Why 42% of Americans say they experience stress and anxiety about money

Carmen Reinicke -

A host of financial worries have taken their toll on Americans' pocketbooks and mental health, from high inflation and failing markets to general economic uncertainty.

42% of American adults say money has a negative impact on their mental health, according to a Bankrate survey.

The study included nearly 2,500 American adults and was conducted between April 6 and 8.

[Elon Musk forces his employees to return to the office.

Will they be more creative and efficient than at home?]

Of those who said money has affected their mental health, the majority cited feeling stressed, anxious and overwhelmed.

Nearly half said looking at their bank account is a trigger, while others said paying a bill, making a purchase or having to talk about money makes them anxious.

Supermarket in San Francisco, Calif., on Monday, May 2, 2022. David Paul Morris/Bloomberg via Getty Images

"When people are experiencing or dealing with money problems, there is a huge potential for stress," said Mark Hamrick, senior economic analyst at Bankrate.

The study also found that 28% of those who disclosed that money has a negative impact on their mental health worry about it on a daily basis.

This is what financial experts believe can help.

manage anxiety

When faced with difficult financial situations, it's important to consider what's within your control and what's not, according to Preston Cherry, a certified financial planner, certified financial therapist, and founder of Concurrent Financial Planning in Green Bay, Wisconsin.

“We can't control things like inflation, war, market cycles, or business cycles.

Those things are going to happen.

Uncertainty is certain,” he recalled.

[Airlines cancel hundreds of flights before summer due to staff shortages.

They are looking for 12,000 pilots for this year]

Knowing this can help people shake off some of the guilt and shame of financial problems and better process what's going on in the environment.

"That allows us to think about what we can do about it to get ahead," he said.

Where to set the budget

One of the problems people face with inflation affecting so many sectors is that it's unavoidable, according to Jason Steeno, president of CoreCap Advisors & CoreCap Investments in Southfield, Michigan.

It is almost a situation in which you have to “smile and bear it”.

But to make sure you're not overspending, it's a good time to check that your monthly budget is enough to meet your needs, according to Katie Nixon, executive vice president and chief investment officer of Northern Trust's wealth management business.

[Real estate agents received millionaire PPP loans.

The market skyrocketed and hardly anyone paid the money back]

"It's always a healthy thing, but even more so considering the pressure of inflation," he said.

“You have to make sure your budget accommodates the fact that your needs have gotten more expensive,” she suggested.

Thousands of families in the US face inflation by cutting non-essential expenses

June 1, 202202:30

Keeping spending within your budget may mean cutting out extras like entertainment, travel, or dining out.

Many Americans have already made those cuts.

Experts also recommend building up savings for emergencies, if you can, and paying down debt, especially high-interest credit card debt.

This will help you improve your financial situation for whatever comes.

In general, advisers suggest that your emergency fund should have three to six months of living expenses.

[The Biden administration admits it was wrong in assessing the risk of inflation]

“It's a good idea to have a cushion of cash to have a buffer against any big swings in the pendulum,” Cherry suggested.

The cycles follow

It's also important for Americans to keep in mind that business cycles are just that: cyclical.

Better times may come.

“Our view is that we have seen at or near peak inflation, and that is good news.

A lot of damage has been done, but it may be coming to an end,” Nixon said.

[Buyers consider making sacrifices to get a home.

This is what they are doing]

Still, he suggests that people keep watching their cash inflows and outflows in the coming months, as prices are likely to remain elevated even as inflation cools.

"It doesn't mean we're going back to 2% in the next year or so, but it does mean we're coming out of these high levels," Nixon said.

This article is part of the 

.