Financial Stress, Inflation Anxiety: Navigating Economic Uncertainty for Mental Health

Financial stress can significantly impact mental health, with the majority of Americans 70 reporting feelings of anxiety about their finances in 2023. A major contributor to financial distress was inflation 59 of adults cited this as a key source of worry. Current economic conditions, particularly rising interest rates and increasing debt burdens, exacerbate these concerns.

Young people have been especially affected by the recent rise in inflation, with many experiencing stress over rising prices on essential goods like groceries and clothing. This sudden change has made it challenging to stick to budget plans and forced some individuals to reduce discretionary sping or postpone major purchases.

Debt management remns a significant source of anxiety for many Americans. Over half 54 expect to have credit card debt, with 74 anticipating balances ranging from $1,000-$10,000. The uncertnty surrounding future interest rate hikes and the pressure of inflation on debt repayment capacity adds to their stress.

The financial challenges aren't limited to those carrying consumer debt; students also face significant stress due to accumulating student loan debt 25 expect balances over $10,000. This financial strn has been linked to mental health issues such as anxiety and depression among borrowers.

To address the impact of economic uncertnty on individuals' well-being:

1. Enhance Financial Literacy: Gning knowledge about personal finance can empower you to make proactive decisions regarding sping, saving, and debt management. Start by understanding budgeting basics or exploring how inflation affects your financial goals.

2. Build an Emergency Fund: Starting small even $50 a month can help provide financial security when unexpected expenses arise. m for 3-6 months' worth of living expenses in your emergency fund to mitigate future stress.

3. Create and Stick to a Budget: With prices rising, it's essential to track where your money goes each month. This practice will not only assist you in managing costs but also in identifying areas for potential savings or reallocation.

4. Explore Debt Consolidation: Consider consolidating high-interest debts into one lower-rate loan, potentially reducing monthly payments and saving on interest costs over time. Check if your employer offers benefits like student loan repayment assistance programs before seeking external options.

By taking these steps, individuals can better manage financial stress, secure their future, and improve overall mental health during uncertn economic times.

To monitor your retirement savings progress:

1. Log in to Your Retirement Account: Regularly check the status of your contributions, balances, and investment performance.

2. Utilize MyOrangeMoney: Analyze how small changes today could impact your financial security for tomorrow by considering different savings strategies or reallocating funds within your portfolio.

, while it's impossible to predict economic futures accurately, taking proactive steps now can significantly alleviate future worries about finances.

This information is provided by Voya Insurance Annuity Company Voya for educational purposes only and should not be considered tax or legal advice. Consult a tax professional or attorney before making financial decisions.

Products and services offered through the Voya family of companies.

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