What is the impacts of financial stress?
Some signs that financial stress is affecting your health and relationships include arguing with the people closest to you about money, difficulty sleeping, feeling angry or fearful, mood swings, tiredness, muscle pain, loss of appetite, lower sex drive and withdrawing from others.
The Relationship Between Financial Stress and Self-Esteem
Having financial troubles can take a major toll on your self-esteem. Financial stress and struggles with personal finance are commonly associated with psychological issues like depression and anxiety. But many people fail to realize the connection between financial stress and self-esteem as well.
The Symptoms
Financial stress can manifest in a variety of ways. On the physical level, people may feel drained, exhausted, and generally unwell due to the many decisions they have to make and the amount of time they have to dedicate to paying bills, doing taxes or organizing their finances. Experiencing this sort of financial stress can also lead to mood swings, poor mental health, and even self-destructive behavior.
On an emotional level, the effects of financial stress can be equally devastating. People may start to feel anxious and overwhelmed, anxious about their future and fearful about their ability to pay for necessities like food and housing. They may become more irritable and withdrawn, feeling ashamed and embarrassed about their lack of financial stability.
These feelings of insecurity can lead to a vicious cycle, with people feeling more and more helpless as their financial troubles mount. This can easily lead to feelings of low self-esteem, with people feeling inadequate and believing that they’re not worthy of success or financial independence.
The Causes
Financial stress can have a range of causes, from not earning enough money to outspending your budget. Regardless of the cause, financial stress can have a huge impact on your self-esteem. For many people, managing money is an important factor in feeling a sense of purpose and control in their lives. When they begin to struggle with their finances, they may feel helpless and as though they’ve lost this control.
In addition, many people feel ashamed or embarrassed when they find themselves unable to pay their bills or keep up with their finances. This sense of shame can be particularly acute for lower-income people and those who are living paycheck to paycheck, who may feel like they’ve failed in their efforts to provide for their families and make ends meet. This can lead to feelings of discouragement and hopelessness, further compounding their feelings of low self-esteem.
Examples
- A stay-at-home parent may feel inadequate if their partner’s salary does not cover all the family’s living expenses.
- A student may be burdened with college debt and feel embarrassed when they cannot pay their monthly bills.
- An elderly retiree may feel helpless when they realize they do not have enough savings to cover medical expenses.
The Effects
It can be difficult to break out of this cycle of financial stress and low self-esteem. The combination of feeling helpless and inadequate can lead to people making decisions that further exacerbate their financial problems, such as borrowing too much money or making impulsive purchases.
The ongoing stress from their financial struggles can also cause people to be less productive at work, leading to stalled career progression and further frustration. This in turn can lead to increased feelings of worthlessness and embarrassment, further undermining their self-esteem.
Next Steps
If you’re struggling with financial stress, there is hope of breaking out of this cycle of low self-esteem. The first step is to develop healthy habits, such as budgeting, tracking spending, and becoming more aware of your finances.
It’s also important to realize that financial troubles are something that affect many people and that you are not alone. By reaching out to support networks and seeking advice from those who have been in similar situations, you can start to build a sense of self-efficacy and empower yourself to take control of your finances and, in turn, your self-esteem.
Resources
Here are some resources that may help you further your understanding of the relationship between financial stress and self-esteem:
- The American Psychological Association: Money & Stress
- US News & World Report: How Financial Insecurity Hurts Your Mental Health
- Princeton University: Seven Ways to Reduce Financial Stress
- Federal Trade Commission: Coping with Financial Stress
