{"id":21377,"date":"2025-12-04T10:17:00","date_gmt":"2025-12-04T16:17:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=21377"},"modified":"2026-02-03T17:20:02","modified_gmt":"2026-02-03T23:20:02","slug":"how-to-deal-with-financial-stress","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-to-deal-with-financial-stress\/","title":{"rendered":"How to deal with financial stress"},"content":{"rendered":"\n<p>If money worries keep you up at night, you\u2019re not alone. More than 8 in 10 people said they experience stress about money, according to NerdWallet\u2019s <a href=\"https:\/\/www.nerdwallet.com\/article\/finance\/2024-financial-angst-report\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><em>2024 Financial Angst Report<\/em><\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"res-vid_container\"><iframe loading=\"lazy\" title=\"How to deal with financial stress\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/xxM396bSz-k?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<div class=\"wp-block-cgb-block-mcd-modal\"><button class=\"js-modal mcd-modal-button\" data-modal-prefix-class=\"mcd-animated\" data-modal-content-id=\"modal_id_1\" data-modal-close-text=\"Close\" data-modal-close-title=\"Close Modal\" aria-haspopup=\"dialog\">View Transcript<\/button><div id=\"modal_id_1\" class=\"mcd-modal-hidden\"><h5 class=\"mcd-modal-title\">Transcript<\/h5><p class=\"mcd-modal-content\">Feeling stressed about your finances? You\u2019re not alone. Money can feel overwhelming.<br\/><br\/>So how can you start tackling financial stress? Step one is having a budget. By keeping track of where your money\u2019s going, you put yourself in control.<br\/><br\/>Try the 50-20-30 rule. Put 50% toward needs like housing, food, and bills. Set aside 20% for paying down debt and adding to savings, like your emergency fund. And use the last 30% for fun, discretionary stuff.<br\/><br\/>Another way to reduce financial stress is to make a plan to conquer your debt. From student loans and mortgages to credit card debt, it can all feel like a mountain\u2014but you don\u2019t have to climb it all at once.<br\/><br\/>There are two main ways to tackle debt.<br\/><br\/>One is the debt avalanche method, where you pay off high-interest debt first to save money over time.<br\/><br\/>There\u2019s also the debt snowball method. Pay off your smallest debts first to rack up some quick wins and build momentum.<br\/><br\/>Money stress doesn\u2019t disappear overnight\u2014but small, smart changes can make a big difference.<\/p><\/div><\/div>\n\n\n\n<p>The sources of financial anxiety vary. Some people fret over having unmanageable levels of debt, while others fear losing their jobs or not having enough money to retire. Still, many of us share a sense of growing unease about covering everyday living expenses. According to the report, 50% of respondents cited food costs as a major stressor, while 40% pointed to housing expenses as a top financial worry.<\/p>\n\n\n\n<p>Rising costs are reshaping the way people think about money, according to Traci Williams, a certified financial therapist. \u201cThere\u2019s a shift from what they thought their life would look like at this stage to what it\u2019s turning out to be,\u201d she explains.<\/p>\n\n\n\n<p>Many of us are asking, how do I reduce my stress about finances? While you can\u2019t control everything, there\u2019s plenty you can do to take charge of your financial situation. Here are seven concrete tips for overcoming financial stress through better control of your money.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-change-your-money-mindset\">Change your money mindset<\/h2>\n\n\n\n<p>Early experiences often shape our emotions about money, Williams says. \u201cIf your parents struggled with money, you might feel like you need to save extra to make up for that,\u201d she says. \u201cOn the other hand, you might feel like you need to spend a lot because you couldn\u2019t when you were growing up.\u201d<\/p>\n\n\n\n<p>Another common pitfall? Feeling like there\u2019s something wrong with you because you can\u2019t make ends meet, even though you earn a good income. \u201cAbout half of people who make $100,000 or more each year are living paycheck to paycheck,\u201d according to Williams. \u201cMoney isn\u2019t <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/what-is-loud-budgeting\/\" target=\"_blank\" rel=\"noreferrer noopener\">something we openly discuss<\/a>, so it can feel isolating\u2014but what you\u2019re experiencing is quite normal.\u201d<br><br>The key is acknowledging your emotions about money, not burying them. \u201cJust allowing yourself to feel them can be helpful,\u201d Williams says. And don\u2019t forget to focus on gratitude for what you do have. \u201cWhen you\u2019re stressed, it\u2019s easy to fall into negativity,\u201d she adds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-build-a-smarter-budget\">Build a smarter budget <\/h2>\n\n\n\n<p>You can\u2019t fix what you don\u2019t understand\u2014and that\u2019s where a budget comes in. It\u2019s one of the easiest ways to figure out how to deal with financial stress because it gives you a clear path to follow.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2120\" height=\"870\" src=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE.jpg\" alt=\"Two young women work on laptops at a long table in a library.