Americans are suffering from financial burnout

Financial insecurity is worsening Americans’ mental health, according to a recent study by MarketWatch Guides shared exclusively with Newsweek.

Despite the fact that inflation is down significantly from its peak in June 2022, nearly half (47 percent) of respondents to a survey conducted by the financial news and market data company said 2024 was the year stressful life in terms of money. .

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A majority of 88 percent of respondents said they feel some level of financial stress, and 65 percent said their finances are the biggest source of stress, which has a significant negative impact on Americans’ mental health.

Some 41 percent even said their finances have “ruined” their mental health, and nearly two-thirds of respondents (64 percent) in the MarketWatch survey reported feeling “financial burnout” — a feeling of burnout or exhaustion when deal with money matters.

About 56 percent of respondents experienced sleep loss due to financial stress; 47 percent felt physical fatigue; 45 percent had headaches; 38 percent reported weight gain or loss; 34 percent noticed changes in appetite; and 33 percent had digestive problems.

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But what exactly is stressing Americans? About 57 percent said the reason was the high price of essential goods; 47 percent indicated the lack of savings and 46 percent the lack of income. Meanwhile, 37 percent blamed their debt and 39 percent the performance of the US economy. About 36 percent said that the high cost of housing was causing them stress, while 33 percent spoke about high interest rates.

Dealing with such a stressful situation and the anxiety it can cause has caused many Americans to avoid dealing with their finances altogether. About 44 percent of respondents to the MarketWatch survey admitted that they will ignore a financial problem until it turns into a crisis. But avoidance and neglect can further erode an individual’s vulnerable financial situation.

A significant percentage of survey respondents admitted to bad financial habits caused by the stress they are experiencing. About 58 percent said they do not use a detailed financial budget; 57 percent procrastinate important financial decisions; 44 percent overspend to cope with stress; Another 44 percent make purchases they can’t afford; and 41 percent avoid opening bills or reviewing card statements.

Americans are often alone in experiencing these painful situations, with 58 percent telling MarketWatch that they hide their financial stress from loved ones.

After the pandemic, Americans were hit by a cost-of-living crisis caused by rising inflation, which peaked at 9.1 percent in June 2022 — well short of the Federal Reserve’s 2 percent target.

Read more: How to protect yourself from inflation

In April, the latest data available, the consumer price index (CPI) was 3.4 percent higher than a year ago and 0.3 percent higher than in March, but overall growth was less than expected.

But while inflation has fallen and appears to be continuing its downward trend, interest rates and mortgage rates remain high, keeping the cost of housing high. Gasoline prices also rose 2.8 percent in April, suggesting motorists are suffering at the pump.

On the other hand, the price of food has come down, making food cheaper.

Economic problems remain high on the list of concerns for Americans ahead of November’s presidential election.

In its latest poll, Gallup found that 36 percent of Americans thought economic problems were the most important issue facing the country today, with 17 percent worried about the state of the U.S. economy in general and 12 percent about the cost of high living.

Non-economic problems, including government (21 percent) and immigration (18 percent), were considered the most important issues facing the country by about 75 percent of Americans in May.

Is the stress of financial insecurity affecting your mental health? Tell us about your experience by contacting g.carbonaro@newsweek.com