In today’s environment, financial stress is a fact of life for many people. The pandemic only exacerbated this issue as it magnified the massive inequities within the United States.
Financial stress can not only eat away at your quality of life, but it can lead to health issues as well.
According to one survey by Morgan Stanley, 78 percent of the respondents reported feelings of financial stress.
Financial stress is not just an issue in the face of a pandemic. It is a problem that exists in all parts of our economy, including the corporate world.
If you are suffering from financial stress, there are ways you can begin to restore your financial health again. If a major life event has thrown your finances out of whack, you may not be able to solve the problem overnight. But by taking some simple steps, you can start to put a plan in place that will get you back on track.
Financial stress is partly a behavioral response to economic circumstances and partly a biological response to emotional triggers. Depending on your unique circumstances, you may use money in different ways to fight off stress that may also be creating more significant negative consequences for your health, relationships and career.
Some research is linking financial stress to mental health. A 2014 study from Yale University explores the idea that some “mental health problems” are actually money problems.
Financially stressed people are more likely to make bad money decisions, including overspending or underspending.
What can you do to improve your financial wellness?
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Reduce or eliminate your credit card debt.
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Negotiate your credit card debt.
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Practice money mindfulness – most people don’t realize they are making unconscious financial decisions until it’s too late. By taking three deep breaths before making any financial decision, you will be able to make more conscious decisions about how you spend your money and feel less anxiety about your future finances.
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Improve your financial literacy, learn how to save and invest.