The cost of financial stress is greater than you think

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Key points

• In a BrightPlan survey, 92% of employees reported some form of financial stress due to economic uncertainty.
• US companies lose $200 billion in productivity and effort due to financial stress.
• 64% of employees say financial stress is taking a toll on their relationships, and 72% admit to missing social gatherings because of costs.

It’s no secret that finances can cause stress, but how widespread is the problem? Worrying about paying your bills, providing for your family, and meeting your financial goals can take a toll on not only your wallet but your mental health as well. A recent survey by BrightPlan shows that financial stress among employees and employers has a greater impact than we think.

Impact on work

According to the survey results, 92% of employees experience financial burdens due to unstable economic conditions. Among the main factors contributing to financial stress are the steeps inflationa potential recession, rising interest rates and the recent turmoil in the stock market.

Financial stress also affects senior executives, with 76% of C-Suite and HR executives experiencing it. On average, employees miss more than one day of work a week, costing US businesses an astonishing $200 billion a year in lost productivity and engagement.

Impact at home

The effects of financial stress aren’t just limited to the workplace. According to the BrightPlan study, 64% of respondents agree that financial stress has worsened their relationships with friends and family.

A whopping 72% of people have had to turn down social invitations due to financial constraints. But it’s not just social events and relationships that are suffering: 60% of people questioned believe that financial difficulties have had a negative impact on their health.

Financial struggles can take a toll on your relationships and every other aspect of your life. Feelings of isolation, embarrassment, and shame often stem from financial worries, which make the situation even worse.

Reduce financial stress

The good news is that you can take action to reduce your financial stress and regain control of your money. Here are some practical ways to start moving towards financial peace of mind.

Build your financial knowledge

Start by using financial well-being programs offered by your employer. Shockingly, one in four employees surveyed are unsure whether their company offers financial benefits. If your company doesn’t offer any, he searches for free financial resources you can take advantage of it.

Develop a proactive approach and seek out lectures, online seminars, and mentorship programs. Not sure where to start? The BrightPlan study shows that employees most want the following financial benefits:

If you don’t plan, you plan to fail

Another way to reduce financial stress is to build a financial plan. Having a clear plan and understanding where your money is going can help relieve stress and give you a sense of control over your finances.

This plan should include setting financial goals, such as pay a credit card or build an emergency fund. Setting financial goals gives you a clear plan and direction, which can help eliminate financial anxiety.

Tell your money where to go!

One of the biggest stresses of managing finances is not knowing where your money is going. Creating a budget it can help you manage your money better. Start by writing down all your monthly bills and expenses and compare them to your monthly income.

Budget apps it can do this automatically and give you encouragement along the way. Apps like Mint and Rocket Money let you link your own Bank account to get an overview of your finances. The information these apps provide is invaluable when it comes to money management.

Increase your income and reduce your expenses

Next, try to increase your income by negotiating a raise, getting a part-time job, or hiring a side hustle. Second, evaluate your spending habits and look for areas where you can cut back, such as eating out or subscription services. Also, make a plan to pay off credit card debt as soon as possible.

Keep a positive attitude and celebrate the small victories along the way. Overcoming financial stress can take time and effort, but it’s a worthy investment in your future.

The cost of financial stress can manifest itself in many ways, including decreased productivity, lost days of work, and strained relationships. But there are ways to combat it. By understanding its impact, increasing financial literacy, and taking advantage of free resources, we can reduce the negative impact it has on our lives. Remember that taking care of your general well-being and your finances go hand in hand. Investing your time and effort into both can pay off in the long run.

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