Episode 266 - Why Money Stress is Worse Than Divorce or Death
Financial stability is a goal many aspire to, but the relentless pressure to manage expenses, pay off debt, and keep up with financial demands can have severe consequences on health. Often overlooked, financial challenges can indeed make one physically sick. This blog post delves into the hidden health risks of financial stress and offers practical tips on protecting your well-being.
The Hidden Health Risks of Financial Stress
While financial stress is a known adversary, its full impact on health is often underestimated. According to research, the connection between financial anxiety and physical health issues is profound and far-reaching. A recent article from Time.com titled "Is Money Making You Sick?" by Diane Harris discusses this very issue. Harris reveals that financial strain can lead to anxiety, depression, pain, inflammation, heart disease, high blood pressure, headaches, insomnia, ulcers, back pain, arthritis, and even asthma. Financial stress can result in a 60% greater risk of developing serious health problems compared to other stressors.
Personal Testimonies and Real-Life Impact
In discussions on the Debt Free Dad podcast, hosts Brad Nelson, Amber Taylor, Kati Hatfield, and Ryan Nelson share their personal journeys dealing with and overcoming significant debt. They collectively highlight how financial stress impacted their health and overall well-being.
Amber recounts saving and paying off over $54,000 in just 20 months, emphasizing the physical relief she felt correlating with financial achievement. Kati shared her experience of paying off $171,000 in debt over six years and noticing a decrease in stress-related health issues. Ryan echoes these feelings, having paid off about $160,000 over eight years while raising three kids.
Why Financial Stress is Detrimental
Numerous studies substantiate the link between financial stress and physical health ailments. For instance, the University of Virginia and Columbia University conducted research showing that merely contemplating financially stressful scenarios can lower pain tolerance and increase self-reported pain levels. Financial insecurity indeed physically hurts.
Brad Nelson, reflecting on these findings, emphasizes how financial strain creates a vicious cycle of stress affecting not only one’s health but also professional and personal life. Financial woes lead to poor performance at work, strained relationships, and an overall decline in quality of life.
Taking Control: Steps to Reduce Financial Stress
The podcast hosts all agree on a crucial point: taking responsibility and control of one's finances can significantly mitigate stress. The journey to financial freedom often starts with a single step: awareness. Here are some practical tips they suggest:
- Create a Financial Plan: Knowing your financial standing by organizing debts, budgeting, and setting realistic financial goals can restore a sense of control and hope.
- Seek Support and Guidance: Joining financial literacy programs like Debt Free Dad’s Roots can provide the necessary tools and community support to navigate financial challenges.
- Celebrate Small Wins: Recognizing and celebrating small financial milestones can boost morale and reduce stress.
- Mindset Shift: Viewing financial management as a positive step towards overall health can change one’s approach to dealing with money.
Real-Life Success Stories
Success stories shared by podcast listeners underscore the benefits of taking control. For example, Carla paid cash for concert tickets, demonstrating disciplined budgeting. Jesse successfully used cash envelopes for dining out and car maintenance, highlighting the practical implementation of budget strategies.
Conclusion
Financial stress is a significant health risk, but there are practical steps and resources available to alleviate this burden. By taking control, creating a financial plan, seeking support, and celebrating small milestones, individuals can improve both their financial health and overall well-being. Remember, taking action today can pave the way for a healthier, stress-free future. For guidance on starting your journey to financial freedom, visit Debt Free Dad’s website and explore their resources.
Resources Mentioned
Get better results with your finances in 30-60 days - GUARANTEED. Watch this video to learn how! - https://www.debtfreedad.com/payoff-debt-in-60-to-90-days
- The Totally Awesome Debt Freedom Planner
- For more help, and a step-by-step process to get started, enroll in Brad's FREE online course, LIFE WITHOUT PAYMENTS.
Free Tools and Downloads at www.debtfreedad.com
Connect With Brad
- Website - https://www.debtfreedad.com
- Facebook - https://www.facebook.com/thedebtfreedad
- Private Facebook Group - https://www.facebook.com/groups/lifewithoutpayments
- Instagram - https://www.instagram.com/debtfreedad/
- TikTok - https://www.tiktok.com/@debt_free_dad
- YouTube - https://www.youtube.com/@bradnelson-debtfreedad2751/featured
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Episode Transcript:
Brad:
Hey guys, so today we are diving into the topic that often gets overlooked, as it relates to your finances, and it's. Are your financial challenges actually making you physically sick? Now, while we all strive for financial stability, the relentless pressure to manage expenses, pay off debt and keep up with the financial demands can have a serious consequence on our health. Can have a serious consequence on our health. So join us in today's episode as we explore the hidden health risks of financial stress and share practical tips on how to protect your health. Let's get started.
