Tips to reduce your financial stress

Recent research¹ reveals financial stress is increasing

Sweaty palms. Short of breath. Mind racing. We all know the signs of getting stressed when it comes to our finances. And the worrying news is that it’s happening to more of us more of the time.

Research¹ reveals that financial concerns are very much top of mind, leading to anxiety and guilt.

And it can be a vicious circle. A prolonged state of stress can reinforce future negative expectations as it’s difficult to envisage a more positive situation.

The result? It makes it difficult to look at your future financial position rationally and objectively as you can get so caught up in day-to-day worries.
 

Hot under the collar at work…

The report highlights that financial stress is increasing, with 64% of working Australians reporting some level of stress. Almost a million employees are severely financially distressed and just over two million are moderately distressed.

In total, more than one in five working Australians are suffering from severe or moderate financial stress, with 21% of employees prevented from working productively—almost double the number reported two years ago. We end up spending a total average of 10.8 hours a week dealing with financial matters and stress at work.

In the context of our careers, this means we’re feeling pessimistic about our prospects, pay rises and promotions. And we’re feeling less satisfied, energised and engaged by our work.

In short, we’re operating on autopilot.

How to cool down and take stock of your finances

So if you're getting worked up , how can you cool down and start taking control of your finances? It’s difficult but the answer could lie in positive, constructive and easily digestible actions.

• Using an online tool such as a budget planner calculator could help you get a better understanding of your finances.
• If your debts are starting to overwhelm you, there are ways to pay off your loans more quickly and reduce how much you pay in the long run.
• If you feel like your spending is getting out of control, it could be a good idea to get in the habit of tracking your spending.

Speak to your financial adviser

Sometimes it's hard to know where to start and you can feel overwhelmed, so speaking to an expert can set you on the right path – get in touch with your financial adviser about which of the above options are right for you.
 

¹  AMP 2022 Financial Wellness Research Report