Stress. We all feel it. Whether you have an upcoming job interview, a big life decision ahead, or simply are an Arsenal supporter, that feeling of anxiety and worry in the pit of your stomach is one that has a significant impact on your general wellbeing.

As April was National Stress Awareness Month, and Mental Health Awareness Week is coming up soon (15-21 May), we thought we would discuss a considerable source of stress that most people have to tackle every day and that in our years as financial professionals we have encountered countless times: financial stress.

Financial stress is usually centred around the feeling that you are not in control. Managing your finances can have moments of significant stress, but it is more often than not a constant underlying feeling of uncertainty towards the future. People often push this feeling down and accept it as ‘part of life’, but are unaware of the constant strain this can have on your mental health.

The charity Mind has depicted the connection between managing finances and mental health as a cycle: worrying about money impacts your mental health which subsequently makes it harder to manage your money leading to more money problems… and you’re back to the start. Stress can feel all-encompassing and it can seem almost impossible to break free from this cycle.

Two of the issues that The Stress Management Society has linked to increased stress is a lack of sleep and the feeling of being disorganised.

• Have you ever been kept up at night worrying about paying back your mortgage, or sending your kids to university, or the financial impact that losing your job could have on you and your family?
• Have you ever shied away from opening a letter from your bank because you have let the pile grow too big and you feel overwhelmed by the number of different documents you need to go through?

Both of these issues also fall into the stress cycle: Sleep deprivation is a significant cause of stress and as that pile of financial documents continues to grow, so do your stress levels.

So, how can you combat financial stress?

Mind has lots of useful information on changes you can make and actions you can take to reduce the underlying burden of financial uncertainty and the feeling of being out of control. This includes organising all your documents, regularly checking your bank balance, creating a budget and making a list of all your essential expenditure.

Acquiring the services of a professional is one way of taking significant action to combat the stress of managing your finances. Financial advisers can provide valuable support to people experiencing financial stress by offering guidance, knowledge and practical solutions.

Here are five ways financial advisers can help to significantly reduce financial stress:

1) Develop a Financial Plan

A financial adviser can help you develop a personalised financial plan tailored to your unique situation, goals and values. This plan can help prioritise expenses, identify risks and opportunities, and establish strategies to achieve long-term objectives. Having a financial plan in place can help reduce anxiety towards future financial security and provide a clear roadmap for achieving long-term goals. You will have the support of your adviser throughout this journey, keeping you on track and reassuring you when obstacles appear.

Permanent Wealth Partners’ Adam Walkom has outlined his review process here: “During our regular reviews we always discuss the trajectory of the current situation for each client. What does it look like in the future for you? The number of times I see clients physically relax at this point and brighten up as I re-assure them that they will be financially fine in retirement is amazing. It really is my favourite part of the work we do.”

2) Provide Financial Education

Many people experience financial stress because they lack the knowledge and skills to manage their finances effectively. A financial adviser can offer education and resources to help you better understand financial concepts, such as investing, budgeting, and debt management. Having a clearer understanding of finance management can help you make thoroughly informed decisions and feel more confident about your financial future.

Permanent Wealth Partners’ Adrian Johnson commented: “Often clients speak almost with a fear of sounding silly or uninformed. The first things that we do is break things down into small steps and talk clients through issues one at a time. I regularly receive feedback that this really helps alleviate their worries.”

3) Offer Investment Advice

Investing can be a complex and intimidating process, but it is also an effective way to grow wealth and achieve long-term financial goals. A financial adviser can provide you with investment advice, recommend strategies, and help build a diversified portfolio. By taking a disciplined and informed approach to investing, you can feel more confident about your financial future and reduce the stress associated with financial uncertainty.

4) Provide Debt Management Strategies

Debt can be a significant source of financial stress. UK charity, the Money and Mental Health Policy Institute, has highlighted the link between debt and mental health, with 46% of people in debt also suffering a mental health problem, amounting to 1.5 million people in England alone. A financial adviser can help you develop a debt management strategy that works for your distinct situation. Reducing this debt burden can play a significant role in improving a person’s financial health and help them feel more in control of their finances, reducing overall stress levels.

5) Offer Emotional Support

Finally, financial stress can take a toll on an individual’s mental health and well-being. A financial adviser can provide emotional support and guidance, helping you navigate the complex and sometimes overwhelming world of personal finance. As a companion throughout the financial journey, financial advisers can take a load off your back, helping manage your stress levels and maintain a positive outlook on your financial future.

Adam Walkom: “Unfortunately there have been a few times where we have had to deal with a death of a client and supporting their spouse. The saving grace is that even if the spouse was not involved in the financial planning at all, we can show them where all the investments and assets are and give them the security that everything is in hand.”

Stress can have a significant impact on your mental health, and finding ways to combat and diminish that feeling is crucial to your wellbeing. Financial stress is often ignored by people as being part of the everyday stresses of life and not as problematic as larger stressful life events. But a constant feeling of uncertainty and anxiety at the back of your mind can take a heavy toll on your overall mental wellbeing.

If you feel you could benefit by talking to a financial adviser about the stresses associated with managing your finances, or you just want to have a chat about any of the points raised in this article, please get in touch by booking a 15 minute call free of charge with one of our professional advisers.