Dealing With Financial Stress
Financial stress can affect anyone, especially in times of uncertainty and change. When you’re concerned about money, you might feel anxious, depressed, hopeless, or angry. You can also experience physical symptoms such as headaches, insomnia, or fatigue. These feelings can interfere with your daily life, your relationships, and your well-being.
While feeling financial stress can be common and valid, it does not have to take over your life. What follows are some first steps you can take to cope and make a plan to improve your situation. You may want to consult a professional after you take these initial steps.
Acknowledge your feelings and ask for help
The first step is to admit that you are struggling. It’s not easy to stay positive about tough circumstances, and worry can be normal. You are not alone; many others face financial stress, and it’s important to talk to someone you trust so you can get perspective and find solutions.
If spending habits or stress about money is becoming overwhelming, you may want to consider seeking professional help — either from a financial planner, a debt counselor, or from a counselor or psychologist, Your employer may have an employee and family assistance program, or coverage for you to see a counsellor. Many publicly available mental health services are listed on the Nova Scotia Mental Health and Addictions Services website.
If you are struggling and believe you may be a danger to yourself or others, please contact the Mental Health Crisis line at 1–888–429–8167.
Make a realistic budget and track your spending
A realistic budget can help you plan your spending, save money, and reduce debt. You can use a spreadsheet, an app, or a notebook to create your budget and track your spending. There are also helpful online tools, like the Financial Consumer Agency of Canada’s Budget Planner and Financial Goal Calculator.
Prioritize your needs and reduce your wants
Another way to cope with financial stress is to identify your needs and reduce your wants. Needs are the essential things that you need to survive and function, such as food, shelter, utilities, and health care.
Wants are the things that you enjoy but can live without, such as entertainment and hobbies. It’s annoying to hear advice about avoiding small purchases like coffee or avocado toast as if that will make you wealthy, but when paying down debt, every little bit helps. It’s important to have some wants and small indulgences in your life, but you should not rank them over your needs.
Once you know what you’re spending your money on, identify your needs and wants, and prioritize your spending accordingly. For example, buying in bulk when you can, looking for local or second-hand deals, or borrowing from friends and libraries can help you save money for other needs. You can also take a close look at any recurring charges or subscriptions for services you don’t use often, and consider cancelling.
Seek financial education and advice
Learning more about financial products and options can help you improve your confidence with money, allowing you to make informed and responsible financial decisions. Financial advice can help you find solutions to problems like debt, taxes, or investments. You can find financial education and advice from books, podcasts, blogs, courses, or workshops — but be sure you trust the source and their qualifications.
It can also be tempting to look for ways to make a lot of money quickly, but it’s important to avoid scams. You can visit the Nova Scotia Securities Commission to learn about the risks of investing in trendy stocks, cryptocurrency or other schemes that promise a fast, large return. It’s also important to recognize that lotteries, sports betting, or online casinos are primarily for entertainment and are not effective or reliable ways to make money. You may want to talk to Nova Scotia Health if you feel you might have a problem with gambling.
Ultimately, you may decide to consult a qualified financial professional, such as a financial planner, a credit counsellor, or a federally-licensed insolvency trustee. Debt management agencies need to be licensed in Nova Scotia — a reputable agency should be able to provide you with their licensing information and many will not charge for your initial meeting.
