6 tips for dealing with financial stress

Your finances may feel like a lot to handle right now. Still, there’s a bright side: you can take small-but-impactful steps to improve your financial and mental well-being.

We asked Dr. Eliana Cohen, a psychologist, and Yoldas Ozturk, a financial security advisor at Sun Life, for their insights.

3 ways to support your mental health

“Most people stress about money from time to time,” Dr. Eliana Cohen explains. “But it can become problematic if it disrupts your everyday life. You might find you can’t focus, or you can’t enjoy the things you normally enjoy.”

When you’re in this situation, Dr. Cohen says it can be a lot to process. “Your nervous system is going into overdrive.”

She suggests settling your nervous system – and supporting your mental health – with these three steps.

1. Start calming your mind and body

A good place to begin? Deep breathing exercises. The rate and depth of your breathing directly affects your mind and body.

Deep breathing is slow, deep and abdominal. You can build it into your daily routine whenever you have a spare moment. And it can be done anywhere: in your car, at your desk – or even while you watch your favourite streaming service.

Practising deep, slow breathing for as little as three minutes can make a noticeable difference to how you feel.

It can also help calm your mind and body to practise yoga, meditation or tai chi.

2. Talk to a health-care professional

Seek out support from your family doctor or a mental-health professional. (To find someone near you, try our health-care provider search.)

A health-care professional can help you navigate any continuing effects of financial stress on your physical or mental well-being.

They can also advise you on how to maintain – or regain – healthy habits. Your family doctor might refer you to specialists, if required.

3. Be kind to yourself

You may be experiencing intense emotions. If so, try to treat yourself as kindly as you would treat a good friend.

As Dr. Cohen says: “The point of entry is self-compassion. It’s a detox from negative thoughts about yourself.”

She believes that self-compassion can also be a key step in getting yourself ready to manage your financial situation – potentially with the help of an advisor.

3 ways to reduce financial stress

Yoldas Ozturk, a financial security advisor at Sun Life, says this may sound simplistic, but it all starts with a plan.

“Planning is the key element,” he explains. And as far as support goes: an advisor can help – “even if you’re in debt.”

He suggests these three steps to proactively address financial stress.

1. Create a budget that works for you

When Ozturk meets with a new client, his first step is to look at how much money is coming in and going out.

Next, it’s important to explore your priorities and concerns. Maybe you’re wondering how to meet daily expenses – or how to manage the financial impact of unexpected events.

From there, Ozturk says advisors work with clients to build a budget to help them reach their goals.

“A proper budget is crucial to a well-built plan. If expenses go up now, you may have to tighten up your cash flow. But that means down the line when you’re ready for retirement, you’re in a good position.”

2. Improve your financial literacy

Another key step, Ozturk says, is to review your investment options and insurance options, as well as other aspects of financial know-how.

“A lot of people aren’t aware of the different financial options. An advisor can bring some important perspective based on the client’s unique goals and risk tolerance.”

3. Look at the potential in your financial future

With retirement weighing on many people’s minds, Ozturk offers this insight.

 “Where you are in Year One isn’t where you’re going to be in Year Five or Year 10. Don’t look at what you have today. Instead, look at the potential for what you could have down the line, and how you’ll reach it. This may help reduce feelings of anxiety while you are working toward your goals.”