Coping with financial stress
Financial stress is emotional tension specifically related to money and is a real challenge for many people right now. Here are some practical and emotional steps you can take to manage financial stress.
Practical Steps
Do a budget check-up.
Regain feelings of control by taking charge of finances and budgeting:
Set aside time to understand what money comes in and goes out every month. List them down in a notebook or a spreadsheet to get full visibility.
Decide what can you manage without in the short term? However, if you do reduce memberships that give you satisfaction and enjoyment, try and replace them with a similar but free activity you can still do.
If there is any way to increase income in the short-term then make a plan towards this. Perhaps you can sell things you no longer need on free apps or facebook market place; others will be looking for bargains too.
The downside of contactless cards and not taking receipts is that we lose sight of expenditure. Write down everything that you spend so that you can see when, where and how quickly you spend money and where your weaknesses lie. Make a commitment to sticking to your budget.
Educate and include your children.
Children become used to certain treats and may complain when these are reduced, but, you can use this time to educate them now about finances and choices so that they have essential skills for their adulthood. Try not to worry them, but see it as building important life skills. Make a game of finding fun free things to do, which might even mean more 1:1 time with them.
Understand debt management and the debt cycle.
If the reality is what you fear and there is not enough to pay for everything and your debt is growing, you can take steps to reduce payment demands on you:
Speak to mortgage providers, local councils, landlords, utility companies, credit card companies and anyone you make regular payments to, to help you put reduced or delayed payment plans into operation.
Contact debt management organisations or charities, such as Step Change or the national debt helpline who will help you understand your rights and what steps you can take. The Citzen’s Advice also have helpful advice.
Understand how interest works and debt mounts. Pay attention to interest rates and pay off the highest interest charging debt first.
Wellbeing Steps
Financial stress can soon spiral because of the catastrophic consequences that we can imagine when we feel unable to provide for ourselves and our family. Being able to manage stress is vital in remaining reasonably calm so that you can think straight and not allow worry to take over your life.
“Being able to manage stress is vital in remaining reasonably calm so that you can think straight and not allow worry to take over your life.”
Learn how to manage your financial worries.
Identify what the worries specifically are when they arise, and write them down. Decide if you can take any action right now. If you can, then make a plan to sort it out and take action; this might be one of the budgeting steps above. If you can’t, remind yourself that you have done what you can and then commit to taking your focus away from that worry, letting it pass, and re-focus on whatever activity you are currently doing, putting all your attention on that.
Seek support from friends and family.
Don’t suffer alone and use your support system to gain fresh perspective or ideas that might help. You don’t have to go into detail but sharing part of your problem can relieve some of the worry and feelings of isolation financial stress can bring.
Practice relaxation techniques.
Relaxation techniques will help put you in a calmer physical state, which will also aid your mental state. Try these Breathing and Mindfulness techniques to get you started.
Practice good self-care.
This is an often overlooked but important part of mental fitness. It allows you to get what you need to keep physically and mentally well, to care well for others in your life, and offset the build up of stress. Some ideas are suggested in this self care wheel.
Where to get help for Energy, Finances, Food, and Mental Health
Energy:
Fuel Bank Foundation help if you find it difficult to pay your energy bills
National Energy Action A fuel poverty charity helping those in need access benefits
Fact Sheet on dealing with high energy bills from National Debt Line
Financial and cost of living:
Citizen Advice has a comprehensive guide that can help with living costs of all kinds and they signpost to other helpful organisations.
Step Change and National Debt Line for free and impartial debt and money advice
Breathing Space - a government debt respite scheme
Food:
The Trussell Trust - the UK’s largest food bank who also provides a listening ear and links to other support agencies
Your Local Pantry - a food club plus community and neighbourhood support
Cooking on a Bootstrap offers nutritious yet affordable recipes
Mental health:
Mind - mental health charity: 0300 123 3393
Samaritans - Tel: 116 123 provides 24/7 support no matter what you are struggling with.
Shining a light on suicide offer more links on where to get help for money problems