These are difficult times for many of us as our salaries struggle to keep up with the rising cost of goods and services. This, in turn, may cause what's called 'financial stress.' You may experience this if you're constantly unable to sleep or worried about the future because of your money-related anxiety.

What's financial stress?

This refers to a state of discomfort or anxiety caused by your current or perceived financial situation. This may happen if you don't have enough financial resources, mounting debts, uncertainties about your future, and other financial-related worries. While others may think of it simply as a mental health issue, it can also affect your physical health, relationships, and overall quality of life.

What causes financial stress? 

You may experience this form of stress for a variety of reasons, which include the following: 

1. Low income or job loss. You may experience this if you recently lost your job or experience a decrease in your income. 
   
   
2. High debt. High levels of debt, such as credit card debt or mortgages, can cause financial stress. This can be especially difficult if you're struggling to make payments. 
   
   
3. Unexpected expenses. If you need to deal with medical bills, car repairs, or home repairs, these can further aggravate your situation, especially if you aren't insured or don't have the savings to cover the costs. 
   
   
4. Uncertainty about the future. You're probably familiar with this as the price of fuel, groceries, and other necessities continue to rise. You may also experience financial stress if you're unsure about your job's stability, such as what happened recently in tech companies like Google and Facebook that laid off thousands of employees at once. 
   

The physical toll of financial stress

Financial stress can also impact your physical health. This could increase your susceptibility to illnesses, which in turn, could increase your medical expenses and further cause you to worry. 

It's important to speak with professionals who can help you address the root causes of your stress to prevent this from seriously impacting on your quality of life. 

Physical manifestations of financial stress include the following: 

1. Insomnia or sleep disturbances. It can interfere with your sleep and lead to insomnia or other sleep problems. 
   
   
2. Headaches and muscle tension. It can also cause physical tension, leading to headaches and muscle aches. 
   
   
3. Digestive problems. You may also experience digestive problems, such as indigestion, stomach pain, and diarrhea if you are financially stressed. 
   
   
4. Cardiovascular problems. Chronic financial stress has been linked to an increased risk of heart disease and other cardiovascular problems. 
   
   
5. Weak immune system. Your immune system can be affected too, which could make you more susceptible to illness. 
   
   
6. Fatigue. Financial stress can also cause fatigue and decreased energy levels. This may impact your relationships and work as you will not have the energy to give these areas your 100%. 
   
   
7. Substance abuse. For some individuals, it may also lead to an increased risk of substance abuse and addiction, such as alcohol or drug use. 

These physical symptoms may also be caused by other factors as well. If you are experiencing persistent physical symptoms, consult a healthcare professional for a proper diagnosis and treatment plan. Also consider speaking with a financial advisor who can help you deal with your financial issues. 

How can you reduce financial stress?

Reducing financial stress requires a combination of practical steps to address the problem head on and coping mechanisms that will help you deal with the problem better. Here are some ways to do it:

1. Create a budget. It can help you map out your income and expenses and identify areas where you can cut back. Aside from that, it will allow you to feel more in control of their finances and reduce your anxiety. 
   
   
2. Reduce debt. This requires a clear and strategic approach to pay your debt while leaving enough money for your other needs. You can, for example, make extra payments, negotiate lower interest rates, or consolidate your debt. 
   
   
3. Build an emergency fund. This will provide a safety net and allow you to avoid stress caused by unexpected expenses. Financial experts recommend having an emergency fund that will cover your living expenses for at least three to six months. 
   
   
4. Prioritize savings. Building a savings habit can help you feel more secure about your financial future. Set aside a portion of your paycheck for savings and prioritize it over discretionary spending. 
   
   
5. Get insured. It also helps to get insurance for people and things you wish to protect. Doing so will help keep your savings intact in case of an emergency. Critical health insurance, for example, can cover your medical expenses, while car insurance can take care of vehicle repairs. 
   
   
6. Seek professional advice. A financial advisor or therapist can guide and support you in managing financial stress. A financial advisor can help you create a budget, reduce debt, and plan for your financial future. A therapist, meanwhile, can help you manage the emotional and mental health impact of financial stress. 
   
   
7. Practice mindfulness and self-care. Also take care of your mental and physical health through exercise, meditation, or therapy. If you are anxious about the future, practicing mindfulness can help you focus on the present moment and reduce your anxiety. 

If you're financially stressed at the moment, the good news is you have many options at hand to help you deal with it more effectively. Know you can game plan your finances. Get started by speaking with an AXA Philippines financial advisor online today!

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