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financial and mental wellness

We live in a world where our lives are inextricably intertwined between our financial responsibility to ourselves and our mental health, and financial insecurity has become an unsettling reality for many employees.

Anxiety related to money can profoundly affect our quality of life and mental health. It can manifest itself in a variety of ways, from insomnia and nervousness to muscle tension and more serious health problems.

Financial stress comes from a variety of sources, such as overwhelming debt, lack of employment or job insecurity, unexpected expenses, and the feeling that money controls our lives instead of us controlling them.

Understanding the complexity of this connection is the first step towards a more balanced life, but with practical strategies it is possible to face expenses and build a solid financial future without compromising our inner peace.

Ways To Deal with Financial Stress

Dealing with financial problems requires a plan to relieve stress. Handling issues like paying bills, saving, and reducing debt has direct monetary benefits, improving your overall outlook. Here are some simple suggestions to tackle money stress and gain control of your finances.

  • Identify the main sources of financial stress: If financial stress weighs on you, pinpoint the issues causing concern—be it credit card debt or monthly bills. Identifying these stressors guides your next steps:
    • Write down your biggest money challenges.
    • Keep the list short to help you feel less overwhelmed.
    • Review your list every three to six months as your circumstances change.
  • Make a monthly budget: A budget empowers you to grasp your finances, preventing overspending and aiding savings for future goals. When you know where your money goes, shift some to ease financial stress.
    • Start with your total income, which is the amount of money you take home every month after taxes.
    • Make a list of all your expenses: from rent or mortgage, to your daily cup of coffee.
    • Set up automatic payments for recurring bills and savings.
    • Sign up to receive alerts if your balance is below a certain level.
  • Make the most of your income: When money is tight, make the most of what you have. Small steps matter. You might not cut $500 from one expense, but finding five where you can cut $100 each adds up.
    • Sort your spending into needs and wants, and then look for ways to narrow down your wish list.
    • Review your spending pattern to identify ways to save on small everyday expenses.
    • Consider modifying your budget to prioritize goals that will help reduce financial stress, such as paying off high-interest rate credit cards.
  • Start an emergency fund: Save for emergencies like car repairs or job loss to ease financial stress. Starting an emergency fund might seem daunting, but don’t fixate on the amount. Consistently putting money aside matters more than reaching a specific goal.
    • Check your budget to see how much you can save each month after covering your essential expenses.
    • Prioritize having enough money to cover daily expenses for three to six months before starting long-term savings goals.
    • Set up automatic transfers from your checking account to your savings account.
  • Establish a strategy to reduce debt: Credit card debt causes financial stress. It’s costly and hinders savings. To ease anxiety, make a debt payoff plan. If you have multiple card balances, use the snowball method (pay off the lowest balance first) or the high-rate method (start with the highest interest card).
    • Make the minimum payment on each of your cards.
    • Choose a payment strategy and stick to it.
    • Avoid taking on new credit card debt.
  • Consider asking for help: If you’re not making enough progress in cutting your debt, get help from trusted sources like the Federal Trade Commission (FTC) or the National Foundation for Credit Counseling (NFCC). For long-term goals like saving for retirement or college, consider financial advisors. Friends and family can also assist, but set boundaries to preserve relationships.
    • Track your progress.
    • Make adjustments as your income, expenses, and goals change.
    • Seek help if you are having trouble making the minimum payments.

Conclusion

Addressing financial stress through actions like identifying stressors, budgeting, and managing debt empowers you to take control of your financial situation. Small, consistent efforts in saving and wise budgeting can lead to significant improvements over time. Prioritizing your financial well-being isn’t just about the numbers; it’s about securing peace of mind and laying the foundation for a more stable future. Embrace the journey to financial wellness as a catalyst for positive change in both your finances and overall mental health.

Resources

  1. APA.org: The American Psychological Association (APA) provides its website visitors with a wide range of information and resources related to psychology, including research, publications, educational materials, and information about the organization itself.
  2. Child Mind Institute: Child Mind Institute’s website, provides information about their healthcare services, facilities, medical professionals, patient resources, and more.
  3. NIMH: On the National Institute of Mental Health (NIMH) website, you can find a wealth of information related to mental health, research findings, treatment options, and resources for individuals, families, and healthcare professionals.

Helpful Links

If you or someone you know needs to talk to a professional, contact us now to schedule your initial virtual session. You can call us at 888-409-8976 or click HERE to schedule it online.

Take care and be open to the possibility of a brighter, more grateful tomorrow.

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