3 Tips to navigate Financial Stress

Guest Contributor: Tasha Killian
USU Extension Assistant Professor, Juan County

2020 has been a stressful year. From pandemics to natural disasters, and seemingly everything in between, we have faced a level of uncertainty many of us have never seen before. This uncertainty has led to stress and worry in all aspects of life, including finances. If you fall into this category of finding your financial life more stressful in this crazy year, know that first you are not alone. According to a study performed by a group of researchers in Canada, parents have reported a higher level of stress with 22% of mothers saying their financial stress has increased regarding the next 6 months of their future (Carroll, et al., 2020). With all this stress happening, it can almost seem like a gloom and doom case scenario. However, there are things you can do to help manage this stress, especially when it comes to your finances. 

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If you have been feeling stressed out by your finances, there are some things you can do! I have compiled a list from various trusted resources with their tips on ways to manage your financial stress, during this time.  

1. The American Psychological Association (2017) recommends recognizing how you deal with stress related to money. For example, if you are more likely to overeat or have more relationship conflicts when you are feeling more stressed out, find a way to re-direct those stresses so they don’t add more to you. For example, learn a new hobby, move your body, or talk to a trusted friend or therapist. 
2. The Bank of America (2020) offers the tip of identifying what needs attention the most. If you have ever heard of triage philosophy, this can be applied to your finances. For example, if your stress is caused by high levels of debt, it may be important to work on paying that down first. By focusing on the mains sources of your anxiety and stress, you can reduce your overall level of anxiety. 
3. And our final tip comes from Dave Ramsey. This tip is to practice gratitude.  Practicing gratitude will help you fight the urge to buy new things, spend more money and want what someone else has. Dave Ramsey suggests working to find what triggers your want for something new and figure out how to work through that (Cruze, 2020). For me personally, this happens when I scroll Instagram. There seems to always be something new and shiny tempting me to go over budget or covet what I know I cannot afford. In the words of Dave Ramsey, “keeping up with the Joneses won’t actually lead to contentment. It will only get you further into debt.” (Cruze, 2020)

This has not been an easy year. There are struggles we have never faced before plaguing us and adding extra stress into our lives, especially in the financial realm. However, there is hope. You can take control and manage your financial stress. 
 
References: 

• American Psychological Association. (2017, November 15). Dealing with financial stress. http://www.apa.org/topics/holiday-stress-money
• Better Money Habits. (2020, April 03). How to Overcome Financial Stress and Improve Finances. Retrieved October 22, 2020, from https://bettermoneyhabits.bankofamerica.com/en/debt/how-to-overcome-financial-problems
• Carroll, N., Sadowski, A., Laila, A., Hruska, V., Nixon, M., Ma, D. W. L., Haines, J., et al. (2020). The Impact of COVID-19 on Health Behavior, Stress, Financial and Food Security among Middle to High Income Canadian Families with Young Children. Nutrients, 12(8), 2352. MDPI AG. Retrieved from http://dx.doi.org/10.3390/nu12082352
• Cruze, R. (2020, October 21). How to Deal with Financial Stress. Retrieved October 22, 2020, from https://www.daveramsey.com/blog/how-to-deal-with-financial-stress