Announcement:
You're listening to the Debt-Free Dad Podcast with Brad Nelson. Brad and his co-hosts experienced the anxiety of living paycheck to paycheck before learning the fundamentals of living paycheck to paycheck before learning the fundamentals of financial success. They are now on a mission to empower regular people to pay off their debt for good and enjoy happier, less stressful lives. Keep listening for inspirational interviews, tips, tricks and practical advice to gain financial freedom.
Brad:
Hey guys, welcome to today's episode. I am Brad Nelson, founder of Debt Free Dad. I paid off about $45,000 of debt, have been debt free now for more than 11 years. I've also been fortunate enough to help thousands of other people save and pay off tens of millions of dollars with the work that we do here at Debt Free Dad.
Amber:
And I'm Amber Taylor, and we have saved and paid off over $54,000 in just 20 months and have been living debt-free outside of our mortgage since May of 2018.
Kati:
And I'm Katie Hatfield. I am still on my debt journey and over the last six years, on a single income, I have paid off over $171,000 in debt.
Ryan:
And I am Ryan Nelson, and my wife and I paid off about $160,000 over eight years while raising three kids.
Brad:
All right, guys. Now, after listening to this episode today, if you want to take your finances to the next level, you want to get better results in seriously as just as little as 30 to 60 days. We're going to be sharing some details about how you can do that later on in today's show. And, by the way, before I get to the topic, I just got to say Katie, I think every time we come on here and you do your intro, it's like you're at 150, then 160, now 170. Every time I add a promo, I'm like, how did I do this?
Kati:
Like what? How did that? Would have been a house, you know.
Brad:
Makes you sick, don't it? But hey, the fact is is you've done it. It's incredible, so I just I just want to give you congratulations. That's so cool.
Brad:
Today, guys, we are talking about what that kind of debt can do, uh, to your health. And and I ran into this article as I was doing some research, honestly, for another podcast episode is going to be a guest on another show and I was just, you know, tooling around looking for some new stats and things on personal finance to freshen up some of the stuff that we talk about. And I came across this article and I sent just a little snippet to our podcast team and I was like we have got to talk about this, because I think this we always talk about financial stress here. We always talk about, you know, the ripple effect of your financial challenges and how that can play or have such an impact on the rest of your life. And I don't think sometimes we actually give as much credit and I hate to use the word credit maybe, man, that's the wrong word but I don't think we actually see how serious the consequences are to the rest of our life when it comes to serious. The consequences are to the rest of our life when it comes to living under constant financial stress, right, and I think this article really, man, you guys just got to listen to this.
Brad:
I want to read this. This comes from timecom and the article is titled Is Money Making you Sick? All right, and I believe this was written by Diane Harris, so I want to make sure we give Diane some credit. Also, this was written on April 15th, so I want to make sure we give Diane some credit. Also, this was written on April 15, 2024. So at the time of this recording of this show, well, we're talking like almost like three months ago, three, four months ago. So I want to just read a good part of this. We're going to kind of go back and forth and pick apart this article a little bit and talk about it, but it says half of homeowners right now and renters are struggling to afford their monthly payments. Credit card debt at $1.1 trillion nationwide is at an all-time high and progress in attaining inflation has flatlined lately, leaving the price of everything from eggs to Uber rides up dramatically from pre-pandemic levels. And she says it's enough to make you sick, literally that pain in your back or that throbbing of your head or that churn in your gut you feel when you pay your bills or check your credit card balances.
Brad:
Science confirms that it's real, as a growing body of research documents the strong connection between financial anxiety and struggles with physical and mental health, particularly over the long term. Now, recent studies have linked money worries to anxiety and depression, pain and inflammation, heart disease, high blood pressure, headaches, insomnia, ulcers, back pain, arthritis and even asthma, among other ailments, as well as a higher risk of disability and early death. In fact, a study published earlier this year by a team of British researchers suggests that among the serious life challenges that people often face including divorce, disability, caregiving, illness, bereavement financial strain is the most the most. Nearly 5,000 participants in a longitudinal survey of aging found that people under financial strain had a nearly 60% greater risk of developing serious health problems, higher than any other stressors examined. And it goes on.
