According to a Better Money Habits Millennial Report, 41% of millennials are chronically stressed about money. 65% of millennials say that money stress impacts their well-being, 49% say it impacts relationships, 42% say it impacts their physical health, and 22% say that money impacts their work.
That’s a lot of stress!
No matter how young or old you are, I’m sure money-related stress impacts all age groups and not just millennials.
Also, don’t assume that money-related stress only impacts those who have a lower income. According to CNBC, those with a net worth of $1,000,000 or more still feel a significant amount of money stress. They fear that everything will be gone just like with a flip of a switch.
As you can see, money stress can impact all different types of people.
Money stress may:
- Cause you to lose sleep;
- Make you sick, nauseous, etc.;
- Lead to high blood pressure;
- Hurt your career;
- Impact your family;
- Make you angry or sad; and more.
However, you need to realize that money-related stress is something that you can have control of.
Below are several ways to fight money stress so that you can get your life back!
Figure out what’s causing your money stress.
There are many different reasons for why you may be experiencing money stress. You may be in debt, living paycheck to paycheck, spending more than you earn, and so on.
You won’t be able to eliminate your money stress unless you figure out what your problem is.
After you realize where your money stress is coming from, you can then create an action plan to fix whatever is wrong.
You may need to earn more money, pay off your debt, save more, learn how to deal with financial situations in a better way, and so on.
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Talk about money with your loved ones.
If you are feeling money stress, there is a chance that you may be feeling like you are all alone. Instead, you should talk about money problems that you may be having with your partner so that you can find a solution together.
Regularly communicating about money is an important step for every relationship. Being open about your money situation can help prevent any surprises, it will ensure that both people in a relationship are aware of what’s going on, and so on.
You and your partner should sit down every so often such as once a week, once a month, or whatever timeframe works best for the two of you.
Realize that more money won’t always make you happier.
In 2010, a study came about money and it’s relation to happiness was published. According to the Wall Street Journal:
The magic income: $75,000 a year. As people earn more money, their day-to-day happiness rises. Until you hit $75,000. After that, it is just more stuff, with no gain in happiness.
Yes, more money may help you solve some problems, but if you don’t have a firm grasp on your finances then more money may just lead to more problems.
Understand that money and things don’t define you.
Too many equate their worth with how much money they make or what they are able to buy. In reality, though, how much money you make and spend doesn’t define who you are at all.
Remember that keeping up with the Joneses won’t help you.
Keeping up with the Joneses will make you broke and unhappy because:
- You will never be happy no matter how much money you spend.
- You will constantly compare yourself to EVERYONE.
- You will go into debt because that’s the only way you feel like you can keep up.
- You will have a loan payment for everything because that’s the only way you can “afford” everything.
- You won’t have any money left over for retirement, an emergency fund, etc. because you’re spending it all on things you do not need.
Read more about how to avoid keeping up with the Joneses here.
No matter how bad your money stress may be bringing you down, you should still remember to have fun.
Having fun and enjoying life can improve your mood, help you be more healthy, clear your mind, and more.
There’s a myth out there that being frugal means you can’t have any fun. Many believe that frugal fun doesn’t even exist. There are plenty of ways to enjoy your life while staying on a realistic budget.
Stop living in the past.
When many are feeling financially stressed out, they start regretting everything they’ve done in the past that has ever cost money.
In fact, I recently overheard someone joking about how stressed out they get when they just think about their past money mistakes, such as even something as small as buying fast food.
While thinking about your past money mistakes may help you realize that you’ve made errors in the past so that you can change for the future, dwelling on them will only waste your time and ruin your mood.
This leads to my next point…
Yes, I realize that thinking positively can sometimes be tough when your money problems are getting you down. However, it’s important to remember that thinking negatively most likely will not help your situation at all.
Thinking positively may help you persevere, move on, and find a better solution to your problem.
Does money stress impact you?