The Hidden Cost of Financial Stress and How to Reclaim Control

The Real Cost of Financial Stress

Financial stress is more than just a worry; it’s a heavy burden that can have serious repercussions on both your physical and mental well-being. For many women, especially those who feel underprepared or unsure about managing their finances, the stress surrounding money can be overwhelming, leading to long-term health issues and emotional turmoil. In this post, we’ll explore why financial stress is such a critical issue and what can be done to alleviate it.

Understanding the Impact of Financial Stress

Money is the number-one source of stress in women’s lives, as confirmed by a 2022 Ellevest (US) survey. The survey found that 43% of women worry about money daily, and 59% do so at least once a week. This persistent stress doesn’t just affect your wallet; it affects your entire life.

Money stress has been linked to a range of health problems, including anxiety, depression, inflammation, high blood pressure, and even asthma. Because women tend to earn less and own less than men, the financial stress they experience disproportionately affects their health from the outset.

But it’s not just about physical symptoms. Financial stress can also lead to a lack of confidence and a feeling of disempowerment. When women are conditioned not to talk about money or to believe that they are “bad with money,” they are less likely to seek out the financial education or advice they need. This silence and inaction can perpetuate a cycle of stress and financial insecurity.

The Connection Between Financial Stress and Health

A growing body of research documents the strong connection between financial anxiety and health struggles. Financial stress can lead to serious health problems, such as heart disease, headaches, insomnia, and even a higher risk of early death. Some US studies found that simply thinking about financially stressful situations can increase pain levels and lower tolerance, highlighting just how powerful the mind-body connection can be when it comes to money​.

The effects of financial stress are not just limited to those with low income. How you feel about your money situation, regardless of your actual financial status, can significantly impact your health. This means that even those who are financially well-off are not immune to the detrimental effects of financial anxiety.

The Cycle of Financial Stress

The process of financial stress is cyclical: poor finances lead to poor health, and poor health, in turn, can exacerbate financial problems. For instance, when money is tight, people may forgo necessary medical treatments, which can lead to further health complications and, subsequently, more financial strain. Behavioural responses to stress, such as reduced exercise, increased alcohol consumption, and unhealthy eating habits, further compound the problem​.

Breaking the Cycle

Not everyone with financial challenges ends up anxious or ill. The key is to address money issues before they escalate into serious health threats. Experts recommend several strategies to ease the burden of financial stress:

1. Create a Financial Plan: Take concrete steps to manage your debt or start saving for emergencies. Even a small step can restore a sense of control, which can have significant health benefits.
2. Strengthen Your Financial Resilience: Building a rainy-day fund can reduce the stress of unexpected financial shocks.
3. Don’t Forget Your Mental Resilience: There are coaching approaches, such as Solution-Focused, or Cognitive Behavioural, that can be helpful. Taking an informed compassionate look at your Money Mindset can be the key to offloading already quite a mental weight in dealing with finances. Unfortunately it is often overlooked.
4. Practice Mindfulness and Self-Care: Engaging in activities like yoga or meditation before tackling financial tasks can help you approach them with a clearer mind and reduced anxiety.

Flourish Financially: Supporting Women to Take Control & Step Into Their Financial Power

This brings us to the importance of addressing financial stress through mindset and education. That’s why Minna Schmidt and I are passionate about helping women turn money from a source of stress into a source of strength.

Join us for our upcoming event on August 19th, where we’ll delve into strategies to tackle financial stress head-on and help you become more confident in your financial decisions. This session is designed to empower you with the tools and mindset needed to manage your finances effectively, giving you the peace of mind you deserve.

Don’t miss out—register today and take the first step toward a healthier, more confident financial life.

Event Details- Money Conversations #2

📅 Date: Monday, August 19, 2024
🕒 Time: 17:00 CEST
🔗 Join us on LinkedIn Audio

Sincerely yours,

Dr. Sophie

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Inspired by:

Ellevest Team. (2024, July 16). Is a financial planner worth it? Here’s our honest answer. Ellevest. https://www.ellevest.com/magazine/personal-finance/is-a-financial-planner-worth-it

Harris, D. (2024, April 15). Is money making you sick? Time Magazine. https://time.com/6966650/money-stress-illness/

PwC. (2019). Employee financial wellness survey. PwC. https://www.pwc.com/us/en/private-company-services/publications/assets/pwc-2019-employee-wellness-survey.pdf