Financial stress can really mess with your mental health, overall well-being, and even your relationships. According to a 2023 Compare the Market survey, worrying about personal finances and paying the bills was the top cause of stress for 61% of Aussies last year.
Whether it's the rising cost of living, losing a job, struggling to find work, dealing with debt, or facing an illness or injury that affects your household's income, money worries are real. But don’t worry, we've got some straightforward strategies to help you cope better with financial stress.
How often do you feel stressed?
Top Causes of Stress
Tips to tackle financial stress
- Get your budget sorted and stick to it Creating a budget helps you keep track of your income and expenses, spot areas where you can save, and plan for your future goals. Use online tools or apps to make it easier. Sometimes, just seeing everything written down can make it feel more manageable.
- Knock down your debts Debt can be a huge stressor, especially if you're dealing with high-interest loans or credit cards. Try paying more than the minimum each month and focus on the debt with the highest interest rate first. You might also consider consolidating your debts into one loan with a lower interest rate.
- Build an emergency stash Having savings set aside can help you handle unexpected events, like a car breakdown, medical bills, or job loss. Aim for three to six months' worth of living expenses in your emergency fund, but even a small amount can make a big difference.
- Protect your income Income Protection insurance can give you up to 70% of your monthly income if you can’t work temporarily due to illness or injury. Total and Permanent Disability (TPD) insurance provides a lump sum if you become totally and permanently disabled and can't work again. These insurances can cover living expenses, medical costs, and debts, giving you peace of mind that your family will be financially protected in a worst-case scenario.
- Don’t be afraid to ask for help Feeling overwhelmed by your finances? You’re not alone. A financial adviser can help you assess your options and create a plan, so you feel more in control and can sleep better at night. Reach out and get the support you need.
Financial stress is tough, but with the right strategies and support, you can take control of your money and your future.
To talk to someone and receive support with mental health, the following Australian organisations are available to call 24/7. In an emergency situation please call 000.
- Lifeline – 13 11 14
- Kids Helpline – 1800 55 1800
- Beyond Blue – 1300 224 636