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Key Takeaways

  • Understand the barriers you face on the path to financial well-being.  
  • Try to stay calm and approach your finances with a clear head. 
  • Focus on building your budget and emergency funds.  
  • Take time to identify your necessary expenses, versus those that aren’t necessary.  
  • Work with a Certified Financial Planner® professional or Qualified Associate Financial Planner™ professional to manage your financial stress.  
Most Canadians have been impacted by financial stress in recent years, as inflation has risen and the cost of living has crept up. From university and college students to older adults in their golden years, we’re all affected to some extent. In fact, according to the 2025 FP Canada™ Financial Stress Index, 42% of Canadians cite money as their top source of stress, a number that’s grown from 38% in 2021.  

Of course, financial stress is very personal. Some people talk about it openly, while others keep it to themselves. What’s important to remember is that everyone has their own unique financial journey, and you don’t have to navigate yours alone. 

Why is Facing Financial Challenges So Hard?  

One of the main reasons many Canadians struggle to take control of their finances has to do with fear of making the wrong financial decisions. Just over half (52%) of Canadians say this fear is a barrier.  

In some cases, a lack of knowledge is at the root of these fears. Many Canadians (35%) don’t know where to start improving their finances, and 31% don’t know who to consult with to receive professional financial planning advice. Many rely on social media influencers without knowing their credentials or where they’re located, which can lead to further issues. For example, tax strategies that apply in another country aren’t applicable in Canada.   

Tellingly, 43% say they procrastinate due to stress or anxiety. The thought of tackling financial issues can cause stress, which is why many Canadians keep postponing actions that could improve their financial situations now. Inaction can lead to larger debts and worsen other existing financial issues. 

Whatever your barriers to financial well-being are, facing them can help you come up with an action plan. 

6 Strategies for Managing Financial Stress 

Every problem has a solution. While the right solution to financial stress may differ from one person to the next, there are some common strategies you may find helpful as you work to reduce your financial stress.  

  • Keep Calm. The most important strategy is to keep calm. If your mind is calm, you can think, plan, and work on solutions. Find ways to soothe yourself, whether that means taking a walk, meditating, playing sports, talking to friends and family, or something else altogether.  
  • Make a budget and stick to it. There are many ways to create a budget. If you’re a technology enthusiast, there are budgeting apps available, or you might try creating a simple Excel sheet. If you prefer pen and paper, make notes in a notebook you keep for this purpose only. Once you have your income and expenses in front of you, budgeting becomes much easier.  
  • Start an emergency fund. Building an emergency fund is great for preparing for the unknown, and for your mental health. Knowing you’re prepared for unforeseen financial issues can give you peace of mind.  
  • Differentiate between necessity, want, and luxury. It’s important to remember that necessities are required for survival, wants are things that can improve your quality of life, and luxuries are those you can enjoy when you’re treating yourself. Understanding these differences can help you postpone or avoid indulging in luxuries altogether when your budget is tight. Writing down your necessary expenses and ongoing purchases, then thinking about whether some of your purchases are unnecessary, can be a helpful step.  
  • Focus on high-interest debts and savings. Keep an eye on your debts, and deal with high-interest debts first. If you feel overwhelmed, a CFP® professional or QAFP® professional can help you create a debt management plan. Remember, when inflation and interest rates are high, the interest you receive on your savings is also high. To take advantage of this, consider moving some funds from chequing and saving accounts to high-interest saving accounts.  
  • Look for extra cash. Finding ways to put extra money in your pocket can reduce your financial stress. That may mean working a part-time job, selling things you don’t need, or purchasing preowned items you would usually buy brand new. Sometimes, you can negotiate to get better deals on necessities like insurance, banking fees, and internet or phone services. Remember, money saved is money earned. 

Seek Professional Advice 

Financial stress can keep you up at night and take a toll on your overall well-being, but you don’t have to manage it alone. A CFP professional or QAFP professional can help you understand all the pieces of your financial puzzle.  

Using a holistic approach, the right planner can help you focus on your short and long-term goals. While they won’t have a magic wand, they can set you on a path to financial well-being by providing a unique strategy for your specific situation.  

To find a CFP professional or QAFP professional to help you manage your financial stress, use the Find Your Planner tool.  

Ravi Chhabra headshot. He is wearing a dark suite with a burgundy tie.

Ravi Chhabra, CFP, is a director at Cigfin Corp. in Vaughan, ON.  


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