As part of Mental Health Awareness Month, we are exploring different themes related to mental wellbeing and stress coping practices. As we all know, there are many stressors in life, but money is one of the most universal sources of stress—no matter what the tax bracket. According to the American Psychiatric Association, when asked about their sources of anxiety, Americans put personal finances at the top at 64%. And 42% of U.S. adults say money negatively impacts their mental health according to a survey by Bankrate.
Even though many external variables may affect financial stress, there are things you can do to help manage and even reduce it.
First, focus on your health. When you are not your best, everything can spin out of control. Prioritize your own physical, mental, and emotional health. Keep active, sleep right, limit alcohol and caffeine, make healthy food choices, practice mindfulness, and stay connected to family and friends.
Next, it is time to plan. Here are a few suggestions to get you started.
Take stock of where you are with your money. Make a list of everything you own, owe, earn, and spend. This is your starting point and your method to find out where you are at right now.
Start or build an emergency fund. Begin by taking some of the dollars you may spend on dining out, specialty coffee drinks, and entertainment and put those dollars into an emergency fund. Saving $25 a week can add up to $1,300 in a year. Over time, build this up to the equivalent of 3-6 months’ worth of living expenses. Another idea is to automate the process by having a certain percentage of your income go directly into a special savings account up front that you don’t touch.
Take a page from Marie Kondo. Check your loan statements, credit card bills, memberships, and subscriptions. What are you paying? Are there better deals out there? Do you really need it right now? Answers to those questions can save you money.
Swap take-out for home meals. When crunched for time it is easy to eat out and order take-out. But if you are watching your finances (and your health), reduce eating out and take-out dining. Did you know that eating out is linked to increased morbidity and cancer? Consider trying some healthy and budget friendly meal prep at home.
Check your interest rates. If you are using multiple credit cards for your purchases, try to use the card with the lowest interest rate so you will be paying less in interest when you do pay off your bill. Even a few percentage points can save you money.
Keep calm about your investments. You might be tempted to pull out of the markets when they become volatile and retreat to safety. But if you are feeling uneasy, make an appointment with your financial advisor to go over your portfolio.
Ask for help. If you are struggling financially or emotionally, don’t keep it to yourself. There are resources that can help.
— Linda Feiden, Human Resources
