Life happens and, sometimes, it can be incredibly worrisome from a financial standpoint. You’ve struggled through a divorce. Perhaps you’ve faced a life-threatening illness. And, you look at your bank account and wonder. What is going to happen now?
As much as 66 percent of Americans responding to a study from the American Psychiatric Association report they have extreme or are somewhat anxious about their financial health right now. This has risen from 57 percent in 2017. This financial stress impacts overall mental health, quality of life, and even physical health.
But, there’s plenty you can do about it. Here are 10 steps you can take from the very beginning to rebuild your financial health and achieve the financial goals you have. Take a deep breath, create a plan, get some help, and overcome your biggest financial worries.
#1: Take Account of Where You Are Right Now
Gather information about your existing expenses, income, and debts. A simple spreadsheet or a piece of paper is all you need. If you are going through an event that’s still unfolding – such as medical bills pouring in or divorce decrees that are pending – use the current figures you have. Look into all of your assets to determine worth. This information will ultimately help you determine the next steps.
#2: Create an Initial Budget
View budgets as a flexible, moldable tool capable of helping you to reach your goals. Base your budget on reality. If you don’t have enough coming in, you’ll need to find ways to earn more or cut back. But, you should have slots in your budget for spending money and savings. These are two areas commonly the downfall of those struggling to get back up. If you don’t have a plan for everything, you will not be able to follow a budget.
#3: Establish an Emergency Fund
Your emergency fund is money you do not touch unless you simply have to do so. Emergencies are things like not being able to work because your car broke down. They do not account for purchases of unnecessary items, gifts, Christmas time, or other expenses. Initially, work to put $1,000 aside. Then, work to build this up to 2 to 3 months’ worth of salary for you. Make this money as untouchable as you can, such as in a bank account.
#4: Stop Spending
It’s a harsh reality but one that can transform your life. You have to pay bills to keep a roof over your family’s head. But, you don’t have to go out to eat to feed them. Reducing your spending is perhaps the hardest part of rebuilding. You have to make a conscious effort with every dollar you spend. A few rules:
Consult with your partner for any purchase over $100.
Don’t use credit cards. If you don’t have cash, don’t buy it.
Wait 24 hours before making major purchases to determine if it is really necessary.
Go through your utilities. Look for areas to cut costs. Discuss any cost you have with the person you pay. Is there a way to reduce it?
Set Boundaries with Loved Ones
It’s not always easy, but setting financial boundaries with the people closest to you is crucial for your well-being—especially during times when you’re working to rebuild. Money conversations with family and friends can be awkward, but a lack of clear boundaries often leads to stress, resentment, or worse, a setback in your progress.
Start by sharing your financial goals—whether it’s paying off debt, building an emergency fund, or sticking to a strict budget. Be honest about what you can and cannot contribute, whether it’s splitting bills, joining in on group dinners, or lending money. If you need to say “no” to social events or requests for loans, remember that you are prioritizing your own stability and mental health.
A few tips for maintaining those boundaries:
- Be direct, but kind, in your communication. Let people know your limits without shame or guilt.
- Suggest alternatives when you have to decline—for example, hosting a potluck instead of going out to eat.
- Know it’s okay to stick to your financial plan, even if it means disappointing others for now.
Setting these boundaries protects both your finances and your peace of mind, giving you the strength to move forward on your own terms.
#5: Assess Income and Increase It If You Have To
It’s a harsh reality for some, but increasing income is often necessary to rebuild yourself. But, today, unlike ever before, there are plenty of ways to do so. Work from home. Offer consulting services with your skills and background. Do some type of freelance work. Take on a part-time job. You may not want to give up the extra time right now, but doing so can help you grow financial health in the long term.
#6: Find Solutions for Debts
Debt can crush even the best dreams. But, don’t view debt as a simple balance you need to pay down. Look for ways to keep it more affordable:
Consider refinancing a home loan to get cash out to pay down your unsecured debt (talk to your advisor about the benefits and risks first). Call your credit card lenders. Ask for a lower rate. Settle your debt for less than owed.
Simply, find ways to keep your costs down. Once you know the amount of debt you have, make it your mission to pay less.
#7: Get Help from a Financial Planner
Financial planners are not just for those who are wealthy. People who need help getting back on track financially need to turn to this type of professional as soon as possible. When you do, you gain insight into more options. You learn what you can and should do to achieve your goals. Suddenly, you have a plan, you know how to make it work, and it really feels good. You can easily benefit from speaking to a financial planner right now.
How Financial Counselors Can Help You Succeed
A financial counselor does much more than just listen to your concerns—they become an essential guide on your journey back to stability. These professionals work alongside you to unpack the challenges you’re facing, whether that’s building a workable budget, making sense of your credit score, or mapping out your debt reduction strategy.
Need to rebuild your relationship with money or boost your confidence in navigating financial decisions? A certified financial counselor can help you get there by offering practical tools and solutions tailored to your unique situation. Many can also assess your eligibility for government programs or valuable tax credits you might not know about, ensuring you take advantage of every opportunity available.
When searching for a financial counselor, prioritize those certified by the Association for Financial Counseling & Planning Education. You’ll also find support through banks, credit unions, and organizations like GreenPath Financial Wellness, all ready to help you regain your footing and chart a new, healthier financial path forward.