Brad:
Just to quickly say and I wanted to take a break here and it says and not only people with limited financial resources who are hurting, while lower income is strongly linked to greater health problems obviously makes sense. How you feel about your money situation, regardless of your income or socioeconomic status, has a significant impact on your health and there's plenty of worry to go around these days, obviously with things like inflation, high expenses and all that other stuff going on. So, guys, I mean I sent this to you guys because I was just like 60% greater than any other stressor. I was kind of shocked by that. And we do this. I mean we've been doing this now for darn near a decade and I was pretty shocked by that to find that it was that much more serious than all of the other things that are out there.
Ryan:
When I think money specifically, it's a trigger for a lot of other stress in your life, right, I mean there's the money stress, but then there's also all the other things. That lack of balancing your finances and taking control of that really play into the fighting with my wife all the time about it. The Christmases where we couldn't afford stuff and we're charging into the fighting with my wife all the time about it. The Christmases where we couldn't afford stuff and we're charging stuff. The poor performance at maybe your job because you're sitting there worrying about your finances.
Ryan:
One of the things I looked up before we got on here is on average, 20% of employees worry about their money less than one hour a week, 31% worry about it one to two hours a week at work, 19% worry about it three to four hours a week and 17% of employees worry about our finances while working more than five hours a week and that was me. I was probably in that somewhere, probably I would say maybe even five. I remember just dealing with that sort of stuff. I was stressed to of the, you know, top reasons for divorce and things like that.
Amber:
It's just it doesn't surprise me so much, but it's very eye opening for sure.
Kati:
And when I saw the stats, I was kind of like the analytical part of my brain was like, ok, did I notice health issues? Because I mean, I'm still on the journey, but having paid off $170,000, versus when I was $10,000 paid off, you know, years ago. Then I looked at the medicines I was taking for acid reflux and all kinds of crazy stuff and I don't have those anymore and I was like, oh, like I just got better and it's like, well, maybe I'm not stressing over all of that and it's not physically taking a toll on me like it used to. It's not like I really changed my diet or anything. I definitely am not working out anymore or anything like that. So it's I'm not working out anymore or anything like that.
Kati:
So it makes sense. I'm connecting the dots.
Announcement:
Yeah.
Brad:
But what's interesting to me is did we connect the dots? When we were broke, I didn't Heck no, I know, I didn't make those connections and it's interesting. I mean, we see people who come through roots and they'll start and within the first 60, 90 days they will come back and they'll report that they're feeling much better. But it's more like that six to 12 months. And we just had a few people actually celebrate this where they were like, now that my finances are in such a better place, I'm really taking notice to my overall health and I'm really working on that now. And they even say I didn't realize I was nearly as stressed as I was when I was in debt, but now that I don't have it anymore, it was like it's like it's like just this relief.
Brad:
But I believe that most people probably don't relate a lot of their maybe health ailments or things that they're dealing with directly to maybe their financial challenges. And I think that's why this, this episode, is so important, because if you're wondering out there, if you're just like man, being broke is just normal and no matter what I do, it's never going to matter. I don't need to work on it, I don't need to pay attention, it's not important. I think this article drives home. It affects way more than just your bank account.
Kati:
And when you were talking about how many hours a week at work, people were worrying about their finances. If you think about it, five hours a week at work, people were worrying about their finances. If you think about it, five hours a week is one hour a day while you're working. And if you were just spending your 15 minutes of looking at your finances every morning, maybe that would save you that one hour of worrying throughout the rest of the day.
Brad:
Yeah, yeah. This article goes on and it says the money problems that hurt most and this is just a couple of quotes from the study that they did. It said a couple of people just mentioned being in debt has really affected my mental well-being. I worry on a daily basis. I don't sleep at night. Another individual said I have sometimes had back pain and even stomach problems, all due to being stressed over finances. Another individual said I feel like a failure for taking out money and not being able to pay it back on time. Making up money and not being able to pay it back on time, I am anxious and I lose sleep over it. It goes on to say a sampling of responses in a new qualitative study of link between health and finances by the Financial Health Network, a Chicago nonprofit, shows just how much people are hurting when it comes to their money. The participants ranged in age from 18 to 65 and in an annual income from less than $15,000 to more than $100,000. So, guys, this kind of was spread apart like quite a few different participants making all sorts of different income, but it says they all shared one common trait they were stressed about money and their health was suffering as a result In quotes.
Brad:
It says we've been hearing a lot about people having a hard time keeping up with rising prices or dealing with financial shocks and being overwhelmed by debt, says Angelana Fontes, the organization vice president of policy and research, and the pandemic which exasperated mental health challenges for a lot of people seems to have made everything worse. Research confirms how big a health threat being in debt is, especially when the loans are unsecured, like credit card or medical debt, compared to people with little or no debt. For example, borrowers with chronic or high debt are more likely to suffer from inflation and joint pain by the age of 50. And for that pain to interfere with work and other activities. People with medical debt are also three times more likely than others to grapple with mental health issues like anxiety and depression.
