Golding & Associates acts on your behalf as a Licensed Insolvency Trustee to help you get your finances back on track. Contact us to find out more today! 902-365-3032 or 902-405-3832
Financial stress is no joke — when you’re struggling to get by, the worry and fear can feel all-encompassing. Golding & Associates explains that if you’re feeling paralyzed by money struggles, it’s time to take action. With small, sustained steps, you can improve your financial health and break free of old patterns.
How Does Financial Stress Affect Your Physical and Mental Health?
If you’re worried about money, you’re not alone. In 2020, an American Psychological Association study found that 64% of American adults reported that their finances caused a significant amount of stress. For people making less than $50,000 per year, that number rose to 73%.
Acute financial stress can cause your survival instincts to kick in. The constant feeling of threat can result in:
- Anxiety
- Depression
- Difficulty sleeping
CPA Canada notes that the psychological distress that comes along with financial struggle can also have physical effects, including increased inflammation. According to the Mayo Clinic, high levels of stress over an extended period of time may lead to heart disease, changes in weight, and high blood pressure.
Ways to Improve Your Finances and Reduce Stress
Financial troubles can feel overwhelming, and the best way out is often to take small steps. Choose things that feel manageable in the moment:
- Build an emergency fund. Create a special savings account, and transfer a few dollars here and there. The extra cash can help cover unexpected expenses. More importantly, it helps ease your mental stress — the financial cushion reduces panic and worry, so you can be more focused and productive.
- Refinance. When you give up some equity in your home, you can lower your monthly mortgage payments. Before opting to refinance, discuss your options with a reputable lender.
- Make a budget. Write down all your debts and expenses. Then, decide how much from each paycheck needs to go to each category. This process helps you stay on top of payments, avoid overspending, and prevent expensive late fees.
- Pay down debt strategically. Make a plan to reduce debt, and stick to it. You might pay down the account with the highest interest rate, or start with small debts to build confidence. Reach out to Golding & Associates for professional advice and assistance for whittling down your debt!
- Get professional support. Consider working with Licensed Insolvency Trustees (LITs), who are federally regulated professionals specializing in helping people and businesses with financial questions and concerns.
Self-Care Techniques to Ease Financial Stress
While you’re working toward better financial health, don’t forget about self-care. Stress-relieving activities are essential; they help clear your head and calm your nerves.
Self-care looks different for everyone — the trick is to find free and low-cost activities that bring you joy and peace. Some options include:
- Exercise. Hard workouts release pent-up stress.
- Creating a stress-free home. It’s where you live and possibly work, meaning it’s where you spend most of your time, so take steps to reduce stress with steps like decluttering, doing a deep clean, and incorporating a few houseplants.
- Spend time with friends. Laugh, talk, and forget about your worries.
- Meditate. Calming your mind can reduce stress and worry.
- Volunteer. Helping others can improve your mental health.
Building Long-Term Financial Health
Financial problems can take a toll on your mental health. By finding ways to reduce debt and manage stress – such as building an emergency fund, making a budget and sticking to it, creating a stress-free home environment, and exercising – you can set yourself up for long-term success.
Article courtesy of Brittany Fisher @ Financiallywell.info