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The Connection Between Stress And Money: How To Manage Both

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Stress and money are two topics that are often discussed separately, but in reality, they are deeply connected. Financial issues are consistently ranked among the top stressors in people’s lives. At some point, we’ve all been stressed about money. This stress can lead to a variety of negative health outcomes, including anxiety, depression, and even physical health problems.

According to a study conducted by the American Psychological Association, 72% of adults in the United States reported feeling stressed about money at least once in the previous month. Financial stress was found to be particularly high among those who reported living paycheck to paycheck, with 86% of this group reporting that they felt stressed about money.

People worry a lot about money and it affects how they handle stress and other details about their lives. In this article, we will explore the connection between stress and money and provide tips on how to manage both.

How does stress affect your money journey?

Health problems

One underlying effect of stress is that it can lead to a lot of health challenges which affects your financial health. A person who is sick will do all they can to ensure they get well, and that includes spending money on hospital trips, drugs, food, consultation, etc. It is possible to spend beyond your budget when facing health challenges.

Anxiety and depression

Stress is a leading cause of anxiety and depression. Depression is a mental illness and it psychologically affects everything about your life. The effects of depression mean different things to different people. It affects the way you make money and also the way you spend money. It could lead to making bad money decisions you might come to regret later on.

Constant tiredness

A consistent effect of stress is tiredness. When you are constantly tired, it is difficult to be innovative in your workplace or business. This can affect the way you make and spend money and consequently how you feel generally, which can lead to more stress.

Reduced productivity

Another effect of stress is reduced productivity. Making money involves being productive and offering value. Stress reduces your productivity and if it’s not properly managed, can affect your work performance. When you are not able to meet up with your productivity level, it might affect how much money you can make and spend subsequently.

Bad habits

Bad habits like overeating, excessive drinking, excessive shopping, smoking, etc might come up as a result of stress. While these habits are bad for you, they also require spending money to sustain. This can lead to overspending and sometimes borrowing money. 


Some people overspend when they are stressed. They either go on a spending spree or the habits they fall into require money to keep up with. This makes it difficult to effectively make their financial decisions or plan adequately for them. 

Job loss

We can say that worrying about money is one of the reasons people are stressed but it is not surprising that stress that is not properly managed can lead to job loss. When you don’t meet up with your responsibilities at the workplace due to factors resulting from stress, you may lose your job. Losing a source of income will affect your finances and probably lead to more stress.

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How to manage stress

Identify stressors

The first step towards managing your stress is to identify your stressors. What makes you stressed and what can you do to avoid them or make things better? Identifying your stressors and putting plans in place to minimize them gives you a headstart in managing stress.


One of the benefits of exercising is reduced stress levels and a general feeling of wellness. You can either subscribe for a gym membership or exercise at home. It is important to regularly exercise. Asides from keeping you from being stressed, it also affects your health positively. There are reduced chances of you going to the hospital and spending money.

Healthy eating habits

Most people don’t realize that the money they eat has a profound effect on their general well-being. Eating healthy reduces your health risks and susceptibility to stress. Eating healthy doesn’t have to be expensive. There are good meal plans you can access that are beneficial to you. Cutting down on junk food as much as possible is also important.


The body needs rest and the fastest and most efficient way to rest is to sleep. It’s been advised to get a minimum of 7-8 hours of sleep daily. Not sleeping properly can adversely affect your health and be a leading cause of stress for you.

Support system

Having a community that supports you can help deal with stress. You people who love and support you to help you unwind after a hectic day. It is important to spend time with friends and family and engage in fun activities. Staying happy can have a thrilling effect on your well-being.

How to effectively manage stress and making money

Have multiple sources of income

Having multiple sources of income increases your income and if you are not worrying about money so much, there is a possibility you’ll have fewer reasons to be stressed. Also, working too much can be a source of stress. It is important to build systems in place that don’t require you to exert yourself all the time.

Create a budget 

One of the best ways to alleviate financial stress is to create a budget. A budget helps you to see exactly where your money is going and can help you make better financial decisions. When creating a budget, make sure to include all of your expenses, including things like rent/mortgage payments, utilities, groceries, and entertainment. Most importantly, stick to it.

Build an emergency fund

Unexpected expenses can cause a lot of financial stress. To prepare for these types of situations, it’s important to build an emergency fund. This fund should contain enough money to cover 3-6 months of living expenses. With an emergency fund, you don’t have to worry about how to meet unexpected expenses. 

Prioritize self-care

Managing stress is just as important as managing your finances. Prioritizing self-care activities like exercise, meditation, and spending time with loved ones can help alleviate stress and improve your overall health.

Seek professional help 

If you are struggling with financial stress or finding it difficult to manage your money, consider seeking professional help. Financial advisors, counselors, and therapists can all provide valuable guidance and support to help you create a balance.

Avoid comparing yourself to others

One of the biggest sources of financial stress is feeling like you are not keeping up with others. Remember that everyone’s financial situation is different, and it’s important to focus on your own goals and priorities. Don’t try to meet up with a standard that shouldn’t be there in the first place.

Bottom Line

Stress and money are deeply connected, and managing both is critical for maintaining good health and financial stability. The connection implies that one affects the other. Hence, it is important to take care of yourself while growing your finance. Remember that managing stress and money is a journey, and it’s important to be patient and kind to yourself along the way.

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