\" class=\"wp-image-22623\" srcset=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE.jpg 2120w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE-300x123.jpg 300w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE-780x320.jpg 780w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE-768x315.jpg 768w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE-1536x630.jpg 1536w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2025\/12\/BK-102-102-Fianncial-Stress-INARTICLE-2048x840.jpg 2048w\" sizes=\"auto, (max-width: 2120px) 100vw, 2120px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/budgeting-with-the-50-20-30-rule\" target=\"_blank\" rel=\"noreferrer noopener\">50-20-30 rule<\/a> is a simple way to begin. First, list all your sources of monthly income. Then, allocate 50% of this amount to the things you need, like rent, groceries, and utilities. Next, set aside 20% to pay off debt and increase your savings. Finally, use the remaining 30% for discretionary expenses, like entertainment, dining out, and hobbies.<\/p>\n\n\n\n<p>You can adjust these percentages as needed. But be honest with yourself. One of the <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/are-you-making-these-4-common-budgeting-mistakes\/\" target=\"_blank\" rel=\"noreferrer noopener\">biggest budgeting mistakes<\/a> people make is underestimating how much they spend. \u201cOnline shopping and meal delivery services are two of the biggest culprits,\u201d Williams says. \u201cIt\u2019s easy to spend small amounts here and there without realizing how much it adds up.\u201d<\/p>\n\n\n\n<p>And don\u2019t just focus on cutting expenses. You should also look for simple ways to make your money work harder. For instance, you might be surprised at how you can <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/7-ways-to-save-money-with-your-checking-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">save money with your checking account<\/a>, especially one that offers cash back on purchases you need to make anyway.<\/p>\n\n\n\n<p>Managing your money should feel less overwhelming when you know where it\u2019s going. \u201cJust having a plan can help you feel more in control,\u201d Williams explains. \u201cYou might discover you need a side hustle to make ends meet. You also might find you already make enough money for your needs, but you just haven\u2019t been tracking your spending closely.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-pay-down-debt\">Pay down debt<\/h2>\n\n\n\n<p>Debt can feel like a heavy load, but dealing with it systematically can make it easier to carry. Start by understanding the full scope of your debt\u2014list all your balances, including credit cards, student loans, personal loans, and home mortgages.<\/p>\n\n\n\n<p>Then, dig into the details: How much interest are you paying? How much do you need to pay each month? And how long will it take to pay it off? \u201cMany people who have debt don\u2019t understand it,\u201d Williams says. \u201cIt\u2019s important to see the complete picture.\u201d<\/p>\n\n\n\n<p>Prioritize paying off high-interest debt, like credit cards. Once you knock out those balances, you can move on to lower-interest debt. This approach is called the <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-to-get-out-of-debt\/\" target=\"_blank\" rel=\"noreferrer noopener\">debt avalanche method<\/a>. But if you need extra motivation, a different strategy might work better: The debt snowball method works by paying off smaller debts first\u2014no matter the interest rate\u2014to rack up a series of quick wins and build momentum.<\/p>\n\n\n\n<p>Seeing is believing. \u201cIn my sessions, we use a <a href=\"https:\/\/www.discover.com\/personal-loans\/debt-consolidation-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">debt payoff calculator<\/a> to illustrate how much faster someone could pay off their debt by reallocating just a small amount,\u201d Williams says. \u201cWhat they learn can be mind-blowing.\u201d<\/p>\n\n\n\n<p>Whatever strategy you choose, keep making payments and limit new debt. Even if it takes time to reduce your debt load significantly, chances are you\u2019ll feel more empowered with a plan in place.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-create-an-emergency-fund\"><br>Create an emergency fund<\/h2>\n\n\n\n<p>Life is full of surprises, and unexpected expenses like car repairs or medical bills can easily derail your finances. However, building a dedicated <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/why-you-need-an-emergency-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\">emergency fund<\/a> can help you prepare for unforeseen events.<\/p>\n\n\n\n<p>Aim to set aside at least three to six months\u2019 worth of living expenses in a separate, high interest rate savings account, where your money can grow without being locked away. Consistency is key, even if you save just a small amount each month.<\/p>\n\n\n\n<p>The peace of mind that comes with an emergency fund is great for overcoming financial stress. Knowing you have the resources to handle unexpected situations without relying on credit cards or loans builds confidence.<\/p>\n\n\n\n<\/div>\n\n\n<div class=\"mx-auto block-quote block-quote--1back bg-fixed bg-center bg-no-repeat bg-cover z-0\">\n    <div class=\"block-quote__glow\"><\/div>\n    <blockquote class=\"post--constrain-large\">\n        <p>&#8220;Just having a plan can help you feel more in control.