According to an April 2025 BW survey conducted online by The Harris Poll, about half of Americans (51%) regularly stress out about money.
The survey also revealed that women are more likely to stress about money regularly than men (56% vs. 45%), and baby boomers (ages 61-79) are less likely to stress about money than younger generations.
Factors contributing to financial stress include inflation, uncertainty over tariff policy, and high housing costs.
If you’re feeling stressed about money, here are six ways to improve your financial well-being:
1. Keep tabs on where your money is going
Understanding your core monthly expenses, discretionary income, and total spending is crucial for managing your finances effectively. Consider using expense tracking apps to automate this process.
2. Create a plan for the money you have
Once you have a clear picture of your spending, create a financial plan that aligns with your goals. Consider using the 50/30/20 budgeting framework to allocate your income effectively.
3. Start (or increase) your emergency fund
Having an emergency fund to cover three to six months of core expenses can provide peace of mind and financial security. Use a savings calculator to determine how much you need to save each month.
4. Reduce debt
Reducing credit card debt can significantly lower stress levels and improve overall financial well-being. Consider using debt payoff strategies like the debt snowball or debt avalanche to tackle your balances effectively.
5. Explore the property ladder
Homeownership can provide stability and reduce financial stress compared to renting. Consider purchasing a home to stabilize your housing costs in the long run.
Homeownership is not just about financial gains, but also provides stability and the ability to customize your living space, as noted by the Association for Financial Counseling and Planning Education. Despite the challenges of affordability, owning a house or condo may be more achievable than you realize.
A common misconception is that a 20% down payment is required to purchase a home, but this is not always the case. There are alternative options available, such as VA loan programs for veterans that don’t require a down payment, or first-time homebuyer programs that allow for a down payment as low as 3%. It’s worth exploring homeownership incentives and programs offered by various organizations at the community, local, state, and federal levels.
Ultimately, the decision to buy a home, including considerations around down payments and loans, is complex and depends on your individual circumstances. Homeownership may not be suitable for everyone, but it’s important to explore your options before ruling it out. Saving for a home now can make the process less stressful in the future.
Educating yourself about personal finance can also help reduce stress and improve your financial well-being. Research shows that financial literacy is linked to better financial outcomes, and there are many resources available to help you enhance your knowledge in this area.
It’s essential to stay informed about personal finance topics that may be unfamiliar to you. Regularly reading articles, listening to podcasts, and following reliable sources on social media can boost your financial literacy and confidence in managing your finances effectively.
The survey mentioned in this article was conducted online in the United States by The Harris Poll on behalf of BW. The sample data is accurate to within +/- 2.5 percentage points with a 95% confidence level. For more information on the survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Disclaimer: BW does not guarantee the accuracy or reliability of the information provided in this article. Readers should use this information at their own risk, as completeness and accuracy are not guaranteed. The content in this article should not be considered indicative of BW’s future performance or that of its affiliates. Forward-looking statements in the article involve risks and uncertainties that may differ from actual operational and financial results. following sentence:
The quick brown fox jumps over the lazy dog.
The fast brown fox leaps over the lethargic dog.