Join UsFinancial Stress – The Unwelcome Guest
Ah, money. It has the power to bring freedom and joy but also stress and sleepless nights. One day you’re counting the change for a cup of coffee; the next, you’re stressing over bills or feeling the financial stress from that wedding invite you can’t decline.
Financial stress is real, and it’s one of the most common worries we see among members of all ages. But don’t worry – we’re here to share how a few changes in financial habits can have a big impact on your peace of mind.
Understanding Financial Stress
Financial stress is a common problem that affects people from all walks of life. It can take a huge toll on mental and physical health, relationships, and overall quality of life. Financial stress can lead to sleep difficulties, weight gain or loss, depression, anxiety, relationship difficulties, social withdrawal, and physical ailments. People who struggle with debt are more than twice as likely to suffer from depression. Financial stress can trigger anxiety symptoms such as a pounding heartbeat, sweating, shaking, or panic attacks.
Who’s Feeling the Money Squeeze? (Hint: It’s Almost All of Us)
Turns out, financial stress doesn’t discriminate! It can affect anyone, but some seem to feel the pinch more than others.
For example, young professionals are often burdened with student loans and in many cases need to buy a car, pay rent, and generally there are a few big celebrations along the way. This economic hardship often leads to a lot of stress in the finance department.
Family Homeowners often have mortgage repayments, food, utilities, and the bottomless pit of expenses that come with children. Many family homeowners have made financial juggling into an art form… the Jackson Pollock abstract expressionist type of art!
Those in lower-paid roles often feel the pinch too, especially with rising costs for essentials and the occasional unexpected expense.
For each of these groups, financial stress can lead to sleepless nights, anxiety, and even that feeling of dread every time the bank statement arrives. But here’s the good news – there are ways to help yourself tackle financial stress without it taking over your life.
The Link Between Money and Poor Mental Health
Let’s face it: financial troubles don’t just sit quietly in the background. They can creep into your day-to-day, impact your relationships, sap your energy, and even have a negative effect on your self-esteem. Here’s how it breaks down:
Stress and Anxiety: Financial anxiety is one of the top triggers for anxiety, especially if you’re in a cycle of debt or constantly worried about making ends meet.
Sleep: Financial stress and insomnia go hand in hand. If you’re lying awake at night worrying about bills or that car repair you can’t afford, you’re not alone.
Confidence and Self-Worth: When money is tight, it can start to feel personal. Many of us internalise financial struggles, which can impact our self-confidence and our ability to focus on work, family, or other areas of life. This is more pronounced when you see others who don’t seem to have these stresses.
The difference is noticeable when you’re in a good financial position. Feeling in control of your finances brings a kind of peace that helps you feel more relaxed, sleep better, and live in the moment – no nagging financial worries tagging along.
Tips to Keep Financial Worries in Check – For Everyone!
Thankfully, you don’t need a big bank balance to make changes that ease financial stress. Here are a few practical, budget-friendly tips to keep your mind and money in balance: Financial literacy is crucial in understanding and managing your finances effectively.
- Track Your Spending – and Stick to It: Knowledge is power, and knowing where your money goes is the first step to taking control. Track your expenses for a month – you might find a few surprises (you might have to say goodbye to the daily cappuccino). Simple adjustments can go a long way.
- Set Up a Rainy Day Fund: Having a little extra cash set aside can make a huge difference for unexpected expenses. Even setting aside a few euros each week builds a cushion over time, giving you that peace of mind to know you’re ready for whatever life throws your way. If you’re looking to set up a savings account, talk to us.
- Take Advantage of Free Resources and Advice: There are free online resources to guide you through managing finances, such as MABS (Money Advice and Budgeting Service).
- Prioritise What Matters Most: Being mindful of what you truly value can change your approach to spending. Maybe it’s a family holiday once a year or saving for a dream project. By focusing on these, you’re more likely to save in areas that don’t matter as much to you.
