Money on Your Mind?Understanding the Connection Between Financial Stress and Emotional Wellness
When was the last time you looked at your finances? How did it feel when you did that?
What thoughts about yourself and the decisions you made with your money floated to the surface? Maybe you've found yourself staring at your banking app before bed, wondering how your paycheck disappeared so quickly. Perhaps you're earning more than you ever have before yet still feel anxious every time you make a purchase. Or maybe you've worked hard to achieve financial stability but can't seem to shake the fear that it could all disappear tomorrow.
Financial stress is one of the most common sources of anxiety for adults. From the rising cost of living, to mounting student loan debt, unexpected expenses or concerns about retirement savings and investing, money worries create a constant state of uncertainty. Over time these worries can significantly affect your mood, sleep and your ability to concentrate.
Financial stress can also contribute to the development of physical health problems such as cardiovascular disease and high blood pressure. This is due to the chronic activation of the body’s stress response system, leading to elevated cortisol, inflammation, and activation of the sympathetic nervous system, more commonly known as our “Fight or Flight” system. This can present as headaches, muscle tension or digestive issues, but it can also present as mental health struggles. This consistent nervous system activation may explain why you feel overwhelmed, irritable, and emotionally exhausted. Depression, Anxiety, Trauma, ADHD, and other mental health concerns can influence how we understand and manage our money. You may find it difficult to keep up with bills, maintain employment, or engage in long-term planning to reach your financial goals. This can lead to avoidance of financial responsibilities, or emotional distress which may contribute to impulsive spending as a temporary form of relief.
Your relationship with money often begins long before you open your first bank account. Family experiences, cultural messages, and childhood observations all contribute to what is sometimes referred to as our "money story." Maybe you grew up hearing that money is scarce and must be tightly controlled, which in adulthood can look like a fear of taking financial risks through investing, or staying in a job longer than you would like because of the security of the steady paycheck. Or maybe you learned that spending money is a sign of success or security, which can lead to living above your means or overspending to look “successful”. These early lessons can continue to influence financial decisions well into adulthood, often without our conscious awareness.
The good news is that improving financial wellness does not always begin with increasing income. It begins with increasing your awareness. Understanding your emotional relationship with money can help you identify patterns that may be contributing to stress. Asking yourself "What messages did I learn about finances growing up?" can provide valuable insights into your own spending.
Developing healthy coping strategies is equally important. Creating a realistic budget, that is grounded in your personal values, future goals and how you personally spend your money. Setting achievable financial goals, practicing stress management techniques, and seeking support can all improve both financial and emotional well-being.
When money problems arise, often we focus on the numbers alone: income vs debt, savings versus expenses… but rarely do we focus on what’s really behind the numbers. The truth is every financial decision that we make is rarely just about money. Our decisions are often based on past experiences, present emotions, mistaken beliefs and behavioral patterns we fail to acknowledge.
Just as we would not expect someone to manage a medical condition without support, we should not expect to navigate significant financial stress alone. For individuals struggling with financial-related stress, online therapy can be a valuable resource. Through online counseling, you can explore the emotional aspects of money, develop healthier coping skills, and address patterns that may be contributing to financial distress. Online Counseling can help you to regain motivation, improve decision-making, and build the confidence needed to tackle financial challenges and create a plan to reach your financial goals.
Ultimately, financial wellness and mental wellness are not separate goals. They are interconnected aspects of overall health. When we take time to understand our money story, we also strengthen our emotional well-being, physical health, and overall quality of life. A financially peaceful life is possible, contact us to get started!