The link between financial stress and overall stress is well-documented. According to the Australian Psychological Society’s (APS’s) Stress and Wellbeing in Australia survey, 73% of Australians feel stressed about their financial situation, and 52% say money, in general, is a major stress factor.
Does this sound familiar to you? Take a moment to reflect on how money has been a source of stress in your life. How does it impact your mind, body, and relationships? Is this the lifestyle you want?
Understanding and addressing how we internalise financial stress can lead to significant, positive changes in our mental health.
The impact of stress on mental health
We can’t just “wish away” our money problems or magically increase our bank balances, but how we think about financial issues can greatly influence our daily experiences.
Research in cognitive behavioural therapy has shown that our thoughts shape our feelings, which then drive our behaviours. Negative thoughts can lead to negative emotions and actions.
Simply put, you become what you think.
By changing negative thoughts to more balanced and productive ones, we can foster positive feelings and behaviours. You might have held certain beliefs about yourself and money for years, making it seem difficult to change them.
The good news is that you can rewire your brain to think differently about money. Here’s how.
1. Stop negative thoughts
The stop-thought technique, used in cognitive behavioural therapy, involves recognising when you’re having a negative thought and replacing it with a more positive one. This shift can lead to better feelings and behaviours.
Try saying these sentences aloud and observe your feelings:
“I’m in trouble.” “I don’t have enough.” “I’m terrible with money.” “I hate myself for being in this position.”
Now, say these more positive statements and notice the difference:
“I’m resilient and have overcome every challenge.” “Here’s what I have today.” “This is difficult now, but I know it will change.” “This situation reminds me of my values and where I want to be.”
These positive statements won’t change your financial reality, but they can change your approach to the problem. A calmer, more positive mindset can open up new possibilities and solutions.
2. Acknowledge your feelings
Being vulnerable and acknowledging your feelings of hurt, isolation, sadness, anxiety, or depression can be challenging. However, naming your fears and owning your emotions allows you to express them honestly instead of denying their impact.
Think about how many people you know who struggle with money. How many openly discuss their issues?
Not talking about money stress can lead to negative emotions manifesting in other areas of your life, such as anger, blame, or unhealthy behaviours.
If you’ve avoided discussing money stress, where does this negative energy show up in your life?
3. Identify the problem
Solution-focused and narrative therapies suggest, “You are not the problem. The problem is the problem.”
Often, we see ourselves as the problem, which can lead to negative self-talk. By identifying the problem as separate from ourselves, we gain clarity and can address it more effectively.
For example, if you’ve struggled to save money, you might think, “I’m terrible at saving money. I’ll never get better.” Instead, name the issue as an external problem, such as the ‘expectations problem’ or the ‘not having enough problem’. Personify it as a colour, weather pattern, or character—like the Grey Blob, the Financial Storm Cloud, or the Money Phantom.
Notice the difference between saying, “I’m terrible at saving money,” and “The Money Phantom is robbing me of happiness, but I won’t let it.”
This approach shifts the blame away from yourself, freeing you from self-inflicted guilt and judgment.
4. Think ‘cup half-full’
As an experiment, try thinking in ‘cup half-full’ for a day.
For every negative thought about money, say the opposite. “I’m broke” becomes “Here’s what I do have.” “Today is terrible” becomes “What’s one small good thing today?”
These small changes won’t solve all your financial problems, but they can help you cope more effectively and positively.
5. Reframe your approach
Holding onto stress and anxiety affects your wellbeing and happiness. Is this how you want to live? Consider approaching money stress differently by owning your feelings and naming the problem instead of internalising it.
Using these techniques can help reframe your relationship with money. While they won’t solve all your financial issues, they can help you build resilience and navigate challenges more effectively.
Our team are passionate about helping clients explore their money stories. If you’re ready to change your financial life, reach out and schedule a free call with a Capital Partners adviser today.
