Finances are a Main cause of stress This can affect mental and physical health if not activated. Stress and finances are inevitable parts of life, and you have a hard time finding someone who doesn't have money problems of your own.
In 2019, 59 percent of Americans were alive Salary to salaryand a majority expect the cycle to continue through 2020. This was long before the current recession that broke out Unemployment records and made two rounds Stimulus relief Packages through Congress.
This is certainly a source of financial hardship for millions of Americans, but the stress can be managed. budgeting has helped 86 percent 97 percent of people believe everyone should have a budget. But are the Americans planning to find their financial base?
We surveyed 1,500 Americans to determine how often they feel financially burdened and how they deal with it. We learned:
20% of Americans face financial stress every day
31% turn to their budget to reduce stress
A majority of millennials ignore their financial burden
Read on to learn more about our study, or read our infographic to learn how to deal with normal stress.
Almost a quarter of Millennials face financial stress every day
Our survey found that 66 percent of Americans experience financial stress several times a year. Millennials are in line with the average, with 34 percent not experiencing stress more than once a year. However, the stress that millennials experience tends to be much more overwhelming. Almost a quarter of 25 to 34 year olds suffer from financial stress every day – the largest representation of all age groups.
While 23 percent experience daily stress, 47 percent of millennials experience it at least once a month. Millennials are most likely to experience daily financial stress, but they are also the least likely to be overwhelmed by overall finances. A majority do not worry more than once a year.
This could be caused by both your career and your stage of life. The 25 to 34 year olds earn on average $ 44,064 a year. That's around $ 13,344 more than the 20- to 24-year-old average, which is a fairly comfortable life for younger millennials. However, most Americans get married, become parents and buy houses between the ages of 25 and 34. This growing responsibility can make $ 44,000 feel cramped, especially when compared to 35-45 year olds, who make $ 10,000 more than Millennials with similar responsibilities and Total debt.
28% of Americans ignore their stress
The majority of Americans are struggling financially and at some point decide it is time to reconsider their budget. In less than a second, 28 percent of Americans decide the best thing to do is to just ignore their financial troubles. The majority of these Americans are men, 34 percent of whom let go of their problems.
The next most popular and far healthier solution is to discuss problems with a friend or family member. Women talk about their problems just as often (21 percent) as they ignore them (22 percent).
Why Do Americans Ignore Their Money Problems? This may be because checking your finances can add to the stress – at least initially. Many of us know we have debts and interest payments, however 65 percent of Americans don't know how much they spent last month. Another third wish they had spent less, even if they didn't know how much they spent.
It's hard to come to terms with your debt and potentially bad spending habits. It may feel like accepting your financial mistakes, but you will only fail if you don't try to fix the situation. Looking at your expenses and financial situation is the first step in improving your financial well-being.
Tips for dealing with financial stress
Financial stress is inevitable, and while it can feel disastrous, there are things you can do to deal with it. It looks different for everyone, but nobody is immune and it's okay if you don't know how to deal with your situation at first. That's why experts are there online and in person help you learn. That's why we reached out to a few experts for advice on how to reduce stress.
Talk to someone
Facing your debt can be intimidating and overwhelming. Getting started is one of the biggest barriers to controlling your finances, but you don't have to do this alone. Experts advise you to speak to someone and share your concerns and stresses in order to find the support you need.
"Of all the lessons I have learned about money in life, the most important one to realize was that talking about money with your friends and family can be a great first step in relieving stress," offered Alyssa Davies of Zolo and Confused moneyof their personal difficulties in paying off debts.
"I realized that after a tough conversation with friends and family I got so much relief. I told them the truth and they all accepted and they helped me stay on track while I focused on to become financially stable. "
Identify what is causing your stress
Wealth strategist Brian Halbert indicates that most people have a misunderstanding about their financial burden and believe that if the problem is their debt, they are making too little money.
"The reality is that they (people in financial stress) have too high a debt to income ratio … In times of stress, success will be achieved by those who can identify key areas and focus on fixing "holes". "
Check your budget
Budgets are working documents, which means they don't need to be created and left alone. Keeping an eye on how you are doing at least monthly, although weekly is better, can protect you from financial storms.
"Sometimes we have the feeling that money is just flying out of our pockets and we don't know how and where it went ”, shares Eduardo Litonjua, founder of Passive income tree. "Track your spending habits for at least a month as this will show you where you are over-spending or where you can save."
Talk to a professional
If you are not already maintaining your finances or are experiencing extreme stress, it may be time to seek help from a professional. Sean Messier from Credit card insider recommends that you contact a trustee.
"These professionals must explicitly work with your interests in mind. If you are unsure whether you can afford a financial advisor, see if your community has nonprofit financial support groups. Pro bono financial aid may be more accessible than you think. and when you have problems it can be invaluable. "
Remind yourself that it will get better
Easier said than done, but your financial situation is temporary. You will change jobs, pay off debts, and your buying habits will change throughout your life. Remind yourself that with a little work, you can and will get better at maintaining the motivation to achieve your financial goals.
The majority of Americans try to deal with financial stress as best they can. With a large chunk of Americans living from paycheck to paycheck and the state Financial literacy Education can make it difficult to face your bank account and spending habits. For this reason we recommend that you take your Credit scoreCreate a budget and track your expenses to keep track of your finances. For more tips on wellness and stress relief, see our infographic below.
Sources: stress | CDC | prevention | health | Harvard | Credit wise
This study consisted of two survey questions carried out using Google Surveys. The sample consisted of no fewer than 1,500 completed answers per question. Stratification weighting was used to ensure an accurate and reliable representation of the total population. This survey was conducted in September 2020.