Brad:
It says even just thinking about financially stressful things can be harmful to your health. According to a study from the University of Virginia and Columbia University, subjects were asked to contemplate different anxiety-provoking economic scenarios, for example, living in a state with high unemployment or wondering if their college degree would shield them from job loss. Researchers measured the participants' pain levels before and after the exercise, either as self-reported or by seeing how long they could keep their hands in a bucket of ice-cold water. The subjects reported more pain and lower tolerance after thinking about a shaky financial future. The researchers concluded it physically hurts to be economically insecure. So I mean it's just again. I think it just adds more credibility to the overall study of just how much you know this financial stress just plays a role and I think you know it's like I said. I think the trouble is so many of us we just don't associate that stress or that financial challenge with some of these ailments that you could be experiencing.
Ryan:
I think all of us having gotten out of debt and the people that we help, I think one of the things as you read these articles and that I just always want to caution people against is, you know, sometimes they're written from this viewpoint of it's the pandemic's fault, it's the this fault, it's the that fault, it's the rising prices fault.
Ryan:
And I think you can kind of read this article and if you're having these hard times, like if I was back in debt reading this article, I'm like, yeah, that's whose fault it is. And I'm not saying those things don't contribute, they do 100%. But I think for us and if you're feeling this way, I think all of us would probably agree that it really didn't start to take any effect until we took responsibility for it. And so I think when we did that, the amount of our stress level went down immediately. When we started doing that, we see people that join roots, we see people that we help, and I think when people just finally take control, and even if it's a big number, I think people have a more sense of okay, I know where I'm at now. I'm still stressed, but it's less than what it is when I'm just like not paying attention and just pretending it's not a problem anymore.
Amber:
Well, when you have a plan of action, that goal, that kind of you know, okay, I know this next step, this is what I'm going to do, I'm going to do the emergency fund, or I'm going to start with my first smallest debt, Like when you have that plan of action, it almost feel you take back your control, like you said right.
Brad:
Well, and I think that's where a lot of people struggle is that they don't. I mean, I did. I didn't have a idea how to get out of debt. I didn't know how to do it. You know, and I think when you look at your financial challenges, you are in that hopeless state, you know, and it's it's hard to imagine, like how, how can I, you know, make that progress?
Brad:
So I feel like when you join like in roots and again it's not to just pat ourselves on the back that we have this most amazing program which, by the way, we do but at the same time there's a lot of just the process that you go through when you actually start working on a system that actually works, when you actually have your stuff organized, when you actually start to be able to save a little bit of money, when you actually start to pay down a little bit of debt. It doesn't even have to be a huge amount. You know, we just had a celebration today. At the end of it they said this they're like I actually can feel, like I can do this now, and that feeling of hope is what melts away a lot of the worry and the stress and is immediate health booster yeah, I would say seeing the numbers on paper the first time was enough to make me physically sick, just like how, how do I owe that much?
Kati:
and yeah, um, that's a problem. But now that I'm seeing the number that's left and knowing okay, ok, like by the end of the next year we've got this like, and celebrating each little win along the way, it's always that positive spin on it versus the oh gosh, like what am I going to do when I didn't have a plan before? It just makes a total difference of just that switch of looking at the positive versus the negative associated with it.
Brad:
Yeah yeah. I love the quote here Towards the end of the article. It kind of goes into just a few things that can help you. By the way, one of it mentions do some yoga.
Amber:
There's nothing wrong with yoga.
Brad:
I don't think there's anything wrong with it, but I was like, of all the things that you could do to reduce financial stress, forget to do yoga. It's like that was just a weird tip, I don't know. It probably works, but that was weird. But I do love this quote. It says just doing one thing can help restore your sense of control, which can have a huge health benefit. And I think that's the thing you need to be thinking about. If you're listening to this and you're wondering, like, what is that one thing? Listen to this podcast for number one. We share so many tips and tricks on the show that could be that one thing that could get you going. So that was so good. And then, guys, I just wanted to share one more study from Bankrate, because I know it's easy to share, like these studies and it's like, well, that's one finding what are some other ones? And this one's from Bankrate. This one was also recently done here, in 2024.
