Financial Stress Will Affect Your Health

Overview

Financial difficulties are a common occurrence for most people.  If money problems are making us unhappy, it makes sense that we won't be our happiest, most positive, and most efficient selves.  And while these problems may go away as quickly as they showed up, many people who have been financially stressed have also said they had mental health problems like sadness, anxiety, and drug abuse.

Stress over money can not only cause mental health problems, but it can also worsen them if you already have them.  Mental health conditions can also make financial stress worse since they can make it more difficult to properly manage stress.

Financial stress

Harm your health

Research has indicated for many years that financial worries consistently rank among the top sources of stress in our nation. "Until it ceases to be a taboo subject, change is unlikely," states Ashley Agnew, financial wellness director and certified therapist at Centerpoint Advisors in Needham, Massachusetts.

High levels of financial concern, if left unchecked, can harm health and potentially raise the risk of developing serious conditions like hypertension and cardiovascular disease.

All of these speak to the need to develop coping methods that can help you manage financial stress and safeguard your mental and physical health.  There are several ways in which financial stress can affect one's physical and emotional health. 

Here's a closer look at several instances of financial hardship:

On a Personal Level:

• Being unable to pay for housing, food, utilities, or medical treatment is an example of a fundamental necessity.
• Feelings of embarrassment, worry, and the dread of losing assets can result from unpaid bills and credit card balances.

Financial issues:

• Living paycheck to paycheck or having problems managing money can generate tremendous stress.
• Lack of funds and financial security: The anxiety of not having enough for emergencies or retirement can be a big source of stress.
• Income or job loss: Unexpectedly losing one's work or having one's pay slashed might put a person in a precarious financial position.
• Unexpected expenses: Medical bills, car repairs, or other unplanned charges can disrupt budgets and generate financial stress.
• A lack of financial planning, excessive spending, and insufficient budgeting are all symptoms of poor financial management.

Enterprise and Sector Levels:

• Economic downturns and recessions have a devastating effect on businesses and put many of them in a precarious financial position.
• Businesses may have to lay off workers or close their doors if they experience a decline in revenue or earnings.
• High interest rates or trouble repaying debt can strain a company's finances and make debt management more challenging.
• Filing for bankruptcy may be an arduous and time-consuming ordeal for companies.

Effects on Behavior and Mental Health:

• Anxiety and depression: Financial stress can provoke or intensify anxiety and depressive symptoms.
• Sleep problems:  If you're worried about your finances, you can find it difficult to fall or stay asleep.
• When people are financially stressed, they may turn to harmful coping techniques like emotional eating or excessive spending.
• To escape the emotional and mental burden of dealing with their debt, some people choose to ignore their creditors and their calls and letters.
• When people feel ashamed or embarrassed about their financial condition, it can lead to changes in their social conduct, such as withdrawing from relationships or social activities.
• Impulsive decisions: Financial anxiety can impair people's judgment, leading them to overspend or neglect to plan ahead.

When Money Pressures Get Dangerous

The stress that most people feel about their finances is usually temporary and tied to specific events, such as moving or the holidays, according to Megan McCoy, PhD, an associate professor at Kansas State University and a licensed financial therapist in Manhattan.

According to Dr. McCoy, if your financial worries don't stem from a single incident and continue for more than three months, it could be an indication that your stress is developing into financial anxiety, which can harm your health.

Dr. McCoy has identified the following:

• Excessive ruminating about bills or obligations, panic attacks, ongoing anxiety, the urge to check bank or retirement balances, and the fear of doing so or moving in the opposite direction
• Physical manifestations such as chronic pain, nausea, or trouble sleeping as a result of financial stress
• Putting off paying bills or even opening them
• Dependence on narcotics and alcohol to deal with
• Excessive spending brought on by worry or despair
• Problems in relationships include lying about spending, hiding money from a partner, and having frequent disputes.

The Health Effects of Financial Stress

Unmanaged financial stress may have negative effects on one's health.

Disorders of the Mind

*According to McCoy, financial concerns can result in anxiety disorders and clinical depression.

*Depression is substantially connected with financial hardship, defined as the inability to meet expenses with available resources, according to research.

*A meta-analysis of 40 studies found that people of all income levels were more likely to suffer from depression if they were financially stressed, although the correlation was strongest for those with lower earnings.

*Of the more than 1,600 adults surveyed online, 42% said they've had panic or anxiety attacks about money. Millennials and Generation Z were hit the worst; about half of them reported these attacks, which is nearly twice the rate seen among Baby Boomers.

