Invest in your financial well-being and reduce stress and anxiety

What can I do to reduce financial stress and improve my health?

There are solutions that promote financial, physical and mental wellness. Here are a few to keep in mind:

1. Stop losing sleep over money worries

Stress caused by debt can disrupt your sleep. “If you spend your night worrying and looking for solutions to your financial problems, you will be sleep deprived. This will have both an emotional and physical impact,” says Donna Ferguson, a psychologist at the Centre for Addiction and Mental Health in Toronto. By relieving your stress, you will find it easier to relax. This will lead to better quality sleep. Better sleep will help you avoid weight gain and decreased immunity that can be caused by insomnia.

2. Keep your heart healthy

The physical effects of financial stress can also negatively affect your heart. Why? Because of cortisol. Your body releases this hormone as a response to stress. Cortisol then increases both your heart rate and blood pressure. It’s no surprise that the rate of heart attacks significantly increases during periods of economic uncertainty. If you adopt wise investment habits, you’ll be able to weather economic setbacks. This is a good way to reduce financial stress.

3. Manage your blood sugar levels

Cortisol may also explain why managing diabetes while experiencing financial stress is more difficult. This hormone naturally increases your blood sugar level. As a result, when cortisol levels are high, managing your blood glucose is more complicated. By managing your financial stress, you will encourage lower cortisol levels. This will make it easier for you to keep your blood sugar levels in check, which reduces the risk of complications.

4. Lower your risk of depression and anxiety

“In general, mental illness is not just the result of financial stress. There are other risk factors, including genetic predisposition, which play an important role. However, financial stress can be a critical element that triggers depression or anxiety,” says Ms. Ferguson. 

Struggling to meet basic needs can exacerbate depression. Financial stress can also create tension in your relationships which can negatively affect your mental health. By maintaining your financial health, you will have one less source of tension. This approach and the support of health care providers should help you to better manage depression and anxiety.

How to stop stressing about your finances

The good news is that just drawing up a plan can reduce your stress and help you breathe easier. 

1. Create a budget you can stick to

Get started now with ourr Budget Calculator. This tool can help you better manage your spending and spot if your budget is balanced or not. It’s not complicated. Answer a few questions and you’ll see the results.

Keep in mind, budgets are like diets. They can prevent you from enjoying your money just as diets can eliminate the pleasure of food. The solution is to draw up a realistic plan that will help you reach your goals without being totally restricted.

2. Consider life insurance

Ensuring the financial security of your loved ones in the event of a serious illness or death can be a source of stress. Taking out life insurance and critical illness insurance that provide financial protection for your family can reduce this stress. 

Are you unsure how much life insurance you might need? Try our Life insurance calculator.

3. Build an emergency fund

Having a financial safety net can significantly reduce stress. Aim to save 3-6 months of living expenses in an easily accessible savings account. Start small if needed - even $500 can help cover minor emergencies. Knowing you have a cushion for unexpected costs provides peace of mind.

4. Take advantage of employee benefits

An increasing number of employers provide their employees with opportunities to improve their financial literacy. Find out if you have access to financial advice through your group benefits plan.

5. Focus on what you can control 

While you can't control the economy or unexpected expenses, you can control your spending, saving, and financial education. 

Before making purchases, especially large ones, take time to consider if they align with your financial goals and values. You can also listen to financial audiobooks and podcasts, take online courses, or work with an advisor to boost your knowledge about budgeting, investing, and long-term financial planning.

Focus your energy on these aspects to reduce feelings of helplessness.

6. Talk to an advisor

Planning for the future is challenging, but you don’t have to do it alone. An advisor can help you build a plan that meets your needs. They can also provide more detailed information and answer any questions you may have.