Brad:
And a couple of key points from their study. It says money is impacting millions of Americans' mental health. 47% of US adults say that money has a negative impact on their mental health, at least occasionally, including effects like anxiety, stress, worrisome thoughts, loss of sleep or depression, or at least occasionally, it says Rising prices are the chief culprit. As least of right now, is what people are feeling. 65% of US adults who say money negatively impacts their mental health cite inflation and or rising prices as a reason. But then it says but paying for everyday items and building savings were also frequently cited as well. So I think, like what Ryan said. I mean, it's easy to point the finger at some of these things and some of these things could be pushing your alert button and your stress buttons. There's no question about it. But the reality is is you were probably having some struggles to begin with it. The sad reality is just that inflation has just put on more and more pressure on what was already probably not such a great situation.
Ryan:
Yeah, and I think you know, kind of going back to what you said earlier, I would pose this question and this is not going to be for everybody, but I know this was for me. You know, when you think about inflammation, heart disease, high blood pressure, headaches, insomnia, ulcers, back pain, arthritis, asthma, all of these medical things that are starting to be proven that money contributes to, like, look around, Is all the crap that you have worth that, because that's what I was. I totally was there. I remember like the house, the cars, the vacations, all of that, and I was trading those things for all of that.
Ryan:
And I would just kind of ask yourself and go into potentially a job you hate and that you don't even like, but you're going because you have to pay the bills, which then that leads to depression and anxiety and it's almost like this revolving door of you can't get out of it. You're stressed about money, so you go to a job that you hate and you're stressed about the job, and then it's like you can't get out of this thing. But if you can take control of your money and we've seen this in roots again people completely, completely transform their lives, go into different fields, go into different work. It's not. It has such a bigger impact than just you know. Getting out of debt and like having more money, it can radically change your life.
Amber:
Like might drop.
Brad:
It's true, though. Yeah, it is. Well, I think it is. It is this vicious cycle that you get yourself into, but I think that's the thing that I think you pointed out, ryan is that, as much as this can be a negative ripple effect in your entire life, it also can be a very positive one too, and you know, it doesn't take long for you to start feeling some of those things, and I think, um, I I say this all the time, and I mean Amber, you're in our group, I mean Ryan, you're in our group, I mean Katie, we're all in the group, and you guys probably see it all the time too. It's like people feel better, quicker than, say, getting the big savings and they get big debt payoff numbers. They feel better. Those are the wins that we see first and foremost. Besides, like I saved my first emergency fund, or I paid off a few credit cards, or whatever it might be, it's usually like I feel amazing, like I'm doing this. It actually is working, and that's where the benefits come from.
Kati:
I always love when the celebration is. I just joined Roots, I just took that first step and I haven't even done anything except I'm going to do this. I know I'm going to do this, I've made that decision and I think that's a great first step.
Brad:
Yeah, yeah. And if you're one of those individuals who wants to get started and you're looking for some tips on how to do this, head over to our website. Seriously, in as little as 30 to 60 days, you can start feeling better about your financial situation, no matter what it is. Now, I'm not saying it's going to be easy, right. We're not selling that. What we are selling you is that you can improve over time. You can get better. Things can improve, especially as it relates to your money and the rest of your health. All you have to do is head over to debtbtFreeDadcom. Click on the green time for the celebrations of the show.
Amber:
First we have Hope, went to Ulta. My shampoo and conditioner was on sale and got to use my $10 birthday coupon.
Brad:
That is awesome. Hope, Great job, Carla says. I went to go see Kenny Chesney the other night and we'll also see some new kids on the block in a couple of weeks. Great win, Budgeting, paying cash for those concerts Love it.
Kati:
And Jesse ate out twice this week using money from their cash envelopes and put gas in the car with the other envelopes Started with four envelopes. And put gas in the car with the other envelopes, started with four envelopes, for different stuff. Eating out and car maintenance are two of them.
Brad:
Way to go that's awesome, yep great win.
Ryan:
Jesse uh and mary uh got a new windshield for her car.
Brad:
Not really fun, but it's necessary yeah, hey, you didn't have to go into debt for it exactly that's a great win. So, as always, guys, congratulations to all of you guys who are taking a stand for your financial life and are wanting better. Hey, we get that. Getting out of debt it's not easy, but with our help and with your consistency and discipline and hard work, we promise you guys, this will be some of the best work that you guys do in your entire life.
Announcement:
Thanks for joining us on today's show and we will see you guys on next week's episode, take care. Thanks for listening to the Debt-Free Dad podcast. Connect with us on Facebook, tiktok, youtube and Instagram Just search Debt-Free Dad. If you found value in today's episode, please leave us a rating and review. We so appreciate it. For resources, show notes and links mentioned in today's show visit debtfreedad.com. Catch you next week.
