Five steps to tame financial stress


Do you sometimes lie awake at night thinking about bills that need to be paid? Does it feel as though you’re drowning in debt? If this describes you, you might take solace in knowing that you’re not alone.

A recent report released by the American Psychological Association (APA) shows that 72 percent of adults feel stressed about money at least some of the time, and 22 percent said they are extremely stressed.

The bad news is that stress can lead to multiple health problems, including fatigue, headaches and depression. Over time, stress can contribute to more significant health issues, such as high blood pressure and heart disease. The good news is that there are some simple steps you can take to reduce or eliminate your financial stress.

1. Stop and assess

The first step in reducing financial stress is to look at your situation objectively and create a snapshot of your current financial condition. List all of your financial obligations. Start with the items that are causing you the most stress. For debts, include the principal due, the interest rate and the minimum payment amount. Review your bank account and credit-card statements to track where your money is going. The goal here is not to solve the problem; it’s to determine and document the scope of the problem. You might find that this step alone significantly helps alleviate your stress (think of it as facing your fears).

2. Talk to your spouse

If you’re married, talk to your spouse or partner – it’s important for several reasons. First, you and your spouse need to be on the same financial page; any steps you take to improve your situation are going to be most effective if pursued jointly. Second, not being on the same page as your spouse is only going to lead to additional stress. In fact, the APA report showed that 31 percent of spouses and partners say that money is a major source of conflict or tension in their relationship. Additionally, your spouse or partner can be a valuable source of emotional support, and this emotional support alone can lower stress levels. If you’re not married, family or friends might fill this role.

3. Take control

Go back and take a look at where your money is going. Are there changes you can make that will free up funds you can save or apply elsewhere? Even small changes can make a difference – and exerting control over your situation to any degree can help reduce your anxiety level. Start building a cash reserve, or emergency fund, by saving a little each paycheck. Think of the emergency fund as a safety net; just knowing it’s there will help reduce your anxiety. Work up to a full spending plan (yes, that’s another way of saying a budget) where you prioritize your expenses and set spending caps – and then stick to them going forward.

4. Think longer term

Look for ways to reduce debt long term. You might pay more toward balances that have the highest interest rates. Or you might consider refinancing or consolidation. Beyond that, though, you really want to identify and prioritize your long-term financial goals. Then calculate how much money you would need to fund those goals, and implement a savings plan.

5. Get help

Always remember that you don’t need to handle this alone. If the emotional support of a spouse, friends or family isn’t enough, or the level of stress that you’re feeling is just too much, know that there is help available. Consider talking to your primary-care physician, a mental health professional, or an employee-assistance resource. A financial professional can also be a valuable resource in helping you work through some of the steps discussed here, and can help direct you to other sources of assistance, like credit- or debt-counseling services. The most important thing to keep in mind is that you have the ability to control the amount of financial stress in your life.

BARBARA KENERSON is first vice president/Investments at Janney Montgomery Scott LLC and can be reached at

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