If you earn a low or unstable income, you might find it hard to cover your basic living costs from month to month. Financial uncertainty can also mean other events that have a financial impact (like getting sick, accidents, moving house, deaths in the family, and many others) are more likely to affect your ability to put food on the table and have a roof over your head, which can make you worried and stressed.

If you’re a student, you might experience financial stress, especially if you don’t have financial support and you’re not working. Having to pay back a student loan can also contribute to financial stress.

If you’re an older adult and you haven’t saved up for your retirement, you might be more likely to experience financial stress. In a world of rising costs, you might also feel financially stressed even if you have saved and you once thought you’d have enough money for your retirement.

You might become financially stressed if you’re the only parent contributing financially towards your child/children. The ever-rising living cost and lack of family-friendly jobs and affordable childcare options can make it hard to earn enough money to provide food and other basic needs for your child/children, which can make you more vulnerable to financial stress.

If you have no money coming in, this can cause serious financial stress. Worrying about whether you’ll have enough money to pay the bills, food, and other living expenses can negatively affect your mental health, while job hunting can cause additional pressure. If you’re unfit for work, it can be even harder, but there are government support options you might be able to access.

Owning your own business typically comes with more financial risk than working as an employee for a company. There are times when you might have to deal with slow sales, economic uncertainty, and competition from similar businesses. Starting a business often involves taking on debt, which can be another major source of financial stress, as well as the social and emotional pressure that comes from knowing that the failure of your business would affect your employees too.

Statistics show that, on average, women still earn less than men. They also tend to have less money saved for retirement due to taking career breaks to either raise children or care for their parents or other relatives. So if you’re a woman, you might be more prone to experiencing financial stress.

• Medical bills
• Urgent home or vehicle repairs
• Separation or divorce
• Funeral costs
• Falling victim to scams or fraud.

• Owing money to friends, family, or lenders
• Struggling to keep up with bills or loan repayments
• Being affected by failed investments, gambling, or risky financial choices
• Feeling responsible for supporting family or community.

• Living beyond your means or having limited savings
• Not having superannuation or a retirement plan
• Low confidence with managing money or financial decisions
• Experiencing financial abuse or control in a relationship.

• Economic downturns or rising living costs
• Mental health challenges that make it harder to manage money or seek help.

It's easy to be self-critical and judge ourselves for the situation we're in, but sometimes things happen outside of our control, we have bad luck or unexpected things pop up. If this is the case for you, try not to add self-criticism and judgement to the stress you're already feeling. Try reframing your negative thinking and focusing on the positive. So, instead of thinking about yourself as a failure when you make a mistake, you can focus on what you’ve learned from it and how you can use it to do better in the future.

If you're feeling stressed, it's important to continue making time for things you enjoy.

Calling friends, spending time with family or doing something you like are really important to our wellbeing and can give you the energy and perspective you might need to make good financial decisions too.

Self-care activities don’t have to be costly either. There are many free or low-cost activities out there, such as hiking, going for a walk in the park or spending time with your friends.

It can be hard to talk about your financial problems with your loved ones. You might feel embarrassed about your situation, or you might worry that you’ll make your loved ones upset.

However, sharing your problems with those closest to you can help you feel supported and less alone. Plus, research shows that social support can help you cope better with stress.

So, if you feel up to it, try talking to someone you trust about how you’re feeling and what you’re going through. If unsure how to start a conversation, we’ve created a guide to help you. If you feel too uncomfortable talking to someone you know, you can contact Lifeline and speak to a counsellor anonymously.

Financial stress can feel all-consuming and take every minute of your day. One evidence-based approach to feeling better is to limit your worry time about money to a specific time once a day. Having a designated worry time can help interrupt the repetitive thinking cycle. By learning to postpone your worries, you might find that they are less intrusive in your life.

Choose a time, place and amount of time to focus on your worries. Make sure you’re in a comfortable space, that it’s not close to your bedtime and that it doesn’t last too long. When a worry pops in your mind, jot it down somewhere so you can remember it for your worry time. Then, get on with your day!

If you haven’t already, creating a budget is a great initial step towards resolving your financial problems. It can help you reduce feelings of uncertainty, be in control of your finances and identify what changes you need to make to regain financial stability.

