42% of Americans say money has a negative impact on mental health

A supermarket in Washington, DC, on May 26, 2022.

Nicholas Kamm | AFP | fake images

A host of financial concerns have taken a toll on Americans’ wallets and mental health, from high inflation and choppy markets to general economic uncertainty.

Some 42% of American adults said money has a negative impact on their mental health, according to a Bankrate survey. The study included nearly 2,500 American adults and was conducted between April 6 and 8.

Of those who said that money has affected their mental health, the majority mentioned feeling stressed, anxious and overwhelmed. Nearly half said looking at their bank account is a trigger, while others said paying a bill, making a purchase or having to talk about money makes them anxious.

“When people have money problems or are working through money problems, there is tremendous potential for stress,” said Mark Hamrick, senior economic analyst at Bankrate. The study also found that 28% of those who said money has a negative impact on their mental health worry about it on a daily basis.

Here’s what financial experts say can help.

anxiety management

When you’re facing tough financial environments, it’s important to consider what’s in your control and what’s not, according to Preston Cherry, certified financial planner, certified financial therapist, and founder of Concurrent Financial Planning in Green Bay, Wisconsin.

“We can’t control things like inflation, war, market cycles or business cycles, those things are going to happen,” he said. “The uncertainty is certain.”

More from Invest in You:
Choose a health plan that fits your budget and your life
3 Ways Retirees Can Better Cope With Inflation
How to buy more than $10K in government bonds I

Knowing that can help people take off some of the guilt and shame over financial conflicts and better process what’s going on in the environment, he said.

“That allows us to think about what we can do about it to achieve it,” he said.

Where to set your budget

One of the problems people face with the inflation now affecting so many sectors is that it’s unavoidable, said Jason Steeno, president of CoreCap Advisors & CoreCap Investments in Southfield, Michigan.

“It’s almost a smile-and-bear kind of situation,” he said.

However, to make sure you’re not consistently overspending, now is a good time to check that your monthly budget is enough to meet your needs, according to Katie Nixon, executive vice president and chief investment officer for the wealth management business at Northern. Trust.

“It’s always a healthy thing, but more so given inflationary pressures,” he said. “You have to make sure your budget accommodates the fact that your needs have become more expensive.”

Keeping expenses within your budget may mean cutting back on certain extra things, like entertainment, travel, or dining out. Many Americans have already made those cuts.

Experts also recommend building up emergency savings, if possible, and paying down debt, especially high-interest credit card debt. Doing this will help improve your financial situation for whatever comes next.

In general, advisers suggest that your emergency fund should have between three and six months of living expenses.

“You want to have a cushion of cash to have a guardrail against any big swinging pendulum,” Cherry said.

cycles happen

It’s also important for Americans to keep in mind that business cycles are just that: cyclical. There may be better times ahead.

“Our view is that we’ve seen inflation at or near peak, and that’s good news,” Nixon said. “A lot of damage has been done, but it may be coming to an end.”

Still, he suggests that people continue to watch their cash inflows and outflows in the coming months, as prices are likely to remain elevated even as inflation cools.

“It doesn’t mean we’re going back to 2% in the next year or so, but it does mean we’re coming out of these high levels,” Nixon said.

REGISTER: Money 101 is an 8-week learning course for financial freedom, delivered weekly to your inbox.. For the Spanish version Money 101, click here.

CHECK: 74-year-old retiree is now a model: ‘You don’t have to fade into the background’ with Acorns+CNBC

Disclosure: NBCUniversal and Comcast Ventures are investors in acorns.

Leave a Reply

Your email address will not be published.