future.
Take inventory of your finances
Another way to deal with financial stress is to get organized. This means keeping track of your bills, income, and expenses. This can be done using a spreadsheet or software like Mint or Quicken. Having everything in one place will help you stay on top of your finances and make it easier to budget.
Explore ways to deal with debt
If you’re struggling with debt, there are a number of ways to deal with it. This might include negotiating with your creditors, consolidating your debts, or making a budget to help you get out of debt.
You could use the debt snowball or the debt avalanche method
The debt snowball method is where you pay off your debts from smallest to largest. This can help you get out of debt faster because it gives you quick wins and builds motivation.
The debt avalanche method is where you pay off your debts from the highest interest rate to the lowest. This can save you money in the long run because you’ll pay less in interest.
Using either of these methods to pay off your debt is a sure-fire way to improve your financial health and your mental health.
Detox and declutter your finances
One way to help manage your financial stress is to detox and declutter your finances. This means getting rid of any unnecessary expenses, unloading debt, and creating a budget.
Look at your spending and see where you can cut back or reduce it. This might include cancelling cable, eating out less, or not buying expensive clothes.
Clearing out your finances can greatly help with your mental and physical health as you remove all the things causing financial worries in your bank account and general well-being.
Taking control of your finances and your monthly expenses will be a step in the right direction in improving your financial stability and relieving stress.
Be smart with spending
One way to reduce the amount of stress that money can cause is to be smart with spending. This means being aware of your spending patterns and only buying what you need.
This is a key part of figuring out what really makes you happy and what doesn’t. For example, you might find that you’re happier when you spend money on experiences rather than things
One of the best ways to reduce financial stress is to start saving. This can be done by setting up a budget and sticking to it, setting up a savings plan, or investing in a retirement account.
Saving money will help you to be prepared for unexpected expenses and give you peace of mind knowing that you have a cushion in case something goes wrong.
Talk to someone
If you’re struggling to deal with your financial stress, it’s important to talk to someone. This might be a friend, family member, financial advisor, or therapist. Talking to someone can help you understand your stress and figure out how to deal with it.
Create additional income
One way to reduce financial stress is to create additional income. This might include getting a second job, starting a side hustle, or renting out a room in your house.
Creating additional income can help you get out of debt faster, save money, and have more peace of mind regarding your finances.
Set up an emergency fund
One of the best ways to reduce financial stress is to set up an emergency fund. This is a savings account that you can use in case of unexpected expenses.
The best way to set up an emergency fund is to start saving money little by little. This might mean setting aside £$50 or £$100 each month. Having an emergency fund will help you be prepared for anything that comes up and reduce the stress you feel when it comes to your finances.
Final thoughts: why is money so stressful?
A lot of people feel like they can’t control their money which leads to a lot of money stress and anxiety. But that doesn’t have to be the case. You can regain control of your money and start feeling better by learning about personal finance and managing your money.
Once you learn how to manage your money, you’ll be able to afford everything you’ve wanted in life – a nicer home, a new car, vacations, etc. Money doesn’t have to be stressful – it can actually be really fun when you know what you’re doing!
Sign up for our free newsletter on personal finance today and start learning how to take back control of your life!
FAQ Why is money so stressful?
Why do I get stressed about money?
There are a few reasons why you get stressed about money. One reason is that money can be a source of anxiety because people often feel like they can’t control it. Another reason is that money can cause a lot of stress when people are trying to manage their finances and debt. And finally, money stress can also be caused by the fear of not having enough money or losing what you have.
How can I reduce my financial stress?
There are a few ways to reduce your financial stress. One way is to be smart with spending and only buy what you need. Another way is to start saving money so that you have a cushion in case something goes wrong. You can also talk to someone about your financial stress, like a friend, family member, financial coach, or planner. And finally, you can try to create additional income to help reduce your financial stress.
What is the best way to deal with money stress?
The best way to deal with money stress is to be proactive. This means being smart with your spending, saving money, and creating additional income. You can also try to talk to someone about your financial stress so that you can understand it better and figure out ways to deal with it. Lastly, you should set up an emergency fund in case of unexpected expenses.
How do I stop being stressed about money?
You can do a few things to help stop stressing about money. First, make a budget and stick to it. Second, try to save money wherever you can. Finally, don’t dwell on the past – focus on your future and what you can do to improve your finances.
Is money a stressful part of life?
For many people, money is a stressful part of life. This is because they don’t have enough or worry about how they will pay their bills. Money can also be a source of stress when there is too much debt.
But it doesn’t have to be that way, with a bit of planning and discipline you can enjoy your money whilst also growing it for a brighter financial future.
What causes anxiety about money?
There are many reasons why people feel anxious about money. One reason is that they may not have enough saved for emergencies or retirement. They may also worry about how they will pay their bills if they lose their job. And if someone has a lot of debt, that can also be a source of stress.
Why do I feel financially insecure?
There are many reasons why people feel financially insecure. One reason may be that they have never learned how to manage money properly. They may also have a lot of debt, which makes them feel anxious about the future. It can be stressful when you don’t know if you will be able to pay your bills each month.