The Ripple Effects of Financial Stress on Physical Well-being

It is a well-known fact that prolonged financial stress is detrimental to your mental as well as your physical wellness. Recognising and understanding financial stress is the first step on the road to being able to avoid, deal with it, and help you to recover from it,

Financial distress can be described as anxiety-driven stress that results from financial events or a series of financial events in your life. Typically, it is often brought about by things like buying a new home or a loss of income. However, the current cost of living crisis means that many people are experiencing financial stress even without these factors.

How Financial Stress Materialises Itself in Physical Ways

If you experience high levels of financial stress, it can easily affect your physical health in many ways, both directly and indirectly. It can lead to issues including:

• Alcoholism
• Digestive system problems
• Elevated blood pressure
• Headaches and migraines
• Heart disease
• Immune system weakness
• Muscle tension
• Sleep deficiency
• Weight gain

Many people here in the UK live with these sometimes-chronic health conditions, and they can prove seriously debilitating.

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According to the mentalhealth.org.uk, a new survey of 3,000 people commissioned by the Mental Health Foundation in November 2022 found that 29% of adults experience stress, 34% experience anxiety, and 10% reported feelings of hopelessness due to financial strain.

Dealing with Financial Stress

The link between health and wealth is acknowledged worldwide, especially when it comes to physical health and financial stress, and it is little different in the USA. Every year, the American Psychological Association (APA) carry out a stress in America study, and every year, it’s money that tops the list of causes. The signs of financial stress include things like:

1. Being worried and anxious about your money situation.
2. Having money-related arguments with loved ones.
3. Feelings of guilt when you spend too much on non-essentials.
4. Being scared of answering the phone or opening your post.

Any or all of these signs or symptoms can lead to real physical illnesses and conditions, as described earlier. Yet, these illnesses and conditions can be alleviated by applying appropriate stress management techniques such as:

1. Talking to someone – Bottling things up makes your financial stress worse. In the current cost of living crisis, many people struggle through no fault of their own. You will likely find others are fully appreciative of your problems. The act of talking about your financial problems with someone you trust can make the problems seem less intimidating.
2. Opening up to your family.
3. Carrying out an inventory of your finances. List all your income and all your outgoings, including debts. Try to identify spending patterns and triggers and look to eliminate any impulse buying.
4. Make small changes. Small amounts can quickly add up to something significant.
5. Do some financial planning.

Stress, whether it is caused by your financial situation or something altogether different, can negatively affect your lifestyle. It’s not uncommon to isolate yourself, resort to alcohol, and inappropriate use of drugs to seek relief.

There are many things you can do to try and cope with these negative effects, including things like seeking counselling, taking regular exercise, and trying relaxation techniques like meditation and mindfulness, but dealing with the symptoms is only part of the answer. You need to identify what is causing these issues, as it is only by addressing the root cause that you can find the cure.

For instance, if you are living beyond your means, you’ll need to change some of your lifestyle choices. But once you’ve got yourself back on track, the next thing on the agenda is to make sure you stay on track and take measures to avoid succumbing to financial stress again in the future.

How Savings and Investments Can Help

It takes careful preparation and sound money management to start on the path to financial security and the best way to ward off financial stress is to be prepared. Having an emergency fund you can turn to is a real help, so when doing your financial planning, budget for one. Every action you do, from saving to investing, brings you closer to a day when you can relax without worrying about your money.

In order to promote financial stability and reduce stress, it is helpful to compare and contrast the different financial instruments available, such as a savings account, general investment account, and a pension account. As an dividual, you need to know if to save or invest, evaluate if an ISA is better than savings account given your financial situation and risk tolerance. While an ISA might offer significantly higher interest rates, people often choose to save their emergency fund money in a savings account for easy access. However, for their long-term savings, many choose stocks and shares ISAs because they offer significantly higher interest rates, albeit with an element of risk.

Seeking Professional Help

Apart from incorporating stress management techniques, such as mindfulness and yoga to mitigate the physical impacts of financial stress and enhancing overall well-being, seeking professional help is also important.

Having professional healthcare access is important for helping to deal with the symptoms, but so too is having access to professional financial help because, as we’ve already said, dealing with the cause (in this case, financial difficulties) is absolutely key.

The importance of saving and investing to help you avert financial stress in the future cannot be overstressed. But knowing which saving and investing vehicles are best for you now and in years to come is no easy thing, which is where finding a good financial advisor to work with can be beneficial.

Whoever you decide to work with, first ensure they are FCA-approved and that any schemes you invest in offer FSCS protection. It will help to minimise risk.

The Holistic Approach to Financial Wellness

Financial wellness, like physical and mental wellness, is essential to holistic health. A holistic attitude to financial wellness takes human factors into account, such as age differences, demographics, individual goals, and motivations. They all affect a person’s financial needs.

A good place to start grasping the overall meaning of holistic financial well-being is by reading an article entitled “Financial Wellness: A Holistic Approach To Money And Life Satisfaction.”