5 Silent Signs of Financial Stress

1. Checking Your Bank Account Too Much—Or Not At All

It's important to find a balance when checking your bank account: If you notice yourself checking your account multiple times a day out of fear, this is often a sign of financial anxiety. On the other hand, if you avoid checking your bank account altogether, this usually means that you are avoiding the reality of your financial situation, which can lead to serious financial problems like missing bill payments, and could even eventually snowball into you losing your home if mortgage payments aren’t paid on time.

2. Worrying About Spending Money

If you are worried about spending money on even the most minor things (like a cup of coffee, for example) despite being able to afford it, you are probably experiencing some level of financial anxiety. When you are hyperaware of every purchase that you are making, this can be detrimental to your mental health and cause serious mental health issues such as depression and insomnia.

3. Constant Fear of Financial Ruin

Living in fear of a financial disaster (even when it's unlikely) is another silent sign of financial stress. If you are experiencing this fear, it is likely that you have already started cutting costs on everything, which may be harming your health and happiness.

4. No Work/Life Balance

The pressure to earn more money or to pay off debt can cause you to overwork, meaning you sacrifice time that could be spent with your family or friends. A lack of work-life balance will make you feel drained, overwhelmed, and stuck in a cycle of never-ending responsibilities. This could cause you to burnout and make you feel like you’re living to work rather than working to live.

5. Avoiding Discussing Finances with Friends, Family, or a Financial Adviser

Many people feel reluctant to share their financial concerns with those around them; however, discussing your financial situation with friends, family, or a financial adviser will make getting support or guidance easier. It can also prevent strain on personal relationships, as money worries often spill over into arguments or feelings of resentment.

Financial stress can affect us in a number of ways, which can lead to serious mental health conditions, including depression, anxiety and insomnia. Money worries have a way of touching nearly every aspect of our lives. Take the fear of retirement, for example; it’s common to worry about whether you’ll have enough money saved in your pension to retire comfortably, but that anxiety can creep in even if your retirement is still decades away.

The good news is that financial stress doesn’t have to control your life—it can be managed with a clear plan. Here are some tips which can help you to take charge of your finances and improve your mental well-being:

1. Build an emergency fund: Having a safety net which can cover unexpected expenses or emergencies will reduce your financial anxiety and give you the confidence that you're prepared for the unexpected.
2. Live within your means: Spending less than you earn will prevent you from accumulating debt and the stress that comes with it.
3. Avoid impulse spending: Taking time to think through your purchases will help you avoid unnecessary expenses that can drain your bank account.
4. Utilise financial tools: Use financial tools like the Wealth Flow App to help you visiualise your net worth, connect all of your assets in one place and plan your route to financial independence. 

Managing your finances can feel daunting, but avoiding them only increases the possibility of mental health issues arising. By recognising the silent signs of financial stress and taking proactive steps like budgeting, setting goals, and seeking advice, you can gain control of your financial health and alleviate the mental toll that money worries can cause.

On this World Mental Health Day, remember that taking control of your finances is one of the most empowering things you can do for both your mental health and overall well-being. Break the silence by downloading the Hoxton Wealth app and speaking to one of our financial advisers, who can help you create a plan to manage your finances more effectively.