*Financial stress can lead to feelings of shame and guilt, according to McCoy. "Mental distress is exacerbated when clients in financial therapy express feelings of guilt or unworthiness related to unpaid debts or perceived bad financial choices," she says.

*Financial stress in the workplace increases tardiness and absenteeism by 34% and causes workers to miss nearly twice as many workdays annually as their non-stressed colleagues, according to a study on the effects of financial stress on the workplace.

*According to McCoy, negative coping habits can also result from financial stress. "Alcohol or drugs may be used as a means to dull pain, leading to a double whammy of financial difficulties and addiction, which necessitates holistic treatment approaches," she explains.

Trouble Sleeping

Many people have trouble getting to sleep or staying asleep when they're worried about paying bills or debt, according to McCoy.

Insomnia, 

Poor sleeping quality and not getting enough sleep are all associated with dealing with financial burdens.

While the occasional sleepless night is not a reason for alarm, persistent sleep disorders that develop into chronic conditions may raise the risk of dementia, heart disease, type 2 diabetes, and even cancers of the breast, colon, ovaries, and prostate.

Cardiovascular Disease and Other Long-Term Conditions

In response to a perceived danger, the body releases the stress chemicals adrenaline and cortisol, causing the heart rate to accelerate, muscles to stiffen, and breathing rate to increase.

Issues like hypertension, 

Excessive cholesterol and muscle soreness can result from this reaction if it persists over time, which is often the case with financial stress.

Studies show that people who worry about making their mortgage or rent payments on time have a twofold increased risk of heart disease compared to people who think they are financially secure.

Financial stress 

Increases the risk of heart disease and major cardiac events like strokes and heart attacks by 19%, according to a meta-analysis of five trials that examined heart health outcomes.

Deterioration in biological health, as assessed by inflammatory biomarkers, has also been associated with financial stress. Financial stress was found to be "the most detrimental to biological health," even more than bereavement or divorce. However, the study's authors did note that further investigation was necessary to validate these findings. They reasoned that out of all the ways it can impact people's lives, "leading to family conflict, social exclusion, and even hunger or homelessness," financial stress is the most physically devastating.

 

Neglect doctor visits,

Furthermore, financial stress may make preexisting health problems worse for those who suffer from them. People are more prone to forgo prescribed treatments, neglect doctor visits, and not fill prescriptions when funds are tight, according to McCoy.

Also, read https://spero.financial/financial-health-and-its-impact-on-physical-health/.

Strategies for Handling Financial Pressures

The video about how to manage financial crisis

Managing money worries doesn't have to entail hitting the jackpot. Keep in mind that being financially healthy means not letting stress over money get the best of you, especially when funds are tight.

Rather than avoiding the issue, McCoy advises facing it head-on.

1. As a financial counselor, McCoy helps her clients feel less alone in their struggles by assuring them that they are not alone and that there is support available. They are able to "move past shame to tangible action" following this, she explains.

2. When it comes to financial therapy, getting better typically involves paying attention to emotional and behavioral patterns in addition to taking practical financial steps. McCoy offers some advice on how to face your money fears:

3. Make a spending plan or budget that is reasonable. Keep tabs on your money coming in and going out, figure out what you really need, and make reasonable, attainable goals, like putting aside some money for an emergency.

4. Spending can be made more meaningful and less punitive by aligning it with personal or family values, according to McCoy.

5. Consult professionals for help. Consult a financial planner or counselor for assistance with long-term planning, savings strategies, and debt management.

6. Individuals with training in the integration of financial knowledge with mental health are known as financial wellness specialists. This group includes certified credit counselors, accredited financial counselors (AFC), and financial therapists.

7. Find ways to make use of resources available in your business or community. Free, short-term counseling and financial education are common services offered by employee assistance programs (EAPs). Furthermore, check with your local credit union or cooperative extension office to see if they offer any free workshops on money management or budgeting.

8. Make use of methods for dealing with stress. One way to alleviate the emotional toll of financial worries is to practice mindfulness, exercise regularly, or write down your thoughts and feelings about money.

9. Develop a savings account gradually to cover unforeseen expenses. A rudimentary safety net can be built up with as little as $50 each month. An important factor in stress reduction is the development of a sense of accomplishment through small, consistent progress.

Conclusion

It is normal to feel some level of stress, especially if it is situational and tied to a particular event.  But worrying about money all the time can harm your mental and physical health, such as making you more prone to anxiety, depression, insomnia, and cardiovascular disease.

Realistic budgeting, expert assistance, and stress-reduction practices can help you manage your reaction to financial stresses, even while you can't control all of them.