Research released to mark National Stress Awareness Day yesterday reveals how the nation’s emotional relationship with personal finances is downright weird.
The findings counter intuitively show that the week the nation is most flush with cash is also the week the nation starts getting financially stressed, with nearly a quarter (24%) starting to have feelings of worry towards their bank balance the week right after payday. Extraordinarily, over one in seven (14%) cited payday itself as the day they begin to worry about their finances for the month ahead.
When it comes to revealing personal wealth, the nation is similarly emotionally eccentric, with nearly two fifths of us (39%) preferring to be caught by a stranger in an embarrassing situation such as having sex, falling over, or falling asleep in an important meeting rather than a stranger being privy to how much money is in our bank account. And it’s not just strangers we’re shy of talking truthfully to about our finances – more than three million Brits admit to having lied to a partner about how well-off they are in the last three years alone.
The study exploring the relationship between UK adults and their bank accounts was commissioned by Atom, the UK’s first digital bank, in association with charity The Stress Management Society.
Despite financial fear being a common cause of anxiety and stress-related health issues, more than a third (35%) of UK adults would rather do arduous household chores than spend time making a budget to help alleviate their money worries.
With 85% of people unaware of the exact amount that is in their current account at any given time, and over a third (34%) of people feeling stressed, worried, or anxious when thinking about budgeting, the UK appears to be in dire need of a new way of managing its money.
Atom and The Stress Management Society’s top 10 tips for reducing financial stress
- Don’t hide
The study found that people avoid checking their balance closer to payday, but it’s better not to avoid your finances. Becoming more aware of your balance and spending habits can help you stay in control and avoid financial problems before they get worse.
- Set a budget
We all know budgeting is a difficult task to stick to, but sitting down to go over your income and expenses can help lower your financial stress level. Ensure regular budget check-ups – this is essential.
- It’s all about priorities
Determine what your financial priorities are. Identifying them can help ease a tough financial situation – create an action plan.
- It’s the little things that count
Use ‘the snowball effect’ to make incremental changes to your day-to-day spending so you can tackle your financial priorities. Cut back on lattes or quit smoking and put the savings towards one small debt to get it paid off faster, and then repeat for others. Atom’s app will allow users to make alerts and goals tailored to their specific spending habits.
- Money buddy
Similar to a gym buddy, find a responsible and trusted friend that can help you follow your financial goals – helping you to stay accountable.
- Consider using cash
It may be old fashioned to pay with cash but people who pay by card are unconsciously willing to spend more and have less control over their spending – the emotional attachment to cash can help curb mindless spending.
- See an advisor
Set up an appointment with a financial advisor. Let them help you create the right path to your financial goals, whether that is to start investing, save more for retirement, or simply to define your aspirations.
- The fear of missing out
Social media can be a hugely influential platform that encourages a desire to live a wealthy lifestyle – fancy meals, expensive holidays and new cars – this can take a big toll on your financial stress. Stop comparing yourself to others. That picture/video is a magnified part of their life or may not even be true. Concentrate on yourself and gain control of your own situation.
- Turn the unknown into “knowns”
Knowledge is key with financial responsibility. If you want to save money but have no idea of where to start – do your research, attend local or online finance classes, or seek advice and support on the best financial options. The government’s Money Advice Service is a useful and free support resource.
- Stay positive
A negative attitude and perspective on your finances will do nothing but further your financial stress. Focus on the positive – keep a positive mental attitude – it can calm your fears and help you recognise your financial strengths, but if you are worried, you should ask for help.
