A new study by Virgin Money suggests more than half of working Brits (54%) suffer from anxiety in the week before payday and of those, a fifth (20%) said this is a regular monthly occurrence.
For a significant number of people, this is causing sleep disruption, with nearly nine in 10 (88%) people saying thoughts about money impact their sleep in some way. The research found more than one in 10 (12%) said money worries are keeping them awake every night, with another 14 per cent experiencing sleep disruption on a weekly basis.
The research also indicates people are equally likely to worry about their current financial situation (16%) as they are their future finances (16%), highlighting this isn’t a short-term problem. When it comes to worrying about money, the survey shows women (91%) are more likely to experience sleep disruption than men (85%).
Financial anxiety was found to be most likely to impact the sleep of 25-34-year-olds (90%), while the over 55s are the least likely to experience sleep disruption (86%).
The research also finds people are struggling with money worries regardless of income. People earning £25,000 - £50,000 are slightly more likely (88%) to be kept awake by financial anxiety than those earning £10,000 - £25,000 (87%), but high earners still struggle with money concerns, with eight in 10 of those earning £75,000 - £100,000 saying that money worries sometimes impact their sleep.
Clinical Psychotherapist, Dr Jo Gee, a specialist in anxiety and stress management, explains the phenomenon of ‘pre-pay day anxiety’ which relates to feelings of stress, nervousness and worry, which are triggered in the run-up to pay day.
She said: “We often notice our clients have increased anxiety in the seven days before pay day, which can range from mild ‘worry thoughts’, to money fear and even paranoia. The anticipation of pay day is enough to pump adrenaline into the bloodstream, which is responsible for many of our anxiety symptoms, such as increased heart rate and insomnia."
Five tips to get a better sleep despite money worries
To help prevent sleepless nights due to money worries, Katy Simpson, personal finance expert at Virgin Money, has partnered with Dr Hana Patel, sleep expert at Time4Sleep, to share five tips for getting a good night’s sleep in the face of stress.
Don’t shy away from your finances
Katy said: “When we’re confronted with something that’s causing us stress, it’s a common reaction for people to bury their worries and avoid interacting with their source of anxiety, in this case, their money. But ignoring your finances could actually create more problems.
“Avoiding checking your online bank account regularly for example, might mean that you don’t spot fraudulent activity. Or that you’re unaware of a bounced payment, meaning that you miss an instalment which could incur a charge from the supplier and negatively impact your credit score, or that you’re in your overdraft. Keeping on top of your online banking means that you’ll be aware of any potential issues, and you’ll be able to plan ahead.”
Schedule daily ‘worry time’
Dr Patel explained: “Scheduling dedicated ‘worry time’ will allow your mind to process anxious thoughts, including money worries. Reflect on these thoughts by writing them down, as seeing them in front of you can allow you to address your concerns, recognise how unrealistic some of these scenarios are and reduce any feelings of anxiety. Writing your worries down can also help you to focus on developing a solution and see clearly what actions you need to take to better manage your finances and ease your concerns, which can help you to feel more relaxed as the evening approaches.
“Take 10 minutes every day for ‘worry time’, you can even block this in your calendar so it becomes a daily practice. With repetition of ‘worry time’ you should begin to notice that you have a somewhat quieter mind, which is particularly important as you approach bedtime.”
Get the hang of budgeting
Katy said: “Taking some time at the start of every month to create a budget will help you to spend and save effectively, as well as allow you to spot and address any money issues in advance.
“You may find that the coming month has several important birthdays, or that a large annual payment is due. Budgeting means that you’ll have factored these expenses into your spending at the beginning of the month and will allow you to plan accordingly around your financial commitments.”
Get used to talking about your money
Katy explained: “Many people don’t feel able to talk openly about money with friends and family. As a result, some can feel forced into social activities or purchases that they can’t afford, and this can cause financial anxiety.
“By practising talking about your money with those close to you, you can get into the habit of saying ‘no’ to unnecessary expenses. It’s not a bad thing to tell a friend that you can’t afford to go out this weekend, or to explain to a family member that things are a bit tight around their birthday, but you’ll treat them after you’ve been paid.”
Routine, routine, routine
Dr Patel said: “The repetition of a bedtime routine can work wonders for reducing pre-sleep anxiety. Instead of allowing your mind to wander, you can focus on what’s next as part of your routine, whether that’s reading, running a bath or going to sleep.
“This routine will also help to trigger feelings of tiredness while allowing you to properly wind down, and this works particularly well when the routine is repeated. Aim to keep a regular bedtime too, as this will help to solidify the routine.”
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
READ NEXT:
People due £301 cost of living payment from DWP or HMRC can report it missing online
Martin Lewis urges families earning less than £40,000 to check for £9,600 income top-up
People on Universal Credit could face a penalty or court for not reporting any of these changes
New changes to DWP telephone system over next three years due to start with Universal Credit
New inquiry into cost of living payments set to determine if financial support fair for everyone
