Financial stress

Understanding financial stress

Financial stress describes the pressure or worry you feel when your income falls short of your expenses. This can arise from various situations, such as job loss, unexpected bills, or debt. Financial stress can impact your mental health and emotional wellbeing, leading to feelings of anxiety, frustration, and helplessness.

Over the years, financial issues have consistently been one of the top causes of stress for Australians[1], and studies have suggested that more than half of Australians are only just making ends meet[2].  Experiencing cash flow problems, being in debt, or feeling worried about providing for your family can also impact your relationships with others. Below, we look at some causes and signs of financial stress and ways to get help.

• Causes of financial stress
• Signs you may be experiencing financial stress
• Getting help

Causes of financial stress

Here are some situations that can cause financial stress:

• Economic climate – the rising cost of living
• Unemployment, redundancy, or reduced hours at work
• Unstable income
• Being in debt or owing money
• Unexpected costs
• Health issues or illness (for you or as a carer)
• Supporting family members financially
• Investments that have not performed as expected
• Gambling problems
• Living beyond your means
• Significant life events – relationship ending, retiring
• Being in, or having left, a financially abusive

Signs you may be experiencing financial stress

Facing financial stress can make you constantly worry about your money situation. It might be harder to feel happy and optimistic, and you might even experience physical signs of stress. These reactions are normal during difficult financial times. Even though it feels tough right now, remember these feelings are temporary and won’t last forever.

Here are some common physical and mental health signs of financial stress: 

• Headaches and muscle tension
• Trouble sleeping
• Digestive issues
• Changes in appetite
• Feel anxious or constantly worried
• Feel stressed, tense, angry or irritable
• Feel guilty or ashamed
• Feel helpless or overwhelmed
• Low self-esteem.

When you are under financial stress you may:

• Find your housing security is affected. You may have trouble paying rent or the mortgage or have already had to move from your home.
• Be relying on unhealthy coping mechanisms, like substance abuse.
• Have late or overdue bills.
• Have credit debt or unpaid loans.
• Be overspending (using credit) to cope with the stress of financial concerns.
• Feel guilty when you do spend money.
• Find your relationship with friends and family strained.
• Be delaying much-needed healthcare – such as putting off getting mental health support or medical treatments due to cost or feelings of guilt.

Help is available

If you are experiencing financial stress, remember that blaming yourself isn’t helpful. Everyone can get into financial difficulty, and there are many ways to get help – at any stage.

Here are some organisations you can contact for support:

• National Debt Helpline for free financial counselling and self-help guides. Call 1800 007 007 on weekdays.
• Mob Strong Debt Help for free nationwide financial counselling for Aboriginal and Torres Strait Islander people. Call 1800 808 488 on weekdays.
• Money Smart has tips on managing your money, reducing debt, and urgent help if you’re in a crisis.
• Services Australia offers crisis and financial help if you are in severe financial hardship. The website also has housing assistance options if you are homeless, sleeping rough, or couch surfing.
• Talk to your financial institution. Australian banks have financial hardship teamswho can help with deferring, reducing or freezing loan repayments, offering payment plan options, consolidating loans, or deferring or providing a moratorium on debt collections.
• Many charities can help with bills and food vouchers, including the Salvation Army, St Vincent de Paul Society, and Food Bank.
• If your financial issues are related to gambling, contact the Gambling Helpline for free support on 1800 858 858.
• National Legal Aid has a directory of state and territory legal aid offices that can provide help with legal problems.

Here are some things you can do in the longer term to help you plan for the future:

• Budget and track your spending: Planning your spending can be stressful, but it will help you stay on top of things in the long term. Money Smart has a free budget planner template that allows you to calculate your income and expenses.
• Savings: If you can, putting away even a small amount for emergencies can help you feel less anxious and uncertain about the future. Setting up a recurring amount each month that goes into your savings account can help you stay on track.
• Avoid impulse buys: Set a spending limit on non-essential purchases and avoid impulse buys. If there is a non-essential you want to buy, see if you can wait a week before purchasing it. During this waiting period, you may find that you no longer want it. Keeping track of your spending and budget can also help.
• Set realistic goals: You won’t solve your money problems overnight, but you can set small achievable goals to get you on your way. A financial counsellor can also help you plan the steps to get you back on your feet.
• Manage the symptoms of financial stress: Feeling worried or anxious is normal when you are under financial stress. Unfortunately, if you don’t deal with the situation, it can have a negative impact on your relationships and mental health. Find healthy ways to manage your stress and talk to trusted family and friends about how you are feeling. Bottling things up will only add to your stress. If you want to talk to a professional about your mental health, a GP, counsellor, or psychologist can help. The Lifeline Service Finder can help you find free or low-cost health services.

If you need to talk, give one of our MensLine Australia counsellors a call on 1300 78 99 78 or click on the floating chat button on the right for online counselling. Our service is free and available 24/7.

If it is an emergency, please call 000.

[1] Australian Psychological Society Stress and wellbeing in Australia survey 2015 https://psychology.org.au/getmedia/ae32e645-a4f0-4f7c-b3ce-dfd83237c281/stress-wellbeing-survey.pdf

[2] University of Melbourne https://pursuit.unimelb.edu.au/articles/more-than-half-of-australians-are-only-just-making-ends-meet