Roughly 16 million people in the UK say they deal with financial stress. However, the figures could be far higher, with one report suggesting 60% of employees believe financial woes are affecting their mental health.
This shows that the impact of money stress is not just financial. It affects our inner wellbeing and relationships. Although the stakes can be high, fortunately, there are some practical steps to manage money worries. Moreover, professional financial advice can bring relief and clarity.
The research from psychologists is clear - financial stress is a significant contributor to anxiety, depression and emotional distress. Money worries can manifest in many unhealthy ways, such as disrupted sleep and impaired decision-making.
Left unchecked, financial stress can fuel a vicious cycle of stress that worsens both mental and physical health. It can also put major strain on relationships, leading to conflicts (e.g. between a husband and wife) and reducing social support when it is needed most.
Over time, these stressors can lead to a decline in daily functioning. Your overall life satisfaction can suffer, leading to a decline in holistic wellbeing. Fortunately, you are not powerless. There is much you can do to address money stress - even if it feels overwhelming and unsolvable.
Quite often, money worries act like a magnifying glass, making the issue appear bigger than it really is. What is needed, therefore, is a clearer understanding of your finances.
The best way to start this process is to analyse your income and expenses - what money comes in and what goes out each month. The result? A reduction in feelings of uncertainty and a rise in control over your situation. When you know what you are dealing with, you can tackle it.
A financial adviser can be invaluable here. Whilst you can likely devise a monthly budget on your own, a professional can help you gather and review your financial information more comprehensively - alleviating stress by creating a clear path forward.
38% of Britons see it as vulgar to talk about money, viewing it as an “off-limits” topic. The taboo can make it difficult to bring issues out into the open, often leading to their persistence. Yet, by sharing your concerns with a trusted and knowledgeable person, it gets easier to lower stress.
You might talk to a trusted partner or family member. For professional guidance, a financial adviser can lighten the emotional burden by bringing their experience to the table - highlighting the bigger picture (that you might have missed), and offering hope from past client cases.
When you don’t know what to do in a difficult financial situation, this can lead to paralysis. Or, it can sometimes cause harmful reactive decisions. The benefit of developing a realistic plan with a professional is that you can break this cycle.
An adviser can guide you through a practical, step-by-step plan to move you in the right direction with your finances. For instance, they can help you prioritise your debts and bills - bringing immediate relief to big pressures.
Also, a professional can identify opportunities for you to save and invest over time (e.g. via a pension). Another benefit is that they can help you sagely prepare for the “what if?” situations that could derail your finances - e.g. building a protection plan in case of serious illness.
This ongoing partnership provides reassurance and flexibility, adapting the plan as your circumstances evolve. The sense of progress and control gained from a structured approach reduces anxiety and increases financial resilience.
Money worries can feel like a big obstacle, and it’s easy to assume you need to tackle it all at once. However, research shows that it is usually better for financial wellbeing to make small, consistent steps. For instance:
Analogy: you don’t get strong in the gym by hitting the biggest weights straight away. You ease yourself in, to avoid injury, and so you can track your progress over the weeks and months.
Another benefit of a financial adviser is their expert knowledge of how to break complex financial challenges into manageable chunks.
With their guidance, you are more empowered to make informed decisions. This brings a quick and lasting boost to your confidence and lowers that overwhelming feeling.
A financial adviser can play a vital role in tackling money-related stress. However, sometimes there is a deeper psychological impact that requires broader assistance.
If you are experiencing chronic anxiety, depression or relationship difficulties, then also consider speaking to a qualified mental health professional alongside your financial planner.
Many financial advisers collaborate with mental health resources or can signpost you to impartial support services like the MoneyHelper helpline, providing a holistic approach to your financial wellbeing.
Remember, you don’t have to face money worries alone. Our financial advisers are here to support you every step of the way to a more secure and confident financial future.
If you’d like to ensure you’re taking the right steps to protect your wealth and safeguard your financial future, please get in touch.
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