How to manage financial stress

3 minutes

They say money can’t buy happiness. Maybe not. But it often brings peace of mind.  And when financial stress takes hold, it can affect many aspects of everyday life. If you’re feeling the pressure, you’re not alone.

Taking stock of your finances, building a realistic budget and making use of available support resources can help ease financial stress.

Here are a few practical tips to help you get back on a solid financial footing.

What to keep in mind

  • Financial stress is common, and its impact can reach well beyond your bank account.
  • Taking stock of your income and spending can help you pinpoint the sources of financial pressure.
  • Even small changes to you budget can pay off in the long run.
  • And you don’t have to navigate it alone. A range of resources and professional support services are available to help you find solutions that work for your situation.

What is financial stress?

Financial stress is much more than worrying about your unpaid credit card balance. It can show up in different ways:

  • Problems staying within your budget
  • Rising debt
  • Living paycheque to paycheque, with no flexibility
  • Being unable to save, whether for short-term projects or for retirement
  • Inability to take on unexpected expenses
  • A decrease in income due to a disability

What are the impacts of financial stress?

Financial stress can affect much more than your wallet. It can have an impact on:

  • Couple or family life
  • Relationships with friends and colleagues
  • Work performance
  • Sleep
  • The insured person’s overall health
  • Appetite

Those consequences can be significant enough to prompt you to take back control of your finances.

Financial stress by the numbers

According to the National Payroll Institute (NPI), worrying over money is a significant cause for stress:

  • 48% of Canadians confirm they suffer from insomnia caused by money woes.
  • 44% admit they would have trouble managing their budget if their paycheque was deposited late.

The impact of financial stress at work

Financial pressures don’t disappear when the workday begins. They can affect you at the office just as much as they do at home. Lack of concentration, distractions, absenteeism and even an increase in work accidents...to name just a few examples of how financial stress can wreak havoc on your professional life.

An NPI survey conducted found that employees in this country spend approximately 40 minutes thinking about their finances during business hours. Whether they’re checking their credit card balance or contacting their financial institution, these activities translate into an 8% drop in daily productivity.

Time is money is another expression we often hear and it’s true. For a company of 200 employees, financial stress adds up to approximately $200,000 in lost productivity.

Make the most of your group insurance benefits

When financial stress starts taking a toll on your physical or mental health, it's important not to ignore it. Getting the right support is often the first step toward regaining a sense of balance.

If money-related worries are affecting your day-to-day life, explore the resources and services available through your group insurance plan. And if your employer offers an employee assistance program, it’s a valuable resource to consider. These programs can help with a range of challenges, including:

  • Mental health
  • Financial wellness
  • Guidance to help you navigate a difficult period in your life

Building a budget that works for you

It’s the most important step of this process. Building a budget helps you compare your income and expenses so you can clearly see where your money is going.

Take all the time you need to list all your expenses and make sure you don’t omit anything. The more thorough you are, the easier it will be to spot opportunities for adjustment.

Which expenses should you prioritize?

Reducing your spending doesn’t mean cutting out everything you enjoy. So focus on investments that will pay off in the long run, such as:

Access to credit and your spending habits could be contributing to your debts. Cut back where it matters. The first step is to identify expenses that add little value to your day-to-day life.

How can you lower your expenses?

Have all your budget numbers at hand to assess where you should make cuts.

Start by taking a fresh look at your ongoing expenses.  As your circumstances change, some services and spending habits may no longer make sense for you.

Consider the following:

  • Is my cell phone plan still the right fit?
  • Am I paying for subscriptions that I don’t need?
  • Could shopping around for insurance, Internet or other services help me save?
  • Are there any recurring expenses I could scale back or eliminate altogether?

The easiest way? First, reduce the small expenses that add up without realizing it. Dining out, grabbing a daily cappuccino, making spur-of-the-moment clothing purchases and paying for several streaming services can add up faster than you think.

Before pulling out your credit card, take a moment to reflect on your spending habits and make sure each purchase supports what matters most to you.

Seek professional help

You don’t have to be facing financial challenges to benefit from the support of one of our financial advisors.

Whether your goal is to get your budget back on track, boost your savings, prepare for retirement or protect your wealth, they can help you make informed decisions with confidence.

Before putting together a personalized plan for you, they will examine all your finances:

In addition to getting a picture of your financial situation, they will propose steps you can take based on your reality and needs.

To restore order to your budget... for free

Still having trouble making ends meet? There are provincial agencies such as non-profit organizations and community groups that can help you with your budget.

Their services are provided free of charge.

Struggling to keep up with debt?

Even when you’re doing everything you can, debt can sometimes become a significant source of stress.

If managing your financial commitments feels overwhelming or is weighing on your mind every day, it may be time to speak to a professional. Licensed insolvency trustees can review your situation and help you understand the options available to you.

A consultation does not automatically mean bankruptcy or a consumer proposal. Quite the opposite. The earlier you seek help, the more likely you are to find solutions tailored to your needs.

Financial stress can feel overwhelming. You don’t have to carry that burden alone. Taking a closer look at your finances and tapping into the resources available can help you strengthen your financial situation and improve your overall financial well-being.

FAQ

What are the impacts of financial stress?

Financial stress can take many forms, including ongoing worries about money, trouble staying within your budget, sleep issues and a sense that your finances are slipping out of your control.

Can financial stress affect my work?

Absolutely. It can impact your ability to focus, increase distractions and reduce productivity.

How can I ease financial stress?

A good first step is to create a budget, reassess some of your spending habits and take advantage of available support resources.

When should I seek help?

If financial worries are affecting your daily life or managing your debt feels overwhelming, consider reaching out to a professional for guidance.

This article is intended for information purposes only and should not be construed as professional advice.