What Qualifications Should You Look For in a Financial Counselor?
Choose a financial counselor who has the right credentials and proven experience. Look for someone certified by respected organizations such as the Association for Financial Counseling & Planning Education (AFCPE), or who holds designations like AFC® (Accredited Financial Counselor). These qualifications indicate a strong background in helping people work through financial challenges and provide confidence that you’re getting knowledgeable, reliable advice.
Don’t hesitate to ask about their education, certifications, and experience—your financial health is too important to trust to just anyone.
#8: Find Positive Aspects in Your Life
Financial anxiety impacts quality of life. It creates a significant amount of stress for everyone. It feels impossible, but it becomes essential for you to talk to a professional, go out with friends, or spend some time meditating. Ease your anxiety and create a plan with a more clear, level head.
Draw Inspiration from Others’ Financial Journeys
One way to keep your outlook positive is by soaking up the experiences of others who have walked this path before you. Reading blogs or personal stories about people who’ve conquered overwhelming debt or learned to master their finances can remind you that you’re not alone. Sometimes, hearing about real-life challenges and triumphs brings a new perspective—a concrete example that change is possible.
Look for blogs that share practical tips or detail how someone moved from struggling to self-sufficiency. Dive into forums like Bogleheads or subreddits like r/personalfinance, where people share their wins and setbacks. Not only will you gather helpful, real-world advice, but you’ll see proof that progress comes in many shapes and sizes. And when motivation dips, just reading about someone else’s small win can give you the nudge to stick to your budget or try a new savings trick.
Another quick motivator: Try out free budgeting apps such as Mint or YNAB (You Need A Budget) to track your progress. Watching your own numbers improve, no matter how slowly, is a reminder that effort adds up over time. By filling your feed and routine with stories of hope and practical wins, your journey will feel less isolated—and a lot more possible.
How Rest and Exercise Help You Tackle Financial Stress
It’s easy to underestimate how much your physical well-being impacts your financial decision-making. When you’re sleep-deprived or running on empty, stress piles on faster and feels even heavier. Getting enough rest—yes, the classic eight hours or whatever helps you wake up feeling human—actually gives your mind a fighting chance against worry. You’re sharper, make better choices, and are less likely to make impulse decisions out of panic or frustration.
Similarly, regular exercise acts as a pressure valve for stress. A brisk walk, a neighborhood jog, or even some light stretching at home can clear your mind. Think of exercise as a budget reset for your mental state—it helps burn off anxious energy and lifts your mood. Plus, when you care for your physical health, you’re strengthening your resilience. That resilience comes in handy when facing tough financial choices, setbacks, or negotiating with creditors.
Don’t forget, little things add up:
- Make time for short walks during the day
- Pick a bedtime and stick to it when possible
- Do something active you actually enjoy (bike rides, yoga, a dance in the living room)
The bottom line: safeguarding your health pays real dividends. A well-rested, active you can approach financial repair with a clearer head—and honestly, that’s one of the best investments you can make in yourself.
The Real-World Impact of Meditation and Mindfulness on Mental Health
You might be surprised by just how powerful a few moments of calm can be. While it may sound simple—sitting quietly, focusing on your breath, tuning out the world—practices like meditation and mindfulness actually hold some serious weight when it comes to improving your mental health.
Meditation isn’t just a passing trend you see on social media or hear about from yoga teachers in San Francisco. From Harvard University to the Mayo Clinic, countless studies have shown that regular meditation can help reduce anxiety and stress, improve your mood, and even help manage symptoms of depression. People who meditate daily often report feeling more balanced and less overwhelmed—even when life gets busy and money is tight.
Mindfulness—focusing on the present moment without judgment—can help break cycles of worry and negative thinking. Techniques like mindful breathing or body scans can quiet the constant noise in your head. Even five minutes a day can make a difference.
Here are some benefits that real people have experienced:
- Lower levels of daily stress and improved sleep
- Greater ability to focus and make decisions (especially handy as you rebuild your finances)
- Increased emotional resilience, so setbacks don’t feel so overwhelming
- A calmer, more balanced outlook on life
Just remember: You don’t have to sit cross-legged on a mountaintop. Apps, audio guides, or even a quiet walk around the block can help you tap into these benefits. The more you practice, the more you’ll notice small changes that add up—making it easier to take on the challenges ahead.
#9: Set Regular Financial Goals
As you begin to see your plan come together, keep working at it. Remember, it’s flexible. You’ll want to set some basic goals for yourself including short-term, mid-term, and long-term goals. This could be to pay down debt, but also to build your savings. You may want to open an investment account, for example, once you reach a specific savings goal. Your advisor can help you to make this decision.
#10: Start Contributing to Your Financial Future
This is the last step, but it needs to happen as soon as possible. Your goal is to build your financial future. To do this, you simply have to start investing now. This allows compound interest to work for you. Talk to your financial planner about investment strategies based on your financial health, age, and goals. And, start planning for retirement.
Ready to Learn More?
Everyone needs a bit of help getting their finances in order. Don’t make the mistake of not taking the first step. You can rebuild after a life-changing event, no matter how hard it is, if you create a cohesive plan and work consistently towards the goal.