Looking at the Impact of Financial Stress
- April 1, 2021
- By: Greenpath Financial Wellness
May is Mental Health Awareness Month – a time to raise awareness about the importance of mental health and well-being, especially important now with the uncertainties caused by the ongoing pandemic.
When it comes to personal finances, many studies show that your overall mental well-being is directly correlated to your financial health.
Given the connections with mental well-being, shared here are the common questions people have about the impact of financial stress.
How does financial stress impact a person’s life?
The impact of financial stress is a daily challenge for many people.
Based on GreenPath’s sixty-year experience serving clients with financial wellness counseling, some of the biggest challenges we hear from our clients stem from uncertainty.
People face uncertainty about how to meet monthly living expenses, how to prioritize cost of housing in the face of any income changes, as well as financial strain being felt by the newly unemployed or furloughed as well as those still working but facing an uncertain future.
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There is also significant uncertainty about when COVID related debt relief programs will end, including mortgage forbearance extensions and student loan debt relief programs.
Financial stress can impact mental health, increase worry and anxiety, and compromise getting a good night’s sleep and overall physical health.
Financial stress can also impact family relationships.
As an example, a young couple recently shared with us how their financial challenges, including getting a pre-foreclosure notice from their mortgage lender, caused tension in their relationship – leading them to work with GreenPath to get options to manage their finances.
Healthy Habits to Help Manage Financial Stress
Financial literacy can start with building better money habits and celebrating the small wins.
For instance, from setting a simple spending plan to working to saving goals, being your own cheerleader is actually a good way to reinforce your new habits, which in turn makes it easier to stay on track if you hit a bump in the road at some point.
Eliminating debt, learning new spending habits, and building savings are choices that can change your life. They can affect your overall well-being by reducing stress levels.
This month is a great time to refresh your goals, make new milestones, and commit to your financial health.
Connect with a caring financial counselor to conduct a free financial counseling session for options to reduce your financial stress.
If you are ready to manage, and eventually eliminate, your debt, turn to GreenPath for a free financial assessment.