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Between inflation eating into paychecks and high interest rates making debt harder to manage, money stress is hitting a lot of Americans hard right now. According to a recent Pew Research Center survey, about 40% of Americans say they’re in only fair financial shape currently, while about 17% say they’re in poor financial shape. And, while those statistics are troubling enough, 28% also expect their financial situation to be worse a year from now, up significantly from 16% in May 2024.
But while a lot of people are feeling the pressure, the weight that comes with worrying about your finances can be crushing, especially when the solutions you’re considering require money or time that you can’t spare. The truth is, though, that traditional financial advice often misses the mark when you’re already struggling. Reducing financial stress isn’t just about having more money or time, after all. It’s also about taking back control.
And while you can’t control everything, like the state of the economy or Fed rate hikes, you can take small but meaningful steps to get things back on track. Below, we’ll detail a few ways you can get started today.
Find out how you can start tackling your high-rate debt today.
5 ways to reduce your financial stress right now
Taking one or more of these steps could help alleviate the pressure on your finances and help you get things back on track:
Build a basic spending plan
Budgeting might not sound like a cure for financial stress, but getting your income and expenses down on paper or in a budgeting app can be surprisingly empowering. A clear picture of where your money is going makes it easier to spot patterns, plug leaks and prioritize what matters.
You don’t need a spreadsheet filled with formulas to do this, either. Start simple: List your take-home pay and fixed expenses (housing, insurance and loan payments). Then look at your variable spending — things like groceries, subscriptions and takeout — and see where there’s room to cut back or reallocate.
Even a small shift, like canceling a $15 streaming service or eating out one less time per week, can free up funds you can redirect to savings or debt. More importantly, it creates forward momentum, and that can be powerful when you’re feeling stuck.
Learn about the debt relief options available to you now.
Set a small financial goal — and automate it
A major source of financial stress comes from feeling like you’re not making progress. That’s where goal setting comes in. Pick a goal that’s achievable in the short term, whether that’s saving $100, paying off a single credit card or building a $500 emergency cushion, and automate your way there.
Even $10 or $25 a week can add up quickly if it’s consistently stashed in a high-yield savings account. And, setting up automatic transfers removes the friction of decision-making and helps you prioritize your goal even when life gets busy.
Be honest about what you can’t control
Financial stress often stems from uncertainty, like things you might owe, expenses that might pop up or economic shifts that are totally out of your hands. But trying to plan for every unknown can be paralyzing. Instead, focus on what you can control and acknowledge what you can’t.
You might not be able to predict whether a recession will hit this year, but you can shore up your finances by paying down high-rate debt or trimming unnecessary expenses. You might not be able to stop a layoff, but you can start building a small emergency fund or updating your resume just in case. That mental shift of moving from fear-based thinking to action-oriented steps can drastically reduce your anxiety, even if your financial picture hasn’t changed yet.
Prioritize your most urgent debt
Debt is one of the most common sources of financial anxiety, and for good reason. With credit card APRs hovering above 21% on average, interest can rack up quickly and make balances feel unmanageable. So, if your debt is keeping you up at night, stop suffering in silence and start exploring your options.
Begin by focusing on the accounts that are costing you the most. That usually means prioritizing high-rate credit cards. And, if you can’t afford more than the minimums right now, consider a debt relief strategy that fits your situation. Some options to explore include:
Talk to someone about it
Financial stress thrives in silence. Many people feel shame about their situation, which keeps them from reaching out, but there are a lot of people who are dealing with similar issues right now, and getting another perspective can make a big difference.
You don’t have to share your numbers with the world, but consider opening up to a trusted friend, family member or financial counselor. Sometimes just saying, “I’m feeling really overwhelmed by money right now” is enough to start the process of relief.
And, if your financial stress is chronic or severe, a credit counseling agency or financial therapist can help you create a roadmap and tackle the emotional side of money stress.
The bottom line
Financial stress can feel suffocating, but it doesn’t have to be permanent. Small, intentional actions like tracking your spending, addressing your debt and talking to someone about your stress, and the options you have to address it, can help you regain control and reduce anxiety. And remember: You don’t have to do it all at once. Start with one step and build from there. The path to peace of mind may be closer than you think.
