Have you experienced stress due to financial instability or do you know someone who has? It is well established that there is a strong relationship between financial stress and mental health. Of course, if you have recently lost your job or you suddenly need to pay for emergency expenses, it makes you anxious. But how does the connection really work? Here’s a more detailed look at how financial stress takes a toll on your mental health.
The Physiology of Health and Stress
Stress is a natural reaction of the mind and body to our life experiences. We all experience stress once in a while. Although it’s beneficial during short-term situations, stress, in general, affects a person’s health negatively. Physical symptoms of stress include headaches, upset stomach, chest pain, and high blood pressure. It can even contribute to chronic diseases, such as heart disease and diabetes. Under stress, the liver produces additional blood sugar to provide you with extra energy. Nevertheless, if your body won’t be able to process this sugar rush, you’re at risk of developing type 2 diabetes.
The central nervous system is in charge of the body’s fight or flight response. What happens during stress is that your body responds by releasing the stress hormones cortisol and adrenaline, which increase your breathing and heart rates and tense your muscles. When the stressor is gone, your hypothalamus should tell all your systems to go back to normal. However, if the stressor is still there, your body response will continue. This can lead to chronic stress, and in turn, further medical and mental health problems.
Money and Mental Health
According to a survey conducted by the American Psychological Association, money is the top stressor for many Americans from all economic backgrounds. And we know how overwhelming financial stress can be. This is the kind of stress that may become prolonged and largely increase the risk of mental health issues, such as anxiety and depression. A 2013 study discovered that people with anxiety and depression were three times more likely to have financial obligations. There’s even an association between debt and suicide.
How does financial stress lead to mental health problems? Although the precise mechanism of how financial burden affects mental health is still unknown, there are various ways in which this stress affects the mind and your overall health.
When you are under financial distress, your cognitive functioning is affected. You constantly worry. If money is a safety net to you, you become fearful and vulnerable without it. As you miss your payments, whether it’s on your rent, credit card, or utility, you’re anxious about how you will manage your repayments. There’s so much negativity, and you cannot make a sound decision as stress and fear of the future take over your world. You lack self-confidence and feel worse about yourself.
When you have financial worries, you become emotionally challenged. You feel unhappy and sometimes feel guilty. You become consumed by the thoughts of how much money you have or don’t have or how you’re going to feed your family. Despite the fact that you may be financially responsible, an unexpected expense can catch you off-guard and send you into a financial crisis. If you’re not prepared for it, you may feel hopeless and helpless.
When you are experiencing financial difficulty, your behavior also changes. You cannot relax. You may not be able to sleep, thinking “how can I sell my house fast” so I can have extra cash? You tend to change your eating and sleeping patterns. Who would not toss and turn at night if you just lost your job and you have not saved enough to cover the days to come?
When you lose out on good sleep, your mood and energy levels are also affected. This then affects your productivity and the way you relate to people around you. You tend to withdraw socially. However, the debt burden worsens when you deal with it alone. Additionally, financial stress can fuel arguments and tension with people, even with those who are closest to you.
Coping with Financial Stress
Like other sources of stress, financial stress itself is not the only problem. It’s also how you respond to it.
If the stress caused by your financial situation is too much for you and you know it’s affecting your mental health already, take a minute to pause. See how you can effectively manage your stress. That’s one of the best things you can do for yourself, even if you can’t control its source.
If you need to consult both financial and health professionals, do so. Try to understand your debt or financial issue and get yourself out of it. Think long term. The likely reason why you’re stressed out about finances is that you need more money; can you make an effort to create additional sources of income or fix your budget? Also, do not keep the matter to yourself but share your concern with trusted friends and family members. They may be able to give you a new perspective on how you can get your financial issue under control.
When you practice self-care and learn how to cope with financial stress, you feel you’re becoming more emotionally well and stronger. You will become more able to bounce back from financial stress and cope better with other difficult life events. Think of it like an investment in your emotional future – one that is always worth making.