What would your life be like if you didn’t stress about money?

Alicia Nelson Bell, Finance Intern
2021 USU Graduate

A 2020 report from Thriving Wallet states that around 90% of Americans reported experiencing money related stress in 2019 and 2020, which makes it the top contributor to stress in America. It may seem like a no brainer, but this money related stress that so many Americans are experiencing is having an impact on pretty much every aspect of our lives. This includes mental, emotional, and physical health as well as our relationships with our friends and family. It boils down to this: the more stressed we are about finances, the less likely we are to make smart money choices.

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Effects of Money Stress on Our lives
So, how bad is money stress on our health? “It’s bad enough that financial stress skews individuals’ outlooks on finances and impairs their decision making, but its ability to negatively impact immune systems and overall physical health is worse (Best Money Moves, 2020).”
To do something about the stress you may be experiencing around money, it is important to first become aware of how it is affecting your life, since there are many ways it can affect people.

Some effects may include:

• Overeating, especially unhealthy foods
• Developing unhealthy addictions such as alcohol or drug abuse and even gambling
• Spending recklessly to cope with the stress
• Having a lower self-esteem because of your financial situation in comparison to others
• Getting a lower amount and quality of sleep- almost 35% of Americans lose sleep due to financial stress[1].
• Social Isolation due to lack of funds to go to social events or lacking self-esteem[2].
• Negative effects on marriages and other relationships
• Weakened immune system
• Depression and Anxiety: Mental health and money problems go hand in hand and can create a vicious cycle that is hard for people to get out of. Anxiety and depression make it hard for many people to go to work so that they can make a living, or it makes it really hard for them to function while they are at work. This lack of work leads to more financial stress and anxiety (Bloch, 2017).

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Healthy Ways to Cope with Money Stress:

• Come up with a financial plan. This has been reported to be one of the best ways to cope with the stress, yet only 1/3 of Americans have a financial plan in writing. Something that may help you do this is creating a vision board that includes your individual and family goals. Use these goals to make a financial plan to achieve them.
• Focus on what you can change and have control over, rather than the things that are out of your control. Check out this financial calendar at www.finance.usu.edu/efw for monthly steps you can take that will help you become more educated about your financial situation and help take control over your finances.
• Take inventory of your financial situation, so you can see where you actually are and be able to take control of your situation. Sometimes it isn’t as bad as you think it is, which can relieve stress.
• Be grateful for what you do have rather than focusing on what others have that you don’t. Stop comparing yourself with others, especially on social media.
• Focus on the things you have that money cannot buy, such as relationships with your friends or family.
• Set limits on how much time you spend catching up on the news and social media, so that the negative things that the media is focusing on does not bring you down and add to your stress[3].
• Financially educate yourself. Not being educated about money is where a lot of the stress comes from. Financial literacy can be relaxing and decrease stress. At least start by educating yourself on financial basics. You can also join us for monthly personal finance webinars about different topics to help educate you about your finances and help you decrease the stress you feel around finances!! www.finance.usu.edu/efw  Anything in life that is unknown can be stressful. Knowledge applied is power, so it is important to act upon the financial knowledge you gain or already have.
• Choose to be at peace with your finances, even if you still have things you need to figure out and improve with finances. Peace doesn’t come from having lots of money. Peace comes when you choose for it to come[4].

Decreasing the stress and anxiety you have surrounding finances is possible, and like everything else with finances, is a very personal thing. Decreasing financial stress starts with being aware that it is influencing your life and then making the choice to make a change in your life. Ultimately, the relationship you have with money is up to you, whether you have a positive or a negative relationship with it and if you are going to have a relationship with finances where you are in control of it and you use it as a tool or if you are going to be a slave to it and let it control you. Coping with financial stress can improve your overall health and well-being and help you live a more peaceful and happy life.
 

References: 
[1] Stevens, Liz. Financial Stress, Health and Employee Wellness in 2020, Best Money Moves February 25,2020.
[2] Bloch, Douglas Depression, Anxiety and Money Problems, YouTube, May 30,2017
[3] Yahoo Finance, How to Deal with Financial Stress, YouTube, May 1,2020
[4] Krohn, Kris, How to Eliminate Financial Stress, YouTube, Aug 21,2018.