Many of us are feeling the weight of financial stress right now. With Donald Trump’s tariff war triggering ongoing volatility in the stock market, pension pots being put under pressure and the cost of living crisis continuing to bite, economic uncertainty is taking its toll on many people’s mental wellbeing.
A report by the Mental Health Foundation found that one in 10 (10%) of UK adults currently feel hopeless about their financial circumstances, while more than one-third (34%) feel anxious, and almost three in ten (29%) have felt stressed about money in the past month.
In response to the seemingly relentless news cycle of recent years, financial anxiety has emerged as a newly minted wellness buzzword, with psychologists warning that money worries can significantly contribute to mental health issues like depression, anxiety and insomnia.
While changes to our financial security might not always be in our control, experts say we can manage how we react to periods of economic uncertainty, helping to ease chronic feelings of panic and stress.
Here are some expert-approved tips for feeling in control of your financial position, whatever the economic future holds.
1. Limit your exposure to market noise
Whether you’ve invested money in shares or your pension is affected by dramatic swings in the stock market, there’s no scarier sight than seeing your hard-earned savings dwindling by the day.
“It’s tempting to stay glued to the financial news when things feel volatile, but doomscrolling fuels the anxiety cycle,” says BACP accredited therapist Chloe Goddard-McLoughlin at Ranmore Therapy. “Instead, set healthy boundaries by choosing a reliable source for your news and checking the headlines just once a day.
“The most important thing is to resist the urge to compulsively check, as this can keep your nervous system in an anxious ‘flight or fight’ state.”
2. Try deep breathing techniques to calm your mind
When financial stress kicks in, our bodies respond as if we’re under threat, causing our breathing to quicken and shallow. Studies have found that consciously lengthening your inhales and exhales is a surprisingly effective way of nudging your body out of its anxious ‘fight or flight’ mode and into a relaxed ‘rest and digest’ state.
“Deep breathing is a grounding technique that can activate the body’s natural inbuilt soothing system, helping you to think more clearly,” says Goddard-McLoughlin.
Next time you’re stressed, try the 4-4-4 breathing technique: a simple yogic exercise that’s easy to learn and repeat. Also known as ‘box breathing’, the method involves breathing in a round, silently counting as you inhale for four, hold for four and exhale for four.
3. Clarify your worries
When your financial outlook feels rocky, negative thoughts can quickly spiral, causing you to panic over future outcomes that may not even happen.
To help put your fears in context, BACP registered therapist Georgina Sturmer advises writing down your anxieties, so you can better understand what’s real and what’s imagined.
“Are you worries rational and based on what’s actually happening in the moment?,” she asks. “If not, then it could be that you are catastrophising, or allowing other anxieties to creep in. If that’s the case, then focus on the facts of the matter, rather than being drawn into additional worries about other areas of your life.”
Writing down your worries can help break the cycle of catastrophising, making potential problems feel more manageable. (Getty Images)
4. Take practical steps
Sometimes worry can be a useful emotion, as it motivates us to take action, which can help you to feel better prepared in a future crisis.
“Whether it’s creating a more detailed budget plan, developing a savings strategy for an emergency fund or making a plan to generate some extra income with side hustles, practicalities help us to feel more in control,” affirms Sturmer.
5. Switch off app notifications
“If you’ve invested money into the stock market recently, remember that trying to time the market is nearly impossible,” warns Ayesha Ofori, founder of female investment platform Propelle.
“Unless you have a crystal ball, you won’t perfectly predict the best moment to exit or re-enter. Investing should always be viewed as a long-term journey too, understanding that fluctuations happen.
“If you have made the decision to leave your investments in the market long-term, checking your portfolio too frequently can trigger anxiety or knee-jerk reactions, so consider stepping back for a while and deleting your investment app. Just be sure to check back in once things have stabilised.”
6. Reach out for support
Money can be a taboo subject and asking for help can often be tough. “Anxiety can build when we feel isolated, so consider reaching out to a trusted friend or relative,” suggests Sturmer. “You could also seek financial advice from the Citizens Advice Bureau, the Money Advice Trust or the National Debtline.”
If money worries are affecting your day-to-day mental health, then it’s may be useful to speak to your GP, who can recommend effective talking therapies and treatments.
The Samaritans helpline also offers confidential emotional support 24 hours a day, 7 days a week.
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