Americans are feeling the strain of the past few years of high prices and depleted savings accounts. A new survey from Talker Research, commissioned by banking app Chime, found that financial stress is causing some big impacts on Americans’ everyday health and well-being.
In fact, this survey found that the average American loses five nights of sleep per month because of worries about money. Money stress is also distorting Americans’ lives and causing stress in other surprising ways.
Does this sound like you? If you’re under financial stress, losing sleep about paying bills and managing debt, or just want to achieve a better level of financial security, here are a few good insights and tips to help your personal finances.
Americans can’t sleep because of money stress
The Chime and Talker Research survey found that the average American loses five nights of sleep per month because of financial stress, and 40% of Americans said that their mental health is negatively affected by their personal finances.
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Although the survey didn’t ask exactly why people are losing sleep over money, a big reason might be lack of emergency savings. The Chime survey also found that 35% of Americans wouldn’t be able to cover an unexpected $500 expense.
Payday is not always a “happy” day
Another surprising result from the Chime/Talker Research survey is that payday is not necessarily a happy occasion for many Americans. Although 29% of people surveyed said that their first emotion when receiving paychecks is “excitement,” 19% said they feel “stress” and another 19% said they feel “overwhelm.”
When people’s monthly budgets are getting stretched too far, payday can feel stressful, and 39% of Americans said they avoid social events during the leadup to payday. The survey also found that 59% of people feel “pay paralysis” — a feeling of anxiety and fear that they won’t have enough money between paydays.
Money is supposed to be fuel for your life. If you don’t have enough money to get to the next payday, it’s like running out of gas in your car. When your income doesn’t cover your bills, this can feel as if you can’t move forward in life or have confidence in your future.
How to fix your money stress and stop losing sleep
If you have nearly no money left in your checking account after paying bills each month and no safety net of emergency savings to fall back on, it’s understandably stressful. If you’re staying up late worrying about money, you’re not alone. But losing sleep can be bad for your health. If possible, it’s important to take proactive steps to improve your personal finances.
Here are a few quick tips that everyone should try — if you haven’t already — to overcome “pay paralysis” and stop losing sleep about money.
Use a budgeting app
Do you really know where every dollar of your monthly spending is going? The best budgeting apps can show you. You might find opportunities to cancel a few subscriptions or cut back on non-essential spending. Cook all your meals at home for a full month, pack lunches to take to work, and see how much you can save!
Open a high-yield savings account
Start building your emergency savings fund with one of the best savings accounts. Set up automatic transfers to move money to savings on every payday, or any day of the month. Start with as much as you can manage per month, even if it’s just $25 or $50. It feels incredibly empowering (and stress-relieving) to see the number in your bank account getting bigger, even if you start small.
Get free financial coaching
If you’re in serious financial trouble and at risk of missing payments on credit cards or other debts, you might need a higher level of help. Ask your bank or credit union if it offers financial advice to help you with budgeting and paying off debt. Or consider getting help from a nonprofit credit counseling service. Learn more at the National Foundation for Credit Counseling (nfcc.org).
Bottom line
Too many Americans are losing sleep about money — but there is hope. By using budgeting apps, opening a savings account (with automatic monthly transfers), and getting financial coaching or credit counseling if you need it, you can take control of your financial life and feel better about the future.
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