Small, Everyday Habits to Keep the Stress at Bay
Improving financial well-being isn’t about drastic changes; it’s about consistent, small actions that make a big difference over time. Financial planning plays a crucial role in this process:
- Set a Budget and Stick to it: Whether you’re doing the weekly shop, or buying a new sofa or TV, you should always set a budget and stick to it. It’s easy to get carried away and before you know it, you have spent way more than you planned to. Did you know that if you cut your weekly shop by €15, you would save €780 per year!
- Top Tip – never go shopping on an empty stomach – hungry shoppers spend 64% more and buy 88% more products than those who are not hungry!
- Automate Savings: Set up automatic transfers to your savings account each payday. You won’t miss what you don’t see, and you’ll have a tidy sum saved before you know it.
- Get the Best Deals: There’s a thrill in finding a good deal, and if you’re willing to opt for second-hand, you can often save a lot.
- Slash your Subscriptions: In 2023, Irish consumers spent a combined €1.3 billion on video streaming alone – this doesn’t include music, meditation apps, nutrition plans, etc. For example, if you have the basic plans for Netflix, Disney Plus, and Spotify, you’re paying around €30.97 a month, or €371.64 annually. Check your subscriptions and cancel if they’re not used, or alternate between subscriptions for 3 months to maximise their value.
- Leverage Being out of Contract: Did you know that on average, most people save between €300 – €500 by switching their electricity and gas annually? The best deals are for new customers, so take advantage of them. If you’re out of contract with your TV/broadband/mobile provider, haggle to get a better deal, and don’t be afraid to walk away.
- Pay online if there is a discount: Many companies offer discounts for purchasing online – these range from between 10-15% as it reduces their costs for admin. If you shop online, always check the import fees and the total cost and compare them to a local vendor.
- Insurance: Pay in full if it’s cheaper and always shop around. Don’t over-insure. Only pay for what you need, or what is covered. Check out our great value Credit Union Insurance and get a hassle-free no obligation quote.
- Be a Power Ranger: Unplug your chargers and appliances when not in use. Use kettles, hair dryers, tumble dryers & electric showers sparingly – if you are making a cup of tea, don’t boil the full kettle!
- Get Creative with Entertainment: Fun doesn’t have to cost a fortune!
Finding Emotional Support During Money Problems
Financial stress can feel isolating, but the truth is, it’s something many people experience. Don’t hesitate to reach out:
- Talk It Out: Sometimes just sharing your concerns with friends, family, or a trusted advisor can be a relief. At Croí Laighean Credit Union, we’re here to listen and offer help without judgment.
- Use Mental Well-being Services: If financial worries start affecting your mental health, it’s okay to seek extra help. Many people find counseling or support services helpful in navigating stressful periods, and financial counseling can provide professional guidance.
- Remember, Financial Struggles Don’t Define You: It’s easy to feel overwhelmed or think you’re alone but remember that financial stress doesn’t determine your worth. Give yourself credit for every small step you take toward financial well-being.
Overcoming Financial Challenges
Overcoming financial challenges requires a combination of financial knowledge, planning, and discipline. It’s essential to take control of your finances by creating a budget, tracking your expenses, and making smart financial decisions. You can start by identifying areas where you can cut back on unnecessary expenses and allocate that money toward saving and debt repayment.
Seeking free financial advice from reputable organisations can also help you develop a personalised plan to overcome your financial challenges. Additionally, practicing good mental health habits, such as meditation and exercise, can help you manage stress and anxiety related to financial worries.
Breaking the Cycle
Breaking the cycle of financial stress and poor mental health requires a long-term commitment to managing your finances and prioritising your mental health. It’s essential to recognise the signs of financial stress and seek help when needed. You can start by talking to a trusted friend or family member, seeking professional advice from a financial advisor or a therapist, or reaching out to a support group.
By taking small steps towards managing your finances and prioritising your mental health, you can break the cycle of financial stress and poor mental health. Remember, it’s okay to ask for help, and seeking support is a sign of strength, not weakness.
Peace of Mind is Priceless
Financial stability is crucial for mental well-being, and taking control of your finances, even in small ways, can have a ripple effect. The path to financial wellness isn’t about being perfect – it’s about making gradual, realistic adjustments that add up over time. So, take a deep breath, grab a notebook, and start with one small step today. And remember, we’re here to help you every step of the way.