&#8221;<\/p>\n                    <footer class=\"block-quote__source\">Traci Williams, certified financial therapist<\/footer>\n            <\/blockquote>\n<\/div>\n\n\n    <div class=\"post__content\">\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-maintain-good-credit\">Maintain good credit<\/h2>\n\n\n\n<p>Your credit score plays a large role in your financial well-being, impacting everything from loan approvals to the interest rates you\u2019ll pay. A strong credit score can save you money, ultimately reducing stress in the long run.<\/p>\n\n\n\n<p>Here are the top four ways to keep your credit in good shape, according to <a href=\"https:\/\/www.usa.gov\/credit-score\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">USAGov<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-to-pay-bills-on-time\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Pay your bills on time<\/strong><\/a><strong>.<\/strong><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Check your credit report regularly.<\/strong> If you spot any errors, report them to the three major credit-reporting bureaus: Equifax, Experian, and TransUnion.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Keep balances below your credit limit.<\/strong><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Build a long credit history<\/strong> by keeping credit accounts open and using them responsibly.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-manage-your-savings-for-life-goals\">Manage your savings for life goals<\/h2>\n\n\n\n<p>Let\u2019s say you\u2019re covering your basic needs but are still worried about funding big life goals like college, a wedding, or retirement. Finding a balance between frugality and personal fulfillment is important for overcoming financial stress. Here are some quick tips for managing everyday spending while still making progress toward your dreams:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Create a budget for college. <\/strong>Whether you\u2019re paying for your education or someone else\u2019s, having a <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-to-budget-as-a-college-student\/\" target=\"_blank\" rel=\"noreferrer noopener\">spending plan for college expenses<\/a> can reduce stress.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Be strategic about weddings. <\/strong>Prioritize your must-haves. From flowers to catering, you can find creative <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/money-saving-tips-wedding\/\" target=\"_blank\" rel=\"noreferrer noopener\">ways to throw a wedding for less<\/a>.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Boost your retirement savings. <\/strong>Time is on your side when it comes to <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/steps-for-retirement-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\">planning for retirement<\/a>. Starting now\u2014even with modest contributions\u2014will pay off later. Try upping your contributions when you get a raise or bonus (your future self will thank you). And if your employer offers a 401(k) match, make sure you\u2019re contributing enough to get the full benefit\u2014it\u2019s basically free money.<\/li>\n<\/ul>\n\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-visualize-how-to-deal-with-financial-stress\">Visualize how to deal with financial stress<\/h2>\n\n\n\n<p>With these practical steps, you\u2019re on your way to building a strong financial foundation\u2014a key part of how to overcome financial stress. Staying focused on your future goals will help keep you motivated along the way.<\/p>\n\n\n\n<p>\u201cI encourage people to dream,\u201d Williams says. \u201cWhat do you want your future life to look like? And what financial decisions can you make today to get there?\u201d&nbsp;<\/p>\n\n\n\n<p>To set clear goals, imagine where you want to live, what you want to do in your free time, and what kind of work you\u2019d like to do. Williams says this kind of visualization exercise helps create an emotional connection to your future self\u2014and that may inspire you to take action today.<br><br>With these tips to guide you, financial stress may become a thing of the past.<\/p>\n\n\n\n<p class=\"disclaimer\">Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.<\/p>\n\n\n\n<p class=\"disclaimer\">The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Worries about money causing you anxiety? Here are practical steps for overcoming financial stress and gaining more control over your finances.<\/p>\n","protected":false},"author":15,"featured_media":22625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5,90],"tags":[34,37,111,127,32,137,39],"class_list":["post-21377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving","category-unexpected","tag-budgeting","tag-emergency-fund","tag-financial-plan","tag-how-to","tag-online-savings-account","tag-paying-down-debt","tag-saving"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/21377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/comments?post=21377"}],"version-history":[{"count":13,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/21377\/revisions"}],"predecessor-version":[{"id":22624,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/21377\/revisions\/22624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media\/22625"}],"wp:attachment":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media?parent=21377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/categories?post=21377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/tags?post=21377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}