You can find lots of free budgeting templates online, but here are some steps to help get you started:

1. First, figure out your monthly income after taxes. Include your salary and any additional sources of income, including government benefits.
2. Make a list of your expenses. Include both fixed and variable expenses. Fixed expenses are expenses that stay the same each month, such as rent, loan repayments, and subscription services. Variable expenses are expenses that can change from month to month, for example, groceries, entertainment, and clothing. You can simply write a list of your expenses in the notebook or use budgeting tools or apps.
3. Prioritise your expenses by deciding which are essential and which are not. Essential expenses include your basic living costs, like rent, utilities, and groceries. Non-essential expenses are things like eating out, subscription services, and expensive hobbies.
4. Set spending and saving goals. If you’re in debt, only spend money on your essential expenses and save the rest for paying back the money you owe. Once you’ve caught up on repaying your outstanding debts, you can adjust your budget and include a limit for non-essential expenses.

Cutting down your expenses and living below your means is a smart way of protecting your financial stability.

Here are some tips for cutting down your expenses so that you can save more money:

• If you need to buy something new, check out whether there are any sales happening on that item
• If you’re going out to eat or for drinks, look at whether any bars and restaurants have specials
• Where possible, and if you’re not going too far, walk or use public transport rather than your own vehicle to save on fuel
• Cook at home instead of ordering in or eating out
• Shop at stores that offer membership programs so that you can access discounts
• Use apps and other tools to find good deals and discounts.

Pressure to pay off your debt can lead to heightened stress levels, and prolonged stress can negatively impact your health, so it’s important to pay off your debt as soon as you’re able to. If, after working out your budget, you find that your monthly income is insufficient to cover your debts, read more about some other options below.

Debt counsellors are financial professionals that can give you financial advice and support to pay and manage your debts more successfully. There are organisations that offer free financial and debt counselling, such as National Debt Hotline.

If you’re struggling to pay off your debt, you can contact the organisations you owe money to and try to negotiate new payment terms based on how much you can afford to pay them each month.

If you have a large amount of debt, you can consider debt consolidation. This is where you take out a loan at a reduced interest rate to cover all of your existing debt. So, instead of making multiple debt repayments each month at high-interest rates, you can make a single monthly repayment at a low-interest rate. There are both pros and cons to debt reconsolidation, so consider talking with a debt counsellor before making a decision about it.

If you have the capacity to put in a little extra time and effort, there are things you can do to increase your income from month to month so that you can pay off your debt quicker.

Here are a few ideas:

• Sell old items that you no longer need. Spend a weekend going through your belongings — there’s likely to be at least some things you don’t want or need anymore. You can then post and sell these items online, such as on Facebook Marketplace, or Ebay
• Look for part-time work. You might be able to find casual work in industries where there’s a high demand for workers and a low barrier to entry. For example, hospitality or retail. You can also look at getting jobs like pet-sitting or babysitting if you have some experience in these areas
• Complete paid surveys online. You might not make a lot of money, but filling in surveys online is one way to make a little extra cash if you have the time. Just remember to read the fine print when it comes to data protection and privacy, as some companies might sell your data to third parties
• If you have a car, you can join apps like Uber and work as a driver to earn extra money after your usual work hours or at weekends
• If you have a spare room in your home, you can rent it out on apps such as Airbnb.

When working towards obtaining financial security, slow and steady wins the race! It’s important to take small, achievable steps towards feeling better about your financial situation and put a plan in place. Fortunately, you don’t have to do this on your own — there are people and organisations that can help you for free.

