Since 1992, Stress Awareness Month has highlighted the importance of understanding and managing stress.
Now, 33 years on, it’s clear that money worries are still a concern for many of us. While salaries have remained largely flat, the cost of everyday life keeps creeping up.
Throw in the global economic rollercoaster, and it’s no wonder many of us feel a bit overwhelmed by our finances. It’s totally normal to feel the pinch at times – no matter how well we plan, life throws curveballs
Our annual Moneybox Money Mindsets study really shines a light on these pressures. It found that over 20% of Brits aren’t feeling too optimistic about their finances improving in 2025. The top reasons:
- Struggling to manage rising living costs – 42%
- Income is unlikely to increase – 28%
- Not earning enough to save or invest – 39%
- Worried about the economy – 33%
- Unexpected expenses keep setting me back – 26%
Looking back at last year, almost half (48%) said rising living costs made hitting their 2024 financial goals tough, while a quarter (25%) were hit by unexpected emergency expenses. Plus, 38% found it hard to save regularly, and 21% were living paycheck to paycheck.
Brian Byrnes, our Head of Personal Finance, says: “If money starts to feel overwhelming the best first step you can take is to get clarity. Take a step back and look at your finances as a whole. Whilst it might be tempting to push money worries to the back of your mind, remember that knowledge really is power. Avoiding addressing money niggles now will only heighten anxiety and make any issues harder to deal with in the long run.”
He also adds: “We all carry regrets about missed financial opportunities, but real progress is made with small, consistent steps. And the good news is that just starting—no matter how small the step—can instantly help you feel more in control. While we can’t predict what’s ahead, there are practical actions you can take right now to help you manage financial stress and build greater long term financial resilience.”
5 practical steps to ease financial stress and build resilience 2025
1. Review and optimize your spending
See where your money goes each month and be proactive about tweaking your budget. Look for those quick wins – like ditching subscriptions you don’t use, switching energy suppliers, or getting better deals on bills. Even small changes can free up cash for saving or investing. Understanding your spending puts you in the driver’s seat, even when prices are rising.
2. Schedule regular financial check-ins
Just 30 minutes a week to look at your bank statements, update your budgeting tools, and check those automatic payments. Regular check-ins help you stay on top of things, spot any issues early, and build good money habits that boost your confidence.
3. Build a buffer and make your savings work harder:
Start small with regular savings – even setting up automatic transfers or rounding up spare change can build an emergency fund without a massive lifestyle change. At the same time, make sure your savings are earning a decent return, and check out tax-friendly options like ISAs to help your money grow faster, tax-free. Smart moves now can really strengthen your safety net and boost your long-term returns.
4. Seek guidance and support
If unexpected bills or debt are causing stress, don’t hesitate to ask for help. Organisations like Citizens Advice offer free guidance, and many providers have flexible repayment plans to help you through tough times. Getting support can lift a weight off your shoulders, protect your credit score, and guide you towards a brighter financial future.
5. Be kind to yourself
Progress takes time, and there will always be bumps in the road. Don’t let setbacks derail you. Keep your eyes on your bigger goals and celebrate those small wins along the way – they’ll keep you motivated and moving forward.