How to Manage Financial Anxiety Before It Hurts Your Health

Remember that old saying, “When it rains, it pours?” Sometimes, finances can feel like that, too. Maybe it’s an unexpected medical bill, an expensive visit to the vet, mounting student loan debt or the threat of being laid off that’s making money feel tight and causing you to worry.

Here’s what’s important to remember: It’s normal (and even expected) to experience some amount of stress about finances, especially during these uncertain times. However, if it’s becoming overwhelming and constant, it’s important to do something about it, so your stress levels don’t impact your health … leaving you with another medical bill to pay.

How financial stress affects your health

You’re probably aware of some of the ways that stress affects your health. If you’ve been unable to stop worrying about money problems, having a hard time falling asleep (or staying asleep), dealing with memory issues or coping in not-so-ideal ways (i.e., drinking more alcohol than usual, smoking, overeating or not exercising), those are signs that your financial situation might be causing chronic stress and affecting your health and well-being.

“As with any potential stressor, if our emotional response to a financial stressor starts to impact our ability to effectively manage our day-to-day life, this is a clear indicator that we should consider seeking professional support to find better ways to manage this stressor,” says Katherine Scott, MSW, the assistant director of Social Work and the Behavioral Health Integration Program at UW Medicine.

Even if you think you can manage a bout of insomnia, chronic stress can have serious long-term effects on your health, including high blood pressure and an increased risk of heart disease. Yes, stress can be exhausting and frustrating, but more than anything, it’s just not good for you.

Money problems and shame  

Of course, dealing with financial stress is easier said than done. One major hurdle? Embarrassment. It’s common for people experiencing financial hardship or anxiety to feel shame about their situation, which can make addressing it even more difficult. It can cause you to isolate yourself or feel your self-worth is lower because of your situation. 

This could lead you to avoid your finances altogether, not checking your bank account because of the anxiety it brings, for example. That avoidance can lead to more poor financial decisions, more shame, more anxiety, and then, well, the spiral continues.  

Having debt doesn’t make you a bad person. Larger structural or economic forces that have nothing to do with you have likely affected your financial situation more than anything you could have personally done. And if those feelings of shame and embarrassment prevent you from addressing the situation, not only will your finances suffer, but your mental health will, too.  

How to manage financial stress

So what should you do when your money worries are keeping you up at night?

“There is no one-size-fits-all approach to managing a high-stress situation like financial security,” says Scott.

That said, here are some ways to get started in addressing your stress.  

Start small

It can be overwhelming, or downright paralyzing, to think about your financial situation when things aren’t going well. Instead of trying to tackle everything at once — or avoiding it altogether — try just taking one step forward.  

“Focus on small, manageable goals rather than trying to make many big changes at once,” says Scott.  

Maybe start by checking your accounts once a week to get a sense of your expenses and spending habits. Or just choose one thing to audit, like the subscriptions you’re paying for, and see if there are any that you aren’t using.  

If you’re worried about not having a cushion if you get laid off or hit with a medical bill, start putting a small amount from each paycheck into a flexible savings account or an emergency fund.

Look for support

It can be easy to feel alone in your money problems, but don’t let shame or avoidance prevent you from asking for help working through it, whether it’s your partner, a trusted friend or a family member. They may be able to see things from a different perspective and help you come up with ways to address the issues you’re facing that you didn’t see.  

And you’re not alone if budgeting and financial planning are not your strong suits. But that shouldn’t stop you from building your confidence with money, wherever you are in life. 

A budgeting professional or financial planner can be a huge help, but if that’s not, well, in your budget, there are plenty of more affordable resources available for those who might need assistance, from local financial literacy classes to free online tools, courses and budgeting software to help you learn more about your specific financial situation and the best ways to work through it.

Find ways to metabolize your stress

On the other hand, obsessively checking your accounts and beating yourself up for every unnecessary expense or spiraling over every dip in your 401(k) is not helpful either.  

A lot about your financial situation is not in your control, and the issues you’re facing likely won’t all be solved quickly.  

“While we might not be able to make financial stressors in our life go away, we can get better at metabolizing the stress in healthy ways,” says Anne Browning, PhD, the chief well-being officer at UW Medicine and the associate dean for well-being at the University of Washington School of Medicine. “When we are not clearing the stress that builds up day to day, we can hit a point of saturation where we are living in a state of overwhelm.”

And when you’re overwhelmed, you’re probably not going to have the perspective and mental flexibility you need to start solving your money problems or improving your financial security.  

Browning recommends going outside into nature, practicing gratitude and connecting with others as ways to reset your nervous system.  

And, says Scott, many of the best ways to take care of yourself don’t cost lots of money.  

“Getting enough sleep, eating a nutritious diet, exercising and letting yourself have fun can also help you manage these feelings while you’re defining and adjusting your budgeting and spending practices,” she says.

Talk to your doctor  

If your stress has become so overwhelming that it’s impacting your mental health, you should reach out to a mental health professional. Your primary care doctor can also help you manage your mental health and connect you to other resources.

Helen Orbach, MD, a primary care doctor at UW Medicine Primary Care at Kent-Des Moines, says your doctor can even request a referral for you to see a social worker, who can provide resources and suggestions for cost-savings with other basic everyday needs, including transportation, utilities and housing.  

If you have healthcare-related costs that are causing you stress, talking with your doctor can help with this, too. They can look into prescribing generic medications, evaluate whether a test or referral is absolutely necessary, and connect you with a patient assistance program to help manage medical bills.

It’s hard to find time to care for yourself when it feels like other priorities — like money — are more important. But remember: You come first. To manage your finances, you need to make sure you’re taking care of yourself, too.