Does the thought of money (or the lack thereof) give you the blues? Well, you wouldn’t be alone, a new study has found. The lion’s share (90%) of Americans says their finances impact their stress levels. And for most, not in a good way.
That’s according to Thriving Wallet, which surveyed more than 3,000 US adults from all over the country. Their other findings paint a stark picture of the nation’s financial and mental health.
Let’s look at the findings below:
Being Overwhelmed by Financial Difficulties
Roughly three-quarters (65%) of respondents said their financial difficulties are piling up to such a degree they can’t overcome them.
Feeling overwhelmed by bills and other obligations can happen to anyone — whether you’re making minimum wage or six figures. All it takes is one too many surprises.
Let’s say you have to take your car in for new tires one day. That very same day, your cat swallows a ribbon and needs surgery to save her life. To top it all off, your furnace stops working at the same time you need to replace your water heater.
If it had been just one of these expenses, you may have been able to pay for it with savings. But these emergencies add up.
This can put you in a tricky position, but there are ways around it with a line of credit or online loan. You can find more information about these options by visiting MoneyKey. The online loan experts at MoneyKey make it easy to understand how these financial products fit into your life.
Feeling Like They Can’t Control Their Finances
Roughly half of those surveyed by Thriving Wallet say they feel like important financial aspects of their lives are out of their control.
It’s no wonder why. The last two years have been especially challenging as you adapted to the pandemic only to get saddled with record-high inflation and interest rates.
These global economic factors are totally out of your hands, yet they impact your everyday finances profoundly. Inflation has raised the price of every expense, from groceries to utilities and clothes.
Meanwhile, the latest interest rate hike — which the Federal Reserve performed to cool off inflation — means some personal loans cost more than they did pre-pandemic.
Managing Money Limits Enjoyment of Day-to-Day Living
Mounting financial difficulties can come to a head, impacting your mood every day. Some 40% of Americans say that managing their finances on a daily basis interferes with their ability to enjoy their day-to-day life.
It’s hard to live life to the fullest when you’re constantly opting out of experiences and splurges that cost money. Being financially responsible can be a depressing task, but you have to do it in order to pay the bills.
What Can Financial Stress Do to a Person?
Financial stress impacts your life, beyond causing anxiety about the future. When you’re under constant stress, it can have serious effects on your physical, mental, and financial well-being.
Stress is the body’s fight-or-flight reaction to a perceived dangerous situation. During this stress response, you might notice how your muscles tense and blood pressure rises. Long-term stress, however, often comes with a slew of other symptoms.
Anxious people often get headaches, have stomach problems, and deal with insomnia. Stress can even contribute to a variety of health problems:
- Dementia
- Diabetes
- Heart disease
- High blood pressure
- Obesity
- Stroke
Chronic anxiety often goes hand-in-hand with depression. When you’re depressed, being proactive about your health or financial situation is almost impossible.
Depression can also rob you of any money management skills you might have. You may become avoidant about negative things, like paying bills, checking your credit, or repaying loans online.
Studies have also shown depressed people tend to overspend to try and cheer themselves up. Retail therapy can only make a bad thing worse if you can’t afford to pay bills, credit cards, or lines of credit.
How to Kick Your Financial Stress to the Curb?
Chronic stress is bad for you, that much is obvious. So, what can you do to get a handle on your emotions and get back in the driver’s seat of your finances? Keep reading to find out:
- Talk to a professional or trusted loved one to put your worries into words and gain perspective. They may even share coping mechanisms that can help you quiet your racing thoughts.
- Commit to mindful practices every day — small decisions and hobbies can help you lower your stress levels.
- Create a budget to structure your spending, making sure you focus on your short- and long-term goals. A well-balanced budget should include paying off online loans and building emergency savings.
- Upgrade your skills online or through volunteering to change careers or earn a promotion.
The Takeaway:
A little bit of stress is normal every once in a while, but chronic anxiety should not be. Unfortunately, many people are constantly worried about their finances.
If you’re feeling overwhelmed, ask for help, learn practical stress-beating techniques, and use a budget to gain control of your finances.
