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The Hidden Link Between Financial Stress & Personal Well-Being

By Diane Amato

Published June 2, 2025 • 4 Min Read

TLDR

  • Financial worry is one of the most common stressors of modern life.

  • Like any form of stress, financial problems can take a toll on your mental and physical health.

  • Talking about your financial worries – with friends, strangers or a financial advisor – can bring perspective and help create a practical path forward.

No matter what stage of life you’re in, talking about money is rarely easy. Students, newcomers, couples, retirees, parents and those starting over all face different money challenges, but there’s one thing that’s common – talking about them can make all the difference. RBC’s new video series “The Drive” aims to make these real-life conversations more approachable, bringing everyday Canadians together, to share in the dialogue.

In this episode, Jesse Jones drives through Edmonton, Alberta, with three passengers who open up about their financial challenges, the support they’ve found and the coping strategies they use.

Financial worry is one of the most common sources of stress among Canadians today. Like any kind of stress, it can affect your mental and physical health, relationships and overall quality of life. It can impact your sleep, self-esteem and energy levels. For those already dealing with anxiety or depression, financial stress can make things even worse.

If this sounds familiar, here are five ways to ease financial stress, regain control and improve your well-being.

1. Talk about what you’re going through

Many Canadians opt to struggle with financial stress alone. Feelings of shame, guilt, or embarrassment often lead people to keep things bottled up. But consider this – nearly half of Canadians lose sleep over financial worries. If you’re feeling overwhelmed, you’re not alone.

One of the best ways to relieve financial stress is to talk about it. And you can talk to anyone – keeping things in can often make them seem bigger than they are. The person you confide in doesn’t need to have a solution. Just having someone listen without judgment can be a relief.

Consider this too: some people find it easier to talk to a stranger than to someone they know. If that sounds like you, think about reaching out to a therapist or counsellor. On the practical side, a financial advisor or credit counsellor can help you work through challenges and create a plan.

2. Take stock of your situation

When money stress feels overwhelming, it’s tempting to ignore bills or avoid credit card statements. But to move forward, it’s important to get clear on where you stand. Here are some steps to take:

  • Open any ignored bills or statements and add up what you owe.

  • List your income sources, including your job, government benefits and any side gigs.

  • Track your spending to identify essentials and discretionary expenses.

  • Recognize spending triggers. For example, do you shop impulsively when you’re stressed?

3. Make a plan

Once you understand your situation, identify the root of the problem. Are you carrying too much debt? Are your fixed expenses too high for your income? Are you overspending on non-essentials? Or is it a mix of issues?

A plan can help you tackle each challenge. Consider:

  • Restructuring debt, such as consolidating high-interest credit card balances into a lower-interest loan or line of credit.

  • Reducing or eliminating a car payment.

  • Downsizing to cut living expenses.

  • Increasing your income through overtime, extra shifts, or a side gig.

  • Creating a budget that supports your plan and keeps you on track.

4. Celebrate wins and keep moving forward

Nobody’s perfect. If you hit a setback, don’t let it derail your progress. Get back on track and keep going. At the same time, celebrate your wins – whether it’s paying off a credit card or sticking to your budget for a month. Recognizing progress can help you stay motivated.

5. Take care of yourself

It might take time to reach a place where you feel financially confident. In the meantime, don’t ignore the stress. Prioritize sleep, exercise, and healthy eating – these are essential for both mental and physical health. And keep the conversation going. Talking about financial stress is the first step toward overcoming it.

Get more tips on how to handle financial stress here. 

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Topics:

Managing Money Personal Finance Physical and Mental Health