The Australian government offers financial support for people who are struggling financially. Below are some support options that might be available to you if you meet certain criteria :

• Job seeker payment. You might be eligible to receive this benefit if you’re unemployed, working part-time, or if your work hours were recently reduced. You can also get it if you’re sick or injured and unable to work
• Youth allowance. There are different types of benefits available to people between the ages of 16 and 24 who are either studying full-time, or doing an apprenticeship.
• Crisis payment. If you’re experiencing serious financial problems as a result of a crisis — such as a natural disaster or domestic violence — then you may be eligible for this benefit.
• Emergency accommodation. If you’re at risk of becoming homeless or you’re experiencing another type of housing crisis, your state or territory will organise emergency accommodation for you. This could be at a motel, budget hotel, or caravan park.
• Superannuation. You might be entitled to getting some of your superannuation early if you’re experiencing severe financial hardship. However, the criteria for having it released early is very strict, and there are risks to having it released early. So make sure to speak to a debt counsellor first.
• Cost of living support. You might be eligible for help with living costs, such as housing, transport, and utility and medical bills. How much assistance you get and whether you’re eligible depends on which territory you live in.
• No interest loans. Good Shepherd Australia New Zealand offers loans to people on low incomes without interest or fees. These loans can be used to cover basic expenses. They also offer loans to victims of family and domestic violence. A maximum of 2000 dollars can be borrowed, and it has to be paid back within 24 months.

Self-care is any action you take to preserve your own mental, emotional, spiritual, and physical wellbeing.

When you're financially stressed, self-care might be the last thing on your mind. However, it’s important to prioritise self-care because it can help reduce stress and anxiety and make it easier for you to cope. It can also help you be in a better emotional space to make financial decisions.

Some examples of self-care include eating a healthy diet, exercising regularly, getting enough sleep, socialising, engaging in hobbies, and taking time to relax.

Constantly worrying about money can lead to mental health conditions like anxiety.

For ways to manage overwhelming feelings, you can try these evidence-based strategies to minimise or reduce the impact of anxiety on your life.

Financial experts suggest that, if you’re able to, you should try to save some of your income each month. However, depending on how much you earn and what your expenses are, you might not be able to save as much as you want, and that’s okay. Even saving a small amount of money each month can help you create a more stable financial future. If you have a hard time being disciplined when it comes to saving money, you can set up a recurring transfer to your savings account. This way, a portion of your income goes straight into your savings account at the beginning of each month before you can even think about spending it. 

Sometimes people overspend or spend impulsively as a way to cope with emotional pain or to fill an emotional void.

Below are some signs that you might do this:

• You shop to relieve stress and then feel bad about it later
• You justify overspending by telling yourself you deserve it
• You spend more money than you plan to, even though you’re in a difficult place financially
• You spend more money than you should because you’re trying to impress others.

If you have a problem with overspending and impulse-buying, you can set a personal rule to stop yourself from buying things that you don’t need and can’t afford.

When you want to buy something non-essential, tell yourself you’ll wait a week before buying it. During this waiting period, you’ll probably find that your urge diminishes, and you can avoid spending money unnecessarily.

If you’re not sure what triggers your impulsive spending habits, then it will be hard to stop them.

One way to identify your triggers is to keep a journal so that you can monitor what happens when you get the urge to impulse-buy. Whenever you feel the urge to spend money, record your thoughts and emotions, as well as anything that led up to the urge. After doing this for a week or so, review your journal entries and see if you can spot any patterns. For example, you might realise that you impulse-buy when you’re feeling sad or lonely.

If you find yourself often buying things you don’t necessarily need, you can set a limit on how much money you want to spend each month on non-essential items. You can do this by withdrawing the exact amount of money you want to spend that month on non-essentials to prevent yourself from overspending. Another option is transferring the money to a card you use only for non-essential purchases.

Often, one of the most powerful things you can do for a friend or family member is to let them know that you’re there for them. However, knowing how and when to do this can be tricky.

Here are a few tips:

• Try to create time for the conversation. This might mean suggesting a walk or other activity that gives you the time to talk, without distractions.
• Gently let them know that you care about them, and want to help.
• Listen and be curious about their experience. Give them space to share if they choose to. You can ask open questions such as ‘how are you feeling?’ or ‘what’s going on for you at the moment?’
• Sometimes, it can help to open up about your own experiences, which can ‘give permission’ to your friend or family member to also share. Being vulnerable can be hard, but it’s easier if you’re both in the same boat.
• Rather than jumping to solutions, it can be helpful to ask what they need from you at that moment. You might ask something like ‘would you like me to just listen right now, or would you like help thinking about what you might do from here?'
• Try to resist the urge to paint a silver lining or minimise their concerns. Instead, it can be helpful to validate their experience by saying things like ‘it sounds like you are going through a really tough time right now’ or ‘that must be so difficult for you.’
• It can be really hard for people to open up, especially the first time, so don’t be disheartened or hurt if your friend or family member doesn’t want to talk about it.
• You might like to gently let them know that you’re still there if they change their mind, or if there’s something you can do in the future.

If your loved one is receptive to getting help from you, you can brainstorm some solutions with them.

Here are a few ideas to get the ball rolling:

• Budgeting. If you’ve used budgeting yourself, or you understand how it works, then you can help your loved one come up with their own budget. Often having a second set of eyes can be helpful as it can provide another perspective and way of thinking. You can find lots of free budgeting templates online
• Cost cutting. You can encourage your loved one to use our tips for saving money
• Financial benefits. You can help them understand what community and government support options are available to them.
• Offer to go with them to financial counselling. You can go with them to financial counselling or speak with their bank. The National Debt Hotline is a handy contact for you to share with them.
• Extra income. You can give them suggestions for increasing their income temporarily by checking out our practical solutions for coping with financial stress.
• Provide practical support. You can provide practical support to your loved one by offering them help with errands or other activities. This might give them more time to take extra shifts at work, earn additional income from a side gig, or at least help them to be less stressed about other things in life on top of their financial situation.

Make sure to spend time with them and do fun, social things they enjoy so they can have some time out from financial stress and thinking about it. It might be spending time together watching a show, inviting them over for dinner, going for a walk, or spending time at the beach.

It’s important to know what your limits are and to be able to communicate these to your friend or family member, especially if they ask you to do things you don’t feel comfortable doing, such as lending them money. Make sure to communicate your limits on:

• The practical things you have time and energy to help with
• When and where you’re able to help, chat, or support
• Prioritising your needs or the needs of other people you support as well.

Having someone you can talk to about your experience can help you feel more supported and lighten the load you’re carrying. It can also help to feel more connected to others, and you might even pick up some tips from other people in similar situations. You might want to think about what is appropriate to share about the person you’re supporting or to just stick to how it’s impacting you.

Being kind to yourself while caring for others is really important. You might feel frustrated, stretched, or even powerless, but adding shame or guilt to those emotions by criticising yourself will only make you feel worse.

It’s ok to reduce the expectations you’ve set for yourself and to prioritise your self-care.

Research shows our diet can have a big effect on how we feel. Eating well doesn’t just make us physically healthier, but it can also help with our sleep, energy levels, and mood.

Our brains and bodies are linked, and exercise releases chemicals that boost our mood, including endorphins and dopamine.

You don’t have to engage in vigorous movement to feel the benefits of exercising. Gentle exercise like walking or yoga creates the same mental health benefits that running or a high-intensity workout does.

You might also like to combine the benefits of exercising with social connection by playing a team sport or simply going for a walk with friends.

It can be easy to reach for substances when you’re feeling low to make us feel better, or escape those feelings in the short term. But drugs and alcohol can be really harmful, especially when we’re already in a challenging mental state. Substances that alter our thought patterns can really amplify any feelings of distress.

Sleeping well is a really important part of mental health, but taking on too much as a carer can make healthy sleep patterns feel impossible.

Developing good sleep habits can help find the right balance.

These can include:

• Switching off your screens before bed
• Avoiding alcohol and caffeine before bed
• If you can’t sleep, get up and do something calming until you feel sleepy
• Trying to avoid napping during the day
• Keeping the bedroom for just sleep and sex.
• You might find that engaging in regular exercise, eating a balanced diet and regular use of self-care tools like meditation can make sleeping easier.

Research shows that being in nature can improve our mood. Connecting with the outside world is also a great way to reduce stress and our worries by reconnecting with the world around you.

Creating a regular routine can work wonders. Sticking to a routine can:

• Promote healthy habits
• Combat or prevent burnout
• Relieve anxiety
• Boost motivation levels
• Make us feel a sense of accomplishment.

Doing things that bring you joy is important for good mental health. It can help stop looping or painful thoughts, find a sense of achievement and increase positive emotions.

Hobbies are also a great way to form and strengthen social connection, and they can help you to develop routine and structure. You might also like to learn or try something new.