6 Remedies for Financial Stress

By Robyn Kurdek | Published on October 21, 2025

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Americans are a stressed-out bunch. The primary source? Money.

According to the 2023 Stress in America report from the American Psychological Association (APA), about 50% of Americans said financial problems were a major source of anxiety — so much so that they felt “consumed” by their money worries. That stress isn’t limited to retirees or families putting their kids through college, either: more than 80% of young adults also listed financial issues as a top source of stress.

It’s no wonder we’re plagued with financial worries. About four in 10 American adults reported not having enough money in a bank account to cover an unexpected $1000 expense, according to a recent BankRate study. And around 78% of US adults currently live paycheck to paycheck.

The prevalence of student debt in America doesn’t help. As of 2024, more than 43 million U.S. citizens currently have education loans. For many, that means burdensome monthly payments that eat away at borrowers’ bottom lines and make it difficult to get ahead.

All this financial stress comes with a steep price: we’re paying for it with our physical and mental health. Here are five of the most common health effects of financial stress, along with six tips to help you stress less while taking control of your personal finances — and your life.

How Financial Stress Affects Your Health

Poor financial health correlates with poor physical health: 38% of Americans say they or someone they know has skipped preventative healthcare visits due to cost, according to a 2022 Gallup survey. (That’s up from 33% in 2019, likely due to inflation.)

Mental health and financial stress are strongly linked, too. For example, nearly half of all people with debt report poor sleep due to financial stress. Another third reported having a mental health problem such as anxiety or depression.

“Research shows that people with high levels of debt have higher rates of depression,” said Anne Brennan Malec, PsyD, LMFT, a financial therapist and founder of Symmetry Counseling in Chicago, in an interview with Earnest.

Stressing about your finances can also make you physically ill. Any type of prolonged stress, including financial strain, creates a constant “fight or flight” response in the body. That wreaks havoc on your immune system, making you vulnerable to disease.

How to Deal with Financial Stress

Stressing about your finances won’t solve your money issues. But being proactive about getting to the root of your worries and addressing them can help. Here are six ways to get your finances on track and position yourself for a stress-free financial future.

Create a spending plan and stick to it

Having a monthly budget or spending plan is one of the best ways to take control of your money and stop the cycle of worry. A spending plan lets you decide when and how you spend your money. It also ensures that you’re able to cover “must-haves” — fixed expenses like housing, food, utilities, and healthcare — while also working toward paying off debt and building your savings.

“It may mean sacrificing elsewhere, but you have to spend less than you earn to get ahead,” explained Jennifer Dunkle, a Colorado-based licensed professional counselor, in an interview with Earnest. That said, having a spending plan doesn’t mean foregoing fun. “Remember to leave room for things you enjoy,” Dunkle added. It’s important to make a savings plan that feels sustainable. If your budget is oppressively Spartan, it will likely be impossible to stick to — and could even result in spending “binges” when you get fed up with the overly strict restrictions.

Eliminate debt

If debt is keeping you up at night, take steps to get rid of it. First, tally up all your debts — including credit card debt, student loans, and car loans — to determine exactly what you’re dealing with. Then, pay it off using the “debt snowball” method: Pay off the smallest balance first. Once that debt account is closed and done with, put the same payment amount toward your next smallest debt as an additional monthly payment until this debt is paid off, too. Continue that way until you’ve paid it all off.

Stick with your debt repayment plan, even when the going gets tough: Being debt-free can significantly reduce your financial stress and help you reach your long-term financial goals.

Build an emergency fund

An emergency fund is a safety net to help you cover financial mishaps or unexpected expenses, such as a large medical bill, surprise car repair, or unexpected job loss. Having an emergency fund can reduce your stress because it provides a financial buffer. In addition to giving you peace of mind, it can protect you against having to borrow money ( often at high interest rates) to pay for an unanticipated expense.

How much should you save in your emergency fund? Most financial advisors recommend setting aside enough to cover three to six months of living expenses. You may want to save even more if you have a family and children, if you have less stable employment, or if you earn a variable income.

Building up your emergency fund may seem daunting at first, especially if you’re feeling strapped for cash. But it’s important to remember that every little bit helps: whether it’s $10 or $100, putting aside a little each month adds up over time. You could also consider selling unused items on Facebook Marketplace or EBay, consigning clothes at a resale store or on Poshmark, or socking away your next tax refund to help pad your savings account even faster.

Boost your income

Want to get rid of financial stress? Make more money! Consider doing something you enjoy to make a little extra cash in your spare time. More than half of Americans have a side hustle, according to a MarketWatch survey. Some drive for Uber or Lyft, deliver groceries for Instacart or DoorDash, sell art on Etsy, or do freelance work.

There are also ways to create passive income streams. Consider starting your YouTube empire, leveraging your photography talents by uploading images to a stock site that offers royalties, or creating an online course through Udemy or Teachable.

Get some help

If you’re really struggling with financial stress, seek outside help. Consider taking a class on basic money management skills, or meeting with a financial advisor or planner. A professional advisor can help you create a financial plan, make informed financial decisions, and get on top of your debt. In just a few sessions, your financial planner can also help you create a long-term savings and investing strategy, too.

Also be sure to take care of your mental health. A financial therapist can serve as a sounding board and help you manage any mental health issues related to financial stress. If you’re struggling with anxiety or depression, you may also want to see a psychologist, psychiatrist, or other certified mental health professional. A licensed therapist can help you develop healthy coping tools while you chip away at your money problems.

By decreasing financial stress, you can increase your confidence that you are in control of your finances — not the other way around. No matter your age or financial situation, you have what it takes to make the changes necessary to improve your mental, physical, and fiscal well being.

Refinance your student loans

Many Americans struggle with high interest rates on their student debt. If that sounds like you, refinancing could offer some relief. When you refinance your student loans, you’ll have the opportunity to select a new loan servicer, a new loan term, and even a new interest rate. If you’re able to lengthen your loan term or secure a lower interest rate, you could dramatically lower your monthly payment.

Better yet: if you qualify for a lower interest rate, you’ll also pay less in interest charges over the life of your loan. That can free up more money to put toward your principal every month, which can help you get out of debt faster.

At Earnest, we understand that student loan worries can have serious negative impacts on your health and quality of life. That’s why we do everything we can to reduce money stress and make the repayment process as streamlined as possible. We let all borrowers skip one payment per year without penalty. And we never charge fees of any kind. Ready to see how much you could save? Use our free student loan refinancing calculator to figure out whether refinancing is right for you.

About the Author

Robyn Kurdek

Robyn Kurdek is a financial writer with more than two decades of financial and investment industry experience. Her areas of specialty include defined contribution retirement plans (i.e., 401ks) and personal finance.