Couple looking at their finances at the dining table

5 ways to reduce financial stress

Fiona Peake

By Fiona Peake

The cost-of-living crisis has affected us all, and if you’re feeling overwhelmed by financial stress, you're not alone. It's completely natural to feel anxious when money is tight, but the good news is that there are steps you can take to make things a little easier.

While we can’t control everything—like rising prices or unexpected expenses—there are practical ways to manage your money and reduce the stress that comes with it. Here are five simple strategies to help you take control of your finances, now and in the future.

1. Break down your finances into simple steps

Facing financial difficulties can make it tempting to avoid looking at your finances altogether. However, having a clear picture of where you stand is often the first step toward reducing stress.

  • Start by taking a look at the money coming in and going out. You can break it down by household or individual, depending on your situation.
  • Track your spending.  There are plenty of free apps that can be used to track spending. Alternatively, a spreadsheet, or even a notepad, would work too.
  • Identify opportunities to save or cut back. For example, check your subscriptions or daily habits to see where you can make savings.

Once you’ve got the full picture of your finances, it becomes easier to see what you can control and how to move forward.

2. Focus on what you can control

It’s easy to feel powerless in the face of rising costs but focusing on the things you can control can make a real difference. Start by reviewing your essential and non-essential costs.

  • Cancel or reduce subscriptions: Are you subscribed to multiple streaming services or premium apps? Cutting back can save hundreds over the year.
  • Make small changes to your grocery shopping: Consider switching to supermarket own brands, planning meals in advance, and shopping at discount stores.
  • Review your bills: You may be eligible for cheaper deals on things like your phone or broadband.

By focusing on what you can adjust, you’ll be better positioned to take control of your finances without feeling overwhelmed.

3. Don’t be afraid to talk to your lenders

It can be daunting to approach lenders when you’re struggling, but most are open to discussing options if you’re having financial difficulties.

  • Ask for temporary relief: Some lenders may allow you to extend your payment terms or reduce interest charges for a set period.
  • Seek help from charities: Organisations like StepChange can help you negotiate with lenders if you’re unsure where to start.

Remember that making changes to your repayment plan may affect your credit score, so it’s important to weigh your options carefully.

4. Consider supplementing your income

If you're able to take on additional work, even small amounts of extra income can relieve financial pressure. There are several ways to supplement your income without committing to a second job:

  • Sell unwanted items online: Platforms like eBay, Vinted, or Facebook Marketplace can help you declutter and make some money.
  • Look into online side hustles: From freelance work to completing surveys, there are flexible ways to earn extra money.
  • Speak to your employer: If you can, explore opportunities for overtime or negotiate a raise.

Not everyone can take on extra work, and that’s okay. The key is finding what works best for your situation.

5. Prioritise self-care and mental wellbeing

Financial stress can easily take a toll on your mental and physical health. Taking time for self-care is essential, especially when life feels overwhelming.

  • Stay organised in other areas: Keeping on top of household chores or meal planning can give you a sense of control.
  • Dedicate time to self-care: Whether it’s exercise, meditation, or a hobby you enjoy, carve out time regularly to focus on your wellbeing.
  • Money and mental health are closely connected. Make changes where you can, but know that help is out there.

Charities like Mind and Samaritans offer free, confidential help if you’re struggling with stress or anxiety. For help with money worries, Citizens Advice and StepChange can help you arrange a way forward.

Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.

Fiona Peake

Fiona Peake

Personal Finance Writer

Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.

Couple looking at their finances at the dining table Couple looking at their finances at the dining table