Money mindfulness: 4 ways to combat financial stress

Money worries aren’t unique to those struggling to make ends meet.

Anyone can experience financial stress, whether you’re a high earner, comfortably retired, or have a sizeable sum in savings. In fact, as Professional Paraplanner reports, a study of 500 UK adults worth at least £100,000 found that 81% said they regularly feel stressed or worried about money.

You might be worried about balancing your own current and future needs against supporting others, such as children or elderly relatives. Or you may be concerned about what the future might hold.

Whatever’s on your mind, financial stress can have a significant impact on both your mental and physical health, as well as on how you manage your finances.

To mark Stress Awareness Month in April, read on to learn about the potential impacts of financial stress and discover four ways to combat money worries.

Financial stress can impact your health as well as your wealth

Worrying about money can have a significant impact on your mental wellbeing. According to the NHS, financial stress can lead to:

• Anxiety
• Low mood or depression
• Lower self-esteem and feelings of guilt
• Sleep problems.

This can have a knock-on effect on your physical health, too. A study published by UCL found that, of the over-50s studied, those concerned that they may not have enough financial resources to meet their future needs were 59% more likely to have their biological health classified as “high risk”.

What’s more, feeling stressed about your finances can compound your problems. If you’re overwhelmed or anxious, you might bury your head in the sand and ignore your finances completely. Alternatively, it could cause you to make impulsive, emotional decisions, potentially to the detriment of your finances.

1. Practise money mindfulness

You may have heard of mindfulness as a means of improving your mental health. In essence, it involves slowing down, shutting out the noise, and embracing the present moment.

This practice can be applied to your financial mindset to help ease your money worries.

When you’re worrying about all facets of your financial wellbeing at once, it’s easy to get overwhelmed. Pensions, mortgages, insurance, tax, and investments can be a lot to tackle simultaneously.

To help alleviate feelings of stress, perhaps try:

• Slowing down to take a breath and review your current position.
• Focusing on the positives to start with, noting them down as affirmation of what you’ve achieved and what you’re doing well.
• Writing your concerns down, which might ease your mental load or even help you realise that your circumstances are better than you’d thought.

By practising mindfulness and taking stock of your present circumstances, you can help make your choices more intentional, avoiding knee-jerk decisions based on emotions. So, you may find you’re calmer and better positioned to take control of your finances, as outlined below.

2. Tackle your finances head-on

When you’re stressed and overwhelmed, it’s a common instinct to turn a blind eye to the problem.

But ignoring your stressors can actually make them worse over time. Not only could the worry build up in your mind, making it feel like a bigger problem than it really is, but the problem itself could worsen.

For example, if you’re worried about not having enough saved for retirement, you might avoid checking in on your pension. But the longer you leave it, the less time you’ll have to get your savings on track to achieve your retirement goals.

By taking control of your finances sooner rather than later, you can help nip any emerging problems in the bud and give yourself the best chance of resolving them. To help get on top of your finances, you might consider:

• Creating or reviewing a household budget to track and reduce spending
• Checking in on your pension pot and comparing against goals
• Reviewing recent legislative changes and adjusting your plans accordingly
• Assessing your protection needs and ensuring you have relevant cover in place
• Making a will and registering a Lasting Power of Attorney to prepare for the unexpected.

Of course, the appropriate steps will depend on your unique circumstances and goals. But by creating a plan to tackle your finances head-on, you could help relieve your financial stress.

3. Set goals to build your financial future

In some cases, you might feel confident about your current financial situation, but still feel stressed about achieving your future goals.

Setting yourself clear, achievable goals can help you feel more confident that you’re on track for the future you’re working towards. For example, you might set goals for:

• Reducing your spending
• Saving and investing more
• Growing your pension pot
• Regularly reviewing your will, protection, or other key parts of your financial plan.

By knowing what you want to achieve and how you’re going to get there, you can help ease your financial stress by building your confidence that you’re on the right path.

4. Get support to boost your financial confidence

There’s a lot to consider when looking to get your finances on track. Whether it’s pensions, taxes, or estate planning, many parts of your financial plan can be complex.

What’s more, these areas rarely operate well in silos. Rather, each part of your financial plan will feed into another. As a result, it’s often effective to create a holistic financial plan that brings all these areas together.

As such, it could be worth seeking support from a financial planner. We can help review your current circumstances, identify your priorities for improving your financial wellbeing in the present, and create a plan for achieving your goals in the future.

With the support of a trusted partner and a financial plan tailored to your unique needs and circumstances, you may find your financial stress begins to ease.

Get in touch

To find out more about how we can help you, get in touch.

• Marnel Stafford: email Marnel.Stafford@fosterdenovo.com or call 07305 970959
• Ryan Edwards: email Ryan.Edwards@fosterdenovo.com or call 07591 758136

Alternatively, you can call our office on 0207 469 2800.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, Lasting Powers of Attorney, or will writing.