What we'll cover
Checking in with your financial health
Boosting your financial wellness
Creating a budget plan for the future
It's no secret that money is a major source of stress for many people. In fact, the latest Stress in America survey from the American Psychological Association found 65% of Americans cite money as a stressor — the highest rate in nearly a decade.
Plenty of outside forces affect our financial lives, not to mention the personal pressures we may put on ourselves. In a survey by Forbes Advisor, 28% of responders shared that carrying debt triggers impulsive spending. While that habit might provide some temporary relief, delaying difficult financial situations can snowball and eventually create more stress.
You know stress isn’t good for your health, and anxiety around money can be detrimental to your financial, personal and emotional life. If you’re experiencing money stress, try acting on the three C’s: Confront the stress, conquer your negative beliefs and create a future plan.
Read more: Use these visualization tips to take control of your savings.
Confront what is giving you money stress
Whether you grew up in a home where finances were taboo or you were taught budgeting from an early age, we all have our own money stories. Whatever your background, it serves as the foundation for your relationship with money today. That likely includes any financial stressors you may have.
Some people feel the easiest way to deal with these emotions is to simply avoid them. But denial can lead to increased anxiety and loss of control over your financial health in the long run. By identifying the root cause of those stressors, you can start to find solutions.
Whatever your background, your money story serves as the foundation for your relationship today.
If unexpected expenses are keeping you up at night, you might start building your emergency fund. Want to feel more secure about your family’s financial future? It may be time to start investing. Even taking one small step can help ease some of the stress and motivate you to keep going.
Conquer negative money beliefs
When your financial health isn’t where you’d like it to be, it can start to creep into other parts of your life. You might find yourself worried about being able to retire on your timeline or feel anxiety about going out to dinner with friends due to cost. But how do you quiet these concerns?
One of the best steps you can take toward boosting your financial health and your overall monetary, mental and physical wellness is to grow your financial knowledge. It can be tough — not to mention overwhelming — to budget, improve your credit or make financial decisions when you don’t fully understand why or how to do so.
As you improve your financial health, you’ll be able to create a game plan for your goals, whether it’s saving for emergencies or building your credit score.
Create a plan for finances moving forward
If you’re unhappy with your financial standing, are recovering from or in the midst of financial hardship or just want to reduce the money-induced stress in your life, start by taking small, albeit meaningful, steps to improve your financial health.
By incorporating behaviors like monitoring your financial status and creating a conscious spending plan based on your values, you can start to chip away at your stress and move toward your goals — while also increasing your mental, physical and overall well-being.
Don’t underestimate the value of emotional support for your money challenges. Family, friends, a partner and/or a professional can be the support system to help you manage difficult financial circumstances. For some, working with a financial advisor or counselor could be a necessary step. For others, simply talking through a sticky situation with a close friend or family member could be enough to ease your worries.
Strengthen your financial health
Your financial health takes into account several factors of your personal finance situation (like your net worth, credit score, debt, savings, retirement fund, etc.) to provide a holistic look at how prepared you are to meet different financial needs. When you keep tabs of these factors of financial health, you can feel more in control of your finances and more capable of managing your money stress.
