Half of Americans Say Money Issues Keep Them Up at Night

Financial stress can have a significant impact on our mental and physical well-being, including causing sleepless nights. A recent survey of 2,000 consumers from Achieve and Money.com found that nearly half of Americans struggled to fall or stay asleep due to financial worries. The survey also revealed that those with high levels of debt were more likely to experience sleeplessness, anxiety, and depression.

Jaelyn Vickery, a financial therapist based in Chicago, explains that the stress of dealing with debt or financial challenges can trigger our survival instincts, keeping our minds in a constant state of fight-or-flight. This constant worry can lead to anxiety, depression, headaches, muscle tension, and fatigue.

The survey also showed that feelings about debt play a significant role in sleep disturbances. People who felt their debt was unmanageable were more likely to experience regular sleep problems compared to those who felt their debt was under control. This highlights the psychological burden of debt rather than the actual amount owed.

Younger consumers, particularly Gen Z and millennials, reported higher levels of financial stress and sleep problems compared to older generations. This could be attributed to a variety of factors, including student loan debt, entry-level salaries, and the rising cost of living.

To combat anxiety and insomnia caused by financial stress, experts recommend taking control of your financial situation by creating a detailed overview of your assets, debts, and financial goals. Breaking down your financial goals into manageable tasks can help reduce feelings of overwhelm and build momentum towards financial stability.

Saving money, even while focusing on paying down debt, is crucial for creating a financial buffer and avoiding future debt accumulation. Using debt payoff strategies like the debt snowball or debt avalanche method can help prioritize which debts to pay off first. Debt consolidation may also be a useful tool for managing multiple debts, but it’s important to ensure consistent payments before consolidating.

Ultimately, learning to say no to unnecessary expenses and prioritizing financial well-being can lead to significant improvements in overall financial health. By taking control of your finances, setting achievable goals, and making mindful spending decisions, you can reduce financial stress and improve your quality of life.