Being raised by immigrant parents, we didn’t speak much about money growing up. In our culture, it was considered gauche, tacky and even frowned upon. And as an American living in the UK, I found that talk of money is even more hushed; a part of British sensibility to not verbalise but rather to keep calm and carry on with. However in today’s tough economy, especially as women, we need to talk more about money and personal finance: it’s an essential part of living, working and succeeding.
Whether you're paying your energy bill, doing your weekly shop or booking a well deserved holiday, everything feels pretty expensive lately. Rising costs for period products, raising children and home essentials are setting women back even further, known as the pink tax. With prices and interest rates increasing but wages and career progression stagnating, work can feel like more of an obligation than a choice, which can impact your motivation and mindset.
So as the cost of living crisis wages on for a third year, what toll is it taking on our mental health? Turns out, it's a big one.
New survey research from mental health app Calm found that financial woes are the top stressor for employees, with a concerning 59% of workers reporting increased worries and anxiety over money, 24% losing sleep over money-related stress and 52% of employees actively looking for a side hustle to make ends meet.
So with the majority of us worried about finances, we’re lifting the lid on money talk. We spoke to personal finance expert and founder of All Things Money Ola Majekodunmi for her advice on how to manage financial stress at work.
The mental impact of financial worry
Long gone are the days when a single earner’s salary could provide a 4-bedroom home, essentials, a car and even holidays for a family of four. In today’s economy, many Britons who want to have children feel it’s financially out of grasp and even DINKs (dual-income-no-kids) are needing to prioritise their funds and make choices between home ownership and preparing for retirement.
“Financial worry is a huge cause of stress for workers, especially now due to the ongoing cost of living crisis and the uncertainty that brings,” Ola tells AllBright. “From increasing food costs to interest rates, there is a lot of financial pressure which has caused a lot of stress amongst workers who are not gaining increases in pay to keep up with these rising costs. There have been redundancies and restructures within a lot of companies which adds to the stress workers are already feeling,” she said.
And as you’d expect, worrying at work has a direct impact on your productivity and performance, with an added layer of complexity that your pay comes from your work. “It’s been proven that financial stress can have an impact on productivity and focus at work,” said Ola, citing research which found that 20% of employees reported that financial stress hinders their work performance – costing the economy an estimated £120 billion. Plus, employees with money worries are twice as likely to be looking for a new job.
How to manage your financial stress at work
Given that money stress has wide reaching impacts both for the employee and their employer, what can we actually do about it? The first step is to get serious about personal finance.
“It’s crucial to be proactive about personal finances to improve overall financial wellbeing, which can have a huge impact on our mental health,” Ola said. “Having a healthy relationship with money allows us to feel in control of our finances, less anxious about money and more financially secure for the future.”
Ola shared her top 5 personal finance tips to manage your financial stress at work:
1. Run an audit of your accounts
Review all of your finances and accounts to get an understanding of your current financial position. It can be intimidating but it’s important to analyse your incomings and crucially your outgoings to get an accurate picture of your finances.
2. Budget, so you don’t fudge it
Draw up a monthly budget or write a financial plan to help you regain control of your finances. If you’ve never created a budget before, use a template or an online budget planner to detail your spending breakdown, build a savings plan and help you plan to pay down your debts.
3. Start talking money, honey
If you’re feeling financially anxious, feelings of shame or guilt can often make it worse. Reach out and confide in someone close to you, like a family member, friend, mentor or trusted colleague. You’ll feel less alone and have a listening ear and a fresh perspective on how to get a handle on your finances.
Opening up the conversation about money with people you trust can also help you work together to make sound financial choices, like learning about new high yield savings accounts or a promising investment opportunity.
4. Seek help from an expert
If your finances are particularly complicated or if you need more professional support, seek out a financial expert for guidance. There are also free, independent services available such as MoneyHelper and Citizens Advice.
5. Foster financial wellbeing at work
For senior leaders of organisations, build a culture of financial wellbeing in your workplace through 1:1 sessions with a trusted money expert or host a financial literacy workshop to create a safe space for your employees to speak about their money worries. Review your compensation and benefits policies and then make corrections or implement new policies where needed. Building support in the workplace is the first step to alleviating the mental health impacts that come with financial stress